Secondary Sales price of Black Creek Fund (now known as Ares Real Estate Income Trust) may indicate losses for investors. 

Are you concerned about your investment in Black Creek Diversified Property Fund Inc.? The non-traded REIT recently changed its name to Ares Real Estate Income Trust, according to filings with the SEC.  Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs may have understated or misrepresented the risks and liquidity problems. 

According to Bloomberg, Black Creek is an externally managed real estate investment trust, or REIT is not listed on any exchange. As of October 31, 2021, all share classes were valued at nearly $7.93, according to filings with the SEC. 

Illiquid Investment 

According to Central Trade & Transfer, a secondary market website, shares of Black Creek Diversified Property Fund Inc. (Ares Real Estate Income Trust) were recently listed for just $7.00 per share. The original offering price was $10.00 per share. 

Alternative investments, such as non-traded REITs often have high fees and commissions, which could be a motivating factor for unscrupulous financial advisors to sell the REIT regardless of whether the investment is in line with the client’s investment objectives and profile.  Moreover, the total commissions and expenses make it difficult for the REIT to perform in line with the market. Further, since they aren’t traded on an exchange, they are illiquid and it is often difficult to find a buyer when the investor is ready to sell. 

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance. 

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 arbitration. 

Free Consultation with a Securities Attorney 

If you invested in a Black Creek Diversified Property Fund Inc. and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 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 Seattle, Washington. 

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.