Oaktree Real Estate Income Trust, Inc. Securities Investigation

Concerned about your investment in Oaktree Real Estate Income Trust, Inc.?

Are you concerned about your investment in Oaktree Real Estate Income Trust? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that recommended the investment.

Oaktree Real Estate Income Trust, Inc., non-traded REIT, reportedly seeks to invest in “a diversified portfolio of income-producing real estate and real estate-related debt investments,” according to its website. Oaktree REIT’s portfolio includes real estate loans, debt-related securities and interests in joint ventures that own multifamily and office properties.

According to Factright, a due diligence site focused on alternative investments, U.S. REITs have drawn down massive lines of credit as of the end of the first quarter of 2020.  Apparently, there was a huge push to gain liquidity to survive the COVID-19 global  pandemic, particularly  amongst retail and hotel REITs.

According to filings with the Securities and Exchange Commission (SEC) on June 8, 2020, Oaktree REIT announced that it had entered into a $125 million line of credit with an affiliate of its sponsor, Oaktree Capital Management, L.P.   Oaktree REIT further noted that it collected 94% of April multifamily rents, with 3% of rent subject to payment plans, and 87% of April office rents, with 5 of its 49 office tenants requesting rent relief.

Is a Non-traded REIT suitable for you?

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

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 and often better suited for sophisticated and institutional investors.

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. Brokers have an opportunity to earn high commissions—sometimes as high as 15% — on non-traded REITs. This may provide some brokers with enough incentive to make unsuitable investment recommendations.

Further, non-traded REITs generally  lack liquidity. 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.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to 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.

Free Consultation

If you suffered losses investing in Oaktree Real Estate Income Trust, The White Law Group may be able to help you. For a free consultation with a securities attorney, please call our law offices 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 Franklin, Tennessee.

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