SEC records indicate that the purpose of the name change was to better reflect the company’s recent changes which include the transition to “self-management transaction” and “spin-off lodging platform.”
According to SEC records, Inland American has undergone a name change – the REIT is now called InvenTrust Properties Corp. In addition, fillings report a recent tender offer of $2.00 per unit from Mackenzie Realty. Unfortunately for many investors, this would be a significant loss on their capital investment.
The trouble with non-traded REITs like Inland American is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITs are considerably more complex securities products, making them better suited for sophisticated and institutional investors.
Broker dealers that sell REITs are required to perform adequate due diligence on investment and to ensure that all recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.
Unfortunately, the high sales commissions associated with REITs often provides some broker dealers with enough incentive to overlook suitability requirements (broker-dealers earn extremely high sales commission for selling REITs, sometimes as high as 15%).
If you have invested in the InvenTrust Properties, or another Inland American investment, and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 312-238-9650 for a free consultation.
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 Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.whitesecuritieslaw.com.