Lax & Neville LLP, a leading securities arbitration law firm, is currently investigating possible sales practice violations in the sales of nontraded REITs by various firms to the public. Many investors have complained that they were told that nontraded REITs were stable, long-term investments. While some investors were told about the lack of a market for resale, others were not, or were never informed of the importance of liquidity. Some investors were told that these REITS invested in commercial real estate and that this asset class historically had performed well, without a full discussion of commercial real estate’s ups and downs. Since most nontraded REITs are only given a value once a year, it is difficult for investors to understand their value. Many investors have watched their REIT investments significantly plunge in value and still do not understand what they can do about it.
Some of the larger nontraded REITs with large losses are as follows:
Decline per share
(from offering through most recent SEC filing)
Behringer Harvard Opportunity REIT I -58.80%
Behringer Harvard REIT I -53.60%
Behringer Harvard Short-Term Opportunity Fund -96%
Cornerstone Core Properties REIT -71.88%
Inland Western Retail Real Estate Trust Inc. -30.50%
KBS Real Estate Investment Trust Inc. -48.40%
If you are an investor/ victim who invested in nontraded REITs, and would like to learn more about your options for possible recovery, please contact our firm at (212) 696 – 1999.