Lightstone Value Plus REIT V Investigation: Liquidity Concerns, Tender Offer, and Investor Losses
The White Law Group is continuing to investigate potential securities fraud claims involving broker-dealers who improperly recommended Lightstone Value Plus REIT V, a publicly registered non-traded real estate investment trust (REIT).
Non-traded REITs like Lightstone Value Plus REIT V are often marketed to retirees and conservative investors as “income investments,” yet many investors are unaware of the complexity, risks, and lack of liquidity associated with these products.
Recent Update: Share Repurchase Program Suspended & $31 Million Self-Tender Offer
According to company filings, the board of directors approved an issuer self-tender offer following its December 30, 2025 board meeting. At the same time, the company suspended its Share Repurchase Program (SRP).
Key Tender Offer Details
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Repurchase of up to 2.2 million shares
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Tender price: $14.08 per share
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Represents approximately 85% of the company’s most recent NAV of $16.56 per share
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Offer value estimated at $31 million
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Offer opened December 31, 2025 and is set to expire February 13, 2026, unless extended
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While SRP is suspended, no new redemption requests will be accepted, and currently pending requests will not be honored
Although the company’s September 30, 2025 NAV was reported at $16.56, the REIT disclosed that this valuation is only a “snapshot in time” and may not reflect current real estate and capital market conditions.
This update follows years of liquidity challenges for investors.
The company previously suspended redemptions in 2019, later reopening limited death-only redemptions, and reported stopping shareholder distributions during multiple quarterly periods.
Liquidity Remains a Significant Issue for Investors
One of the primary risks of non-traded REITs is the lack of a liquid secondary market. Even when liquidity events occur, investors typically face losses.
Historically, shares of Lightstone Value Plus REIT V have appeared on secondary markets such as Central Trade & Transfer for significantly discounted prices, indicating substantial losses for many investors.
Why Did Brokers Sell Lightstone Value Plus REIT V to Retail Investors?
Non-traded REITs are often attractive to brokers due to extremely high commission structures, which can reach up to 15%. Unfortunately, these incentives sometimes lead to unsuitable investment recommendations, particularly for:
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Retirees
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Conservative investors
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Investors needing access to capital
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Individuals relying on investment income
Broker-dealers are required to:
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Perform adequate due diligence
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Fully disclose risks
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Ensure investments are suitable for each investor’s risk tolerance, financial situation, and investment objectives
If they fail to do so, they may be held liable for resulting losses.
Recovery Options — FINRA Arbitration
Investors may be able to recover losses through FINRA arbitration, not by suing the REIT itself, but by pursuing claims against the financial advisor and brokerage firm that recommended the investment.
Claims may involve:
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Unsuitable investment recommendations
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Misrepresentation or failure to disclose risks
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Failure to supervise
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High-commission conflict of interest
The White Law Group has successfully handled hundreds of FINRA arbitration claims involving non-traded REITs and other high-risk alternative investments.
Lightstone Value Plus REIT V Investors — Free Consultation
If you invested in Lightstone Value Plus REIT V and suffered losses or have concerns about your investment, The White Law Group may be able to help. Call for a free consultation: 888-637-5510
Visit us: www.whitesecuritieslaw.com
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
Frequently Asked Questions
Can I still redeem my shares of Lightstone Value Plus REIT V?
Currently, the company has suspended its Share Repurchase Program (SRP). While the self-tender offer provides a limited liquidity option, it typically comes at a discount to the reported NAV, and participation is restricted and time-limited. Investors may also explore secondary market sales, although those transactions often occur at significant discounts.
Why are investors concerned about Lightstone Value Plus REIT V?
Investors are concerned due to limited liquidity, suspended redemptions, fluctuating valuations, and historical periods without distributions. Non-traded REITs are complex investments with higher risks than many investors realize, and financial advisors may not always have fully explained these risks prior to recommending the investment.
Can I recover losses from Lightstone Value Plus REIT V?
Possibly. Investors may be able to pursue FINRA arbitration claims against the brokerage firm or financial advisor who recommended the REIT if the investment was unsuitable, risks were misrepresented, or the firm failed to properly supervise the recommendation. Recovery typically focuses on the advisor and firm—not the REIT itself.
