April 10, 2017 Comments (0) Current Investigations

CNL Lifestyle Properties Final Liquidation

CNL Lifestyle Properties
(Last Updated On: April 10, 2017)

Recovery of Investment Losses in CNL Lifestyle Properties

Have you suffered losses investing in CNL Lifestyle Properties? If so, The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

CNL Lifestyle Properties is a real estate investment trust (REIT) that invests in income-producing properties with a focus on lifestyle-related industries, according to their website.

The company acquires properties and leases them on a long-term, triple-net lease basis or engages qualified third-party managers to operate properties on its behalf. CNL Lifestyle Properties invests in properties with the potential for long-term revenue generation and appreciation based on demographic trends, associated concentrations of wealth and other proprietary underwriting models.

As previously discussed, CNL Lifestyle Properties Inc., received stockholder approval at a special meeting of stockholders to sell its remaining assets to EPR Properties (NYSE: EPR) and Ski Resort Holdings and dissolve the company.

Pursuant to a plan of liquidation that was also approved at the special meeting, there will be a special distribution of the net proceeds of the sale to the stockholders of approximately $153.2 million and 8.85 million common shares of beneficial interest of EPR.

Based on the closing price of EPR common shares of $74.28 on the April 6th closing date, the value of the share consideration is approximately $657.5 million, or approximately $2.02 per each share of company common stock. CNL Lifestyle noted that the value of the share consideration may change between the closing date and the date of the interim distribution.

The record date for stockholders entitled to receive the share consideration is March 31, 2017, and the company expects that the board will authorize the interim distribution on April 20th. The share consideration will be distributed based on a ratio of approximately 2.7219 shares of EPR common stock for 100 shares of CNL Lifestyle common stock. Shares of EPR closed at $74.35 on Friday.

The trouble with Non-traded REITs

The trouble with non-traded REITs, like CNL Lifestyle Properties, is that they are complex and inherently risky products.

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those 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.

Lack of liquidity is often problematic for many investors.  Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

Recovery of Investment Losses

If you invested in CNL Lifestyle Properties or another non-traded REIT and would like to discuss your litigation options with a securities attorney, please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group and its investigations, visit www.whitesecuritieslaw.com.