September 8, 2011 Comments (0) Blog, Securities Fraud

Potential Issues with Investments in Non-traded REITs

Non-traded REITs are a legitimate investment option for the right investor. REITs capitalize on tax law and often provide the smaller investor with an opportunity to invest in commercial real estate.

However, non-traded REITs are not for everyone. There are a few problems with these investments that make them unsuitable for retired investors or investors needing an income stream.

Non-traded REITs are not traded on any stock exchange and are generally illiquid – making them difficult to sell if needed. Additionally, non-traded REITs are less regulated than other types of investments like stocks, bonds, or mutual funds, increasing the likelihood of fraud with respect to the REITs themselves.

Further, non-traded REITs often pay a high commission to the financial professional – up to as much as 15%, which may sometimes explain the broker’s motivation in recommending the product. Finally, non-traded REITs invest entirely in one sector (real estate), exposing an investor to the risks of the real estate market if the investor is not well diversified in his or her other investments

The White Law Group is currently representing investors in many claims involving non-traded REITs. The firm is currently investigating the manner in which brokerage firms have sold non-traded REITs.

We have compiled a list of upon investigation and belief are many of the available Non-traded REITs:
American Realty Capital Healthcare Trust, American Realty Capital New York Recovery REIT, Inc., American Realty Capital Trust, Apple REIT Six Inc., Apple REIT Seven, Inc., Apple REIT Eight, Inc., Apple REIT Nine, Inc., Behringer Harvard REIT I, Inc., Behringer Harvard Multifamily REIT I, Behringer Harvard Opportunity REIT I, Behringer Harvard Opportunity REIT II, Carey Watermark Investors Incorporated, CNL Lifestyle Properties, Inc. , CNL Macquarie Global Growth Trust, Inc., Cole Credit Property Trust, Inc., Cole Credit Property Trust II, Inc., Cole Credit Property Trust III, Inc., Corporate Property Associates 15, Corporate Property Associates 16 – Global, Inc., Corporate Property Associates 17 – Global, Inc., Healthcare Trust of America, Inc., Hines Global REIT, Inc., Hines REIT, Inc., Inland American Real Estate Trust, Inc., Inland Diversified Real Estate Trust, Inc., Inland Western Retail Real Estate Trust, Inc., INREIT Real Estate Investment Trust, KBS Legacy Partners Apartment REIT, Inc., KBS Real Estate Investment Trust I, Inc., KBS Real Estate Investment Trust II, Inc., KBS Strategic Opportunity REIT, Inc., Macquarie CNL Global Income Trust, Inc., Phillips Edison – ARC Shopping Center REIT, Steadfast Income REIT, Inc., Wells Real Estate Investment Trust II, Wells Timberland REIT, Inc.

If you have invested in any of these non-traded REITs and are concerned about your investment, the securities attorneys of The White Law Group may be able to help.  For a free consultation, please call the firm’s Chicago office 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.

For more information on The White Law Group, please visit our website at