Dividend Capital REIT and Seven Other Non-traded REITs Suffer Significant Losses

by InvestorLawyers on September 10, 2012

in Arbitration,FINRA,Private Placements,Securities Fraud,Suitability

Securities arbitration lawyers are currently investigating claims on behalf of investors who suffered significant losses as a result of their investment in eight of the biggest non-traded REITs, including Dividend Capital Total Realty Trust Inc. According to a recent analysis, over the last seven years, eight of the biggest REITs have lost 37 percent of their equity value, or around $11.3 billion.

Dividend Capital REIT and Seven Other Non-Traded REITs Suffer Significant Losses

In July, Dividend Capital Total Realty Trust Inc. revised its per share value to $6.69, down from its March value of $8.45 per share. The Dividend Capital REIT raised $1.8 billion at a $10 per share price. Dividend Capital REIT president, Guy Arnold, failed to return calls seeking comment on the REIT’s performance. For more information about the Dividend Capital REIT, see the previous blog post, “Dividend Capital REIT Restructuring Could be a Sign of Trouble.”

Another non-traded REIT, CNL Lifestyle Properties Inc., experienced a share price drop to $7.31. The CNL Lifestyle Properties REIT raised $2.7 billion at a $10 per share price, according to investment fraud lawyers.

These eight REITs each raised more than $1 billion and the equity declines they experienced amounted to more than 20 percent of their value. These investments account for a significant portion of the non-traded REIT and “direct participation program.” This program will, reportedly, raise from $9 billion to $10 billion this year from investors.

Industry observers say that near the end of 2007, during the commercial real estate market surge, some non-traded REITs were sold to clients by registered representatives characterized as bond alternatives. According to securities arbitration lawyers, while some of these investments were sold appropriately, many were not.

If you suffered significant losses as a result of your investment in the Dividend Capital REIT, or another non-traded REIT, you may be able to recover your losses through FINRA arbitration. To find out more about your legal rights and options, contact an investment fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

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