Posts tagged ‘REIT fraud lawyer’
Recovery of Columbia Property Trust Losses
Have you suffered losses in Columbia Property Trust? If so, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA arbitration claim.
According to its website, Columbia Property Trust is an investment management company with a $5+ billion portfolio comprising of more than 60 Class-A office properties in key markets nationwide. Columbia Property Trust was founded in Norcross, Georgia, a suburb of Atlanta, under the former name Wells REIT II, Inc.
Based on reports, it appears that the share price of Columbia Property Trust (Wells REIT II) has declined by 30% or more. The White Law Group is investigating the liability that brokerage firms may have for selling Columbia Property Trust.
Brokerage firms have a fiduciary duty to perform adequate due diligence on any investment before offering it for sale to their clients. Additionally, broker-dealers must evaluate the investor’s age, investment objectives, investment experience, and net worth in order to determine whether a specific investment recommendation is suitable. Given the performance of Columbia Property Trust and how non-traded REITs are often sold as low risk, income producing investments, it appears that the firms that sold this investment may be liable for the resulting loss.
If you invested in Columbia Property Trust (Wells REIT II) and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 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 Boca Raton, Florida. For more information on the firm, visit http://www.whitesecuritieslaw.com.
TNP Strategic Retail Trust cuts dividend.
According to a recent SEC filing, because of loan compliance issues with its lenders, TNP Strategic Retail Trust Inc. will not pay a dividend in the first quarter of 2013 and may not pay any type of distribution for 2013.
Based on reports, short-term liquidity issues, including an accelerated maturity date of loans, lender fees and the cost of potential litigation with lenders, are the cause of the cut in distributions for the REIT, which has $272 million in assets.
The SEC filing also stated that one of the REIT’s lenders, Torchlight Investors LLC, is blocking the REIT from naming a new adviser, Glenborough LLC.
This news comes shortly after Tony Thompson, the head of TNP Strategic Retail Trust and Thompson National Properties, sent a note to brokerage firms promoting the REITs strong outlook. Specifically, Mr. Thompson apparently stated that its net asset value was 6% higher than its share price (Such a discrepancy between a REIT’s selling price and its Net Asset Value, or NAV, could be dilutive to shareholders and provide brokers with a strong sales pitch).
The White Law Group continues to investigate the liability that brokers-dealers may have for making unsuitable investment recommendation and misrepresenting the risks of non-traded REITs like TNP Strategic Trust.
Broker-dealers have a fiduciary duty to perform adequate due diligence on any investment. The Financial Industry Regulator Authority (FINRA) requires that broker-dealer fully disclose all the risk in any investment when making recommendations, and ensure that the investment is suitable given their clients age, risk tolerance, financial objectives, net worth, and investment experience.
If you feel that your broker-dealer misrepresented TNP Strategic Retail Trust or another investment offering with Thompson National Properties, the securities attorneys of The White Law Group may be able to help you recover your losses through FINRA Arbitration. For a free consultation please call The White Law Group at 312-238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit http://www.whitesecuritieslaw.com
More Problems for Inland American?
According to reports, Inland American Real Estate Trust recently announced that some investors are alleging the REIT’s management failed in its fiduciary responsibility, resulting in false valuations and excess fees being paid to the REIT’s business manager.
In its annual report, the REIT stated that two separate groups of shareholders are raising similar claims as those announced in a Securities and Exchange Commission investigation. Last year, the REIT stated that the SEC had launched a fact-finding investigation to determine whether there had been violations regarding the REIT’s management fees, transactions with affiliates and distributions to investors. Now it appears that certain shareholders are asking Inland American to investigate similar claims.
According to an Investment News report, the first group of shareholders alleges that Inland American’s management “falsely reported the value of our common stock until 2010, caused us to purchase shares of our common stock from stockholders in excess of their value, and disguised returns of capital paid to stockholders as REIT income, resulting in the payment of fees to the business manager to which it was not entitled.”
The same article states that the Inland American board has formed a special litigation committee to investigate the demands of the stockholders.
Inland American is one of several large nontraded REITs that were sold to investors during the real estate bubble at $10 per share but have suffered dramatic drops in valuations since then. At the end of last year, the REIT said its estimated per share value was $6.93 per share, down from $7.22 per share at the end of 2011.
The White Law Group continues to investigate potential FINRA arbitration claims involving Inland American REIT. Brokerage firms have a fiduciary duty to their clients to perform due diligence on any investment prior to offering it for sale to their clients. Broker-dealers also are obligated to ensure that any recommendations they make are appropriate in light of the investor’s age, investment experience, net worth, and investment objectives. Based on the information now known about Inland American, it appears that the firm’s that recommended Inland American REIT to their clients may have done so improperly.
If you believe that you have suffered losses as a result of your investment in Inland American REIT, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, FINRA arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.
Cole Credit Property Trust II Announce Merger with Spirit Realty Capital
Are you concerned about your investment in Cole Credit Property Trust II? If so, the following information may be of some assistance to you.
According to Cole Capital’s website, the Cole Credit Property Trust II (CCPT II) recently announced the approval of a definitive agreement to merge with Spirit Realty Capital on January 22, 2013. The combined company will create the second largest publicly traded triple-net lease REIT and is valued at approximately $7.1 billion. The merger is expected to close in the 3rd quarter of 2013.
The combined REIT will retain the Spirit Realty name and will be lead by the Spirit Realty management team. In addition, the combined REIT will have a nine-member board of directors, seven of whom will be existing board members of Spirit Realty and two representatives from CCPT II. This may come as good news to CCPT II investors who have not seen the returns on their investment as they had hoped.
Christopher H. Cole, founder and executive chairman of Cole said that the merger “represents a positive cumulative total return on their investment and provides an opportunity for liquidity in what will be one of the largest publicly traded net lease REITs.” The combined REIT will be trade on the New York Stock Exchange under Spirit Realty’s existing ticker “SRC.”
Spirit Realty shareholders will receive a fixed exchange ratio of 1.9048 CCPT II shares for each share of Spirit Realty common stock and will own approximately 44%of the combined REIT. The announcement stated that “Based on Spirit Realty’s closing price of $17.82 per share on January 18, 2013, the exchange ratio implies a value of $9.36 per CCPT II share and reflects a positive cumulative total return including dividends of 20-42% for shareholders of CCPT II, depending on the shareholder holding period.”
To learn more about the merger visit https://www.colecapital.com/
If you have questions regarding your investment in Cole Credit Property Trust II, and would like to speak to a securities attorney, please call the White Law Group at 312-238-9650.
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 Boca Raton, Florida.
To learn more about The White Law Group visit www.whitesecuritieslaw.com.
Update on KBS Non-Traded REIT Securities Fraud Investigation
KBS was quick to file an Amended Free Writing Prospectus (FWP) with the SEC after Keith D. Hall, KBS Capital Advisor co-founder and managing partner, appeared on Fox Business. The document filed on February 20th, 2013 is intended to correct and clarify approximately 15 statements Hall made in the 5 min TV segment titled “Non-Traded REITS Investing 101.”
KBS headquarters are located in Newport Beach, Calif. According to their website KBS began as a real estate investment company to provided real estate investments on behalf of large institutional clients. In 2005 KBS Capital Advisors was created to manage the assets of KBS non-traded REITs.
For prospective Real Estate investors, Hall’s interview was very persuasive in promoting non-traded REITs like those offered by KBS. However, the FWP document not only clarifies, it sheds light on some of the risks involved in non-traded REITs.
For example, Hall commented “…there is no volatility in the stock.” However, the FWP points out that even though non-traded REIT shares are not subject to broader market volatility, that the value of the REIT may be volatile. Investors in KBS Real Estate Investment Trust, Inc., know this to be true. Shares purchased between 2006 and 2008 initially for $10.00 per share are currently valued at $5.18 as of December 18, 2012.
To learn more about the Amended Free Writing Prospectus, and to read a transcript of the interview visit http://www.sec.gov/Archives/edgar/data/1482430/000119312513073587/d490785dfwp.htm
There is an inherent risk with non-trade REITs, as with any investment, and it is the responsibility of the brokerage firm selling the non-traded REIT to adequately disclose all risks. Non-trade REITs are not suitable for investors who need liquidity in their investment. Other suitability factors that should be considered by a brokerage firm prior to recommending a non-traded REIT are age, financial needs, and risk tolerance to name a few.
However, many brokerage firms overlook suitability regulations set forth by the SEC to earn the high commission that non-trade REITs, like KBS, offer. KBS Real Estate Investment Trust REITs offer a 6.5% sales commission, in addition to a 3.0% dealer manager fee.
Brokerage firms that do not perform adequate due diligences on an investment or demonstrate a breach of fiduciary duty can be held accountable for losses incurred through FINRA arbitration.
The White Law Group continues to investigate FINRA arbitration claims involving KBS Real Estate Investment Trust, Inc., KBS Real Estate Investment Trust II, KBS Real Estate Investment Trust III, KBS Strategic Opportunity REIT, and KBS Legacy Partners Apartment REIT.
If you invested in a KBS non-traded REIT and would like to discuss you litigation options, please call the securities attorneys of The White Law Group at 312-238-9650 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 Boca Raton, Florida.
For more information on The White Law Group, visit http://whitesecuritieslaw.com