According to InvestmentNews, in a filing with the SEC, CNL Lifestyle Properties recently announced that the company is seeking a liquidity event in which the company will sell the REIT or shares in the REIT on the stock exchange. In addition, the company announced that it was suspending its distribution reinvestment plan and share redemption plan.
The non-traded REIT was launched in 2003 and sold for $10 per share. At the end of last year, CNL REIT was valued at $6.85 per share with approximately $2.7 billion in assets. Investment News reports the REIT signed an agreement to sell its golf portfolio of properties which account for 19% of the REIT’s holdings.
Many brokers pitched non-traded REIT’s, like CNL, as low risk and relatively safe products. In many cases, these brokers failed to adequately disclose the risks and liquidity problems often associated with non-traded REITs.
Brokerage firms have a fiduciary duty to their clients to perform adequate due diligence on an investment prior to recommending it for sale, as well as to ensure that any investment recommended is appropriate in light of the investor’s age, investment experience, net worth, and investment objectives.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA dispute resolution claim.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of CNL Lifestyle Properties, please contact 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 Vero Beach, Florida.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.