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Written by 8:23 am Blog, Current Investigations

Lightstone Value Plus REIT V Redemptions Limited to “Stockholder’s Death” 

Lightstone Value Plus REIT V Tender offer $1.50/share, featured by top securities fraud attorneys, The White Law Group

The White Law Group is investigating potential securities claims involving Lightstone Value Plus REIT V 

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like Lightstone Value Plus REIT V. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.  

Lightstone Value Plus REIT V is a publicly registered non-traded REIT, formerly known as Behringer Harvard Opportunity REIT II.  

Unfortunately for investors, the company suspended redemptions for shareholders in December 2019. While the company did reopen the SRP effective March 25, 2021, it is “solely for redemptions submitted in connection with a stockholder’s death.” The price for all redemptions is reportedly $9.42, which is 100% of the NAV per Share as of September 30, 2020.  

According to the company, “deaths that occurred subsequent to January 1, 2020 are eligible for consideration.” Beginning January 1, 2022, requests for redemptions in connection with a stockholder’s death must be submitted and received by the Company within one year of the stockholder’s date of death for consideration. 

According to a quarterly report filed with the SEC last week, The Company did not make any distributions to its stockholders during the nine months ended September 30, 2021 and 2020. 

As of September 30, 2020, the estimated NAV per Share was $9.42 per share and shares were originally sold for $10 per share.  

Shares of Lighthouse Value Plus REIT V were recently listed for sale on Central Trade & Transfer, a secondary market for alternative investments for just $5.25 per share, indicating losses for investors.   

Selling your Shares of Lightstone Value Plus REIT V 

Liquidity can be a problem for investors in non-traded REITs. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.  

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex.  Often, they are better suited for sophisticated and institutional investors.  

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. Brokers have an obligation to make investment recommendations that are consistent with their clients’ risk tolerance, net worth, investment objectives and experience in the market.  

Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.  

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim 

If you suffered losses investing in Lightstone Value Plus REIT V and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.  

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.  

For more information on The White Law Group, visit www.whitesecuritieslaw.com 




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