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Non-Traded REITS Investment Losses

“Non-traded REITs”are public companies, but their shares are not listed on any stock exchange. This makes non-traded REITs a very opaque and a private market (not to mention illiquid).  Unlike publicly traded REITs, non-traded REITs are illiquid and specify when investors can redeem shares, typically after seven years. At that point, the REIT may go public and begin trading on an exchange — or it may be liquidated.

Unfortunately, many conservative or elderly clients were sold non-traded REITs.  Occasionally, the true risks of these investments allegedly were not disclosed to the clients. Many retirees who couldn’t afford to take the risks associated with non-traded REITs had a substantial percentage of their net worth in these investments. In some instances, they may have been unsuitable investments. Fortunately, some, or all, of the frozen funds or investment losses in non-traded REITs may be recoverable against the brokerage firms who sold them through FINRA arbitration claims and lawsuits. 

The following are examples of non-traded REITs sold to investors by brokers and full service 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


Beacon Capital Partners, LLC

Blackstone Real Estate Advisors

Fairfield Residential LLC

Federal Capital Partners

Forest Capital Partners LLC

Gables Residential Trust

INREIT Real Estate Investment Trust

RREEF America REIT II, Inc.

RREEF America REIT III, Inc.

Spirit Finance Corporation

The Community Development Trust

Verde Realty

Watson Land Company

Wereldhave USA, Inc.

Soreide Law Group, PLLC, believes that many of the non-traded REITs are far riskier than people knew and were not appropriate for some investors, particularly the elderly, retired or the conservative investors. If you feel these risks were not disclosed  by your broker or the brokerage firms who sold them to you, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your investment losses.  To speak with an attorney, call 888-760-6552, or visit Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

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