The White Law Group is investigating potential securities fraud claims on behalf of investors involving non-traded REIT investments.
Non-traded REITs are less regulated than other, more traditional investments and often pay a much higher commission than other products. Additionally, non-traded REITs are generally illiquid, making them unsuitable for elderly and retired clients who purchased them at the recommendation of their financial advisor.
Another problem with non-traded REITs is the manner in which they are sold and the disclosures made about the investments to investors. Many investors in non-traded REITs have found themselves blindsided after discovering that their investments were high-risk, illiquid and contained highly specific and lengthy exit clauses.
FINRA is particularly focused on non-traded REITs right now, as it seems that many of the independent brokerage firms are selling these products to their clients. These firms have a fiduciary duty to their clients to research the investments they recommend prior to offering them for sale and to insure that the investments are appropriate for the client. Given the issues involved in non-traded REITs (and the commissions that are paid to the broker and brokerage firm), in many cases it is impossible for a brokerage firm to demonstrate that they have fulfilled their obligation to the client as these investments are simply inappropriate for many investors.
Some examples of non-traded REITs sold to investors by brokerage firms are as follows:
Apple REIT Six, Inc.
Apple REIT Seven, Inc.
Apple REIT Eight, Inc.
Apple REIT Nine, Inc.
Behringer Harvard REIT I, Inc.
Behringer Harvard Multifamily REIT I, Inc.
Behringer Harvard Opportunity REIT I, Inc.
Behringer Harvard Opportunity REIT II, Inc.
CNL Lifestyle Properties, Inc.
Cole Credit Property Trust, Inc.
Cole Credit Property Trust II, Inc.
Cole Credit Property Trust III, Inc.
Grubb & Ellis Apartment REIT, Inc.
Healthcare Trust of America, Inc.
Hines REIT, Inc.
Inland American Real Estate Trust, Inc.
Inland Western Retail Real Estate Trust, Inc.
KBS Real Estate Investment Trust I, Inc.
KBS Real Estate Investment Trust II, Inc.
Piedmont Office Realty Trust, Inc.
Steadfast Income REIT, Inc.
Wells Real Estate Investment Trust II
Anderson-Tully Company
Blackstone Real Estate Advisors
Fairfield Residential LLC
INREIT Real Estate Investment Trust
RREEF America REIT II, Inc.
RREEF America REIT III, Inc.
The Community Development Trust
Verde Realty
If you have questions about a non-traded REIT investment you purchased, the securities attorneys of The White Law Group may be able to help. For a free consultation, call the firm’s Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://whitesecuritieslaw.com.
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