June 30, 2017 Comments (0) Blog, Current Investigations, Securities Fraud

Industrial Property Trust Investment Losses

Industrial Property Trust
(Last Updated On: July 26, 2017)

Recovery of Investment Losses in Industrial Property Trust

Have you suffered investment losses in Industrial Property Trust? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like Industrial Property Trust. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

According to their website, “Dividend Capital is an innovative real estate investment management firm focused on building value through the power of real estate”. Dividend Capital sponsors REIT programs such as Industrial Property Trust.

Industrial Property Trust Investor Update

According to recent SEC filings, on December 13, 2016, the company disclosed that they would cease new sales of primary offering shares at the earlier to occur of either (i) June 30, 2017 or (ii) the date on which they will sell all of the shares that remain available for sale pursuant to their primary offering.

As of June 30, 2017, the company’s primary offering has been closed to new subscriptions; provided that they may accept any pending subscriptions that they do not otherwise reject. The company is continuing to offer and sell shares pursuant to their distribution reinvestment plan. They may terminate their distribution reinvestment plan offering at any time.

Investing in REITs is Risky Business

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%.  Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

In addition to the high risks, non-traded REITs, like Industrial Property Trust, despite its name, often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

If you suffered losses investing in Industrial Property Trust and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

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

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