Securities fraud attorneys are investigating potential claims on behalf of investors who purchased the Healthcare Trust of America REIT and suffered significant losses as a result of their investment. In many cases, brokers improperly recommended the purchase of Healthcare Trust of America to investors for which the REIT was unsuitable, and marketed it as safe and secure despite its risky nature.
Healthcare Trust of America is a non-traded Real Estate Investment Trust (REIT). According to stock fraud lawyers, REITs typically carry a high commission which motivates brokers to make the recommendation to their clients despite the investment’s unsuitability. The commission on a non-traded REIT is often as high as 15 percent. Non-traded REITs, like Healthcare Trust of America, carry a relatively high dividend or high interest, making them attractive to investors. However, non-traded REITs are inherently risky and illiquid, which limits access of funds to investors.
Healthcare Trust of America is, according to its website, a “fully integrated, self-administered, self-managed real estate investment trust.” The REIT has invested around $2.5 billion, since it was formed in 2006, in real estate projects. According to a recent SEC filing, the REIT is seeking a $10.10 per share IPO price. However, it is possible that Healthcare Trust of America’s initial IPO share price will be lower than that, in light of what recently happened with Inland Western REIT’s IPO, in which the actual share price was considerably lower than the anticipated share price.
Recently there have been many non-traded REITs under investigation. Some of the non-traded REITs being investigated by the securities fraud attorneys at CJ Gray are Inland Western, Inland American, KBS REIT, Cornerstone Healthcare REIT and Behringer Harvard REIT.
If you suffered losses as a result of an unsuitable recommendation of Healthcare Trust of America or another non-traded REIT, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.