September 12, 2017 Comments (0) Blog, Current Investigations

Secondary Market Listing: Lightstone Value Plus REIT V

Lightstone Value Plus REIT V
(Last Updated On: September 12, 2017)

Recovery of Lightstone Value Plus REIT V Investment Losses

Have you suffered investment losses in Lightstone Value Plus REIT V? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

According to SEC filings, in July, Behringer Harvard Opportunity REIT II Inc. changed its name to Lightstone Value Plus Real Estate Investment Trust V Inc.

Behringer Harvard Opportunity REIT II went effective in January 2008 and closed in March 2012 after raising $265 million in investor equity. The company’s portfolio is comprised of eight properties with a total investment cost of $229.2 million, according to Summit Investment Research.

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 Lightstone Value Plus REIT V. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

Are REITs suitable for you?

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.

Non-traded REITs like Lightstone Value Plus REIT V 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. According to Central Trade and Transfer, a secondary market for private placements, shares of Lightstone Value Plus REIT V are currently listed for just $5.75/share. The original offering price was $10.00/share.

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 Lightstone Value Plus REIT V 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.