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Sealy Industrial Partners LP: Securities Investigation

Sealy Industrial Partners LP: Securities Investigation featured by top securities fraud attorneys, The White Law Group

Sealy Industrial Partners LP- Secondary Sales Price may Indicate Losses

Are you concerned about your investment in Sealy Industrial Partners LP? If so, The White Law Group may be able to help. Sealy & Company is purportedly a sponsor of alternative investment real estate offerings, such as Sealy Industrial Partners LP.

Sealy & Company, a commercial real estate investment and operating company, reportedly filed a reg D to raise capital from investors in 2019 for the real estate fund offering Sealy Industrial Partners LP. The total offering amount sold to investors was purportedly $102,455,316.

According to Lodas Markets, a secondary market from non-traded investments, the company values its shares at $127. Recently shares were sold for $70.00 per share, which may indicate significant losses for investors.

Complex Investment Products – Sealy Industrial Partners LP

Private placement investments are complex investment products. They are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.

In addition to the risks involved with private placements, there are risks of investing in commercial real estate. Higher interest rates, higher property taxes and insurance and construction costs, along with a surge in new supply and more modest rent growth, are making it difficult for investors to see healthy returns.

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling alternative investment products, like Sealy Industrial Partners LP, to their clients.

Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

Is a Private Placement Investment Suitable for you?

Your broker is required to assess your investment objectives, risk tolerance, financial situation, and investment experience before making investment recommendations. This involves understanding your goals, time horizon, liquidity needs, and tolerance for potential losses.

Your broker should also ensure that you are aware of the risks associated with private placements, including limited liquidity, lack of regulatory oversight, and the potential for loss of principal.

Broker Due Diligence

Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor considering that investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income.

Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.

If you have concerns regarding your investment in Sealy Industrial Partners LP or another Sealy & Company offering and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.

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 Seattle, Washington.

Last modified: March 25, 2024