CNL Lifestyle Properties Inc. – Securities Investigation
The White Law Group is investigating potential claims involving broker-dealers who may have unsuitably recommended CNL Lifestyle Properties to investors.
CNL Lifestyle Properties is a real estate investment trust (REIT) that invests in “income-producing” properties with a focus on lifestyle-related industries.
The company plans to file its articles of dissolution, effective December 31, 2017, at which time the company will be legally dissolved.
The final distribution will be the last distribution made relating to the plan of dissolution that was approved by stockholders in March 2017.
The board of CNL Lifestyle Properties, a publicly registered non-traded real estate investment trust, has declared a final cash distribution of nearly $53 million, which is approximately $0.16 per share to stockholders of record as of December 8, 2017. The distribution will be paid on or around December 15, 2017.
CNL Lifestyle Properties shares originally sold for $10.00 each. After the final distribution is paid, stockholders will have received total liquidating distributions of approximately $2.33 per share.
The Risks of Non-traded REITs
The trouble with non-traded real estate investment trusts (REITs) like CNL Lifestyle Properties, is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITs are more complex. They are better suited for investors that can afford to risk the total loss of their investment.
Brokers often earn extremely high sales commission selling non-traded REITs, sometimes as high as 15%. Unfortunately, the high sales commissions associated with non-traded REITs often provides some broker dealers with enough incentive to overlook suitability requirements.
Brokers are required to perform adequate due diligence on any investment they recommend. It’s important to ensure that all recommendations are suitable for the investor and are in line with the clients risk tolerance, age, net worth, and investment experience.
If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.
The Financial Industry Regulatory Authority (FINRA ) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
Have you suffered losses investing in CNL Lifestyle Properties or another non-traded REIT? The White Law Group may be able to help you. Please contact 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 Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.