March 8, 2021 Comments (0) Blog, Current Investigations

CNL Healthcare Properties Inc. – Third Party Tender Offer

CNL Healthcare Properties - Third Party Tender Offer - $5.25/Share, featured by Top Securities Fraud Attorneys, The White Law Group

Concerned about investment losses in CNL Healthcare Properties? 

Have you suffered losses investing in CNL Healthcare Properties? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.  

According to its website, CNL Healthcare Properties is a non-traded real estate investment trust (REIT) that “seeks to provide income and growth with a strategic focus on the seniors housing and healthcare sectors.”  

On September 24, 2021 the company announced it has obtained a new $150 million senior unsecured term loan A that is co-terminus with the company’s credit facility due May 2024 (subject to one 12-month extension), which includes a $250 million senior unsecured revolver and a $265 million senior unsecured term loan A. Proceeds are said to be earmarked to repay existing debt.  

 “Liquidation Opportunity” for CNL Healthcare Properties, Inc.  

Comrit Investments 1 LP reportedly extended a third-party tender offer in February to purchase 8.9 million shares of the REIT from investors for $4.66 per share. This may suggest losses for investors as the original purchase price was $10 per share. This offer may have been tempting to some investors as the REIT reportedly suspended its stock redemption plan in July 2018.  

This is not the first time Comrit and its affiliates have offered to buy shares of CNL. The company and its affiliates now own 2.7 million shares of CNL Healthcare common stock, or approximately 1.6 percent of the outstanding shares as of November 11, 2021. 

Net Asset Value Declines & Coronavirus Troubles  

On March 12, 2021, the board of CNL Healthcare Properties Inc. declared a new net asset value per share of $7.38 for the company’s common stock as of December 31, 2020. There was a 4.7 percent decline in the appraised value of the company’s 71 assets when compared to the appraised values for the prior year’s NAV, according to filings with the SEC 

In May 2020 we reported that the company had seven coronavirus related resident fatalities across its 71 senior housing community properties, according to Fact Right, an alternative investment due diligence firm.    

The REIT reportedly noted at the time that there were 34 confirmed cases among residents and staff members in 11 different properties located in 9 different states.  CNL Healthcare has approximately 7,000 residents and 5,000 community-level staff. The company also advised that the current market conditions would likely delay the timeline of its ability to execute any transactions to provide liquidity to shareholders.  

Recovery of Investment Losses 

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like CNL Healthcare Properties, are considerably more complex and involve a high degree of risk. Unfortunately, many investors were not made adequately aware of the risks and liquidity problems associated with REITs.  

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to these investors.  

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure 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.  

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.  

If you have invested in CNL Healthcare Properties 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.  

For more information on the firm’s investigation, please see:  

CNL Healthcare Properties Decrease in Net Asset Value  

Recovery of CNL REIT Losses  

Did your Financial Advisor Recommend a Non-Traded REIT? 

 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, please visit www.whitesecuritieslaw.com 

   

  

  

  

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