Recovery of Losses in First Capital Real Estate Trust Inc.
Are you concerned about investment losses in First Capital Real Estate Trust Inc.? If so, The White Law Group may be able to help you. It’s possible for you to recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
According to their website, First Capital Real Estate Trust Inc. is a privately held commercial and residential real estate finance firm that was organized in 2003. The company is actively involved in real estate acquisition, land development, residential and commercial construction, and retail operations.
First Capital has three strategic components to its business. First Capital sponsors a public, non-traded Real Estate Investment Trust, and owns the external advisor to that REIT, and has private holdings including development projects, and retail and operating companies.
On May 30, 2017, the REIT reported that multiple indirect subsidiaries had each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of California. The indirect subsidiaries, and the respective ownership interest of First Capital Real Estate Operating Partnership, are: Township Nine Owner, LLC (31.3%), Capitol Station Holding, LLC (100%), Capitol Station Member (100%), LLC and Capitol Station 65, LLC (100%).
First Capital notes that the voluntary bankruptcies of the indirect subsidiaries may materially affect First Capital’s receipt of interests in its reverse merger with Presidential Realty Corporation.
This could be more bad news for investors. As we told you in October, First Capital Real Estate Trust Inc. announced plans to suspend monthly distributions. The company reported the suspension which was effective in November, was necessary to protect cash reserves. Then in November, Investment News reported that the REIT was failing to pay employees on time. They have missed filing financial statements with the SEC for more than a year.
The Risks of REITs
Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, are considerably more complex and involve a high degree of risk. Unfortunately, many investors are unaware of the risks and liquidity problems with REITs such as First Capital Real Estate Trust, Inc.
The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to its investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must insure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
If brokerage firms fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
If you have invested in First Capital Real Estate Trust Inc. and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.
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.