July 17, 2018 Comments (0) Blog, Current Investigations

CNL Healthcare Properties Inc. – Third Party Tender Offer

CNL Healthcare Properties

Investigating Claims involving CNL Healthcare Properties

Did you lose money investing in CNL Healthcare Properties at the advice of you investment advisor? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses.

CNL Healthcare Properties is a non-traded real estate investment trust (REIT) that invests in the seniors housing and healthcare markets sponsored by CNL. The REIT launched in 2011 and made its first investment in early 2012.

According to SEC Filings, two private real estate investment firms have launched an unsolicited tender offer to purchase nearly 8.8 million shares of CNL Healthcare Properties Inc. common stock for $7.50 each. Unless amended, the offer will expire at 9:00 pm PST on August 31, 2018. The tender offer price is 27.3 percent lower than the REIT’s NAV per share of $10.32 as of December 31, 2017.

Everest REIT Investors I LLC and Everest REIT Investors III LLC currently own 20,532 shares of CNL Healthcare, and if all shares in the current offer are tendered, will pay approximately $65.6 million and will own roughly 5 percent of the outstanding shares.

The trouble with alternative investment products, like CNL Healthcare Properties, is that they involve a high degree of risk. They are also typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

Securities Investigation

The White Law Group continues to investigate the liability that brokerage firms may have for unsuitably recommending private placements like CNL Healthcare Properties to investors.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

If you have suffered investment losses as a result of your purchase of CNL Healthcare Properties or another CNL private placement investment, please contact The White Law Group at 1-888-637-5510 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 Vero Beach, Florida. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.