Lightstone Value Plus REIT III Suspends Redemptions
Have you suffered investment losses in Lightstone Value Plus REIT III? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Lightstone Value Plus REIT III, a non-traded real estate investment trust, reportedly engaging in investing and owning commercial and residential real estate properties.
The boards of Lightstone Real Estate Income Trust and Lightstone Value Plus Real Estate Investment Trust III terminated their respective initial public offerings in 2017, according to filings with the Securities and Exchange Commission. The companies did not disclose the reason for the terminations.
According to a recent filing with the SEC, on March 19, 2020, the Board of Directors amended the share repurchase program to remove stockholder notice requirements and also approved the suspension of all redemptions effective immediately.
The Problem with Non-traded REITs – *updated* Sept. 2021
Liquidity can be a problem for investors of non-traded REITs. Investors looking to sell a non-traded REIT investment often have difficulty finding a buyer, and can suffer significant losses on the sale.
As of February 2021, shares of Lightstone Value Plus REIT III were listed for sale for just $2.85 per share on Central Trade & Transfer, a secondary market place for non-traded REITs and other alternative investments. This may indicate losses for investors as the original offering price was $10.00 per share.
Non-traded REITs, like Lightstone, involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds. These types of investments are more complex, lack liquidity and therefore better suited for sophisticated and institutional investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of the investor’s age, risk tolerance, 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.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Lightstone Value Plus REIT III, 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. For more information on the firm, please visit www.WhiteSecuritiesLaw.com.