Many investors have suffered losses and received lowball offers on their Berhinger Harvard REIT I and Behringer Harvard Short-Term Opportunity Fund I investments. Investors facing this problem may be able to recover their losses with a securities arbitration lawyer. Statements made on the Behringer Harvard Holdings LLC website stated that unsolicited lowball offers have been issued for these two investments. The offers were for less than 5 percent of the shares outstanding.
While the offers are likely less than the current market value of the investments, the major problem is the limited market for the sale of the funds. The Behringer Harvard REIT I Inc. is a non-traded real estate investment trust. A non-traded REIT is not traded on an exchange, unlike a traded REIT. Non-traded REIT investors may only be able to sell on the secondary market, which is notorious for deal seekers who only want to pay “bargain basement” prices.
If it can be proved that the broker or dealer that recommended the investment did so unsuitably, investors may be able to recover losses using a securities arbitration lawyer. Brokers, and brokerage firms, have a fiduciary duty to their clients. They must research an investment prior to making a recommendation to an investor to establish that the investment is suitable. It must be appropriate for each individual investor, taking into consideration the investor’s investment objectives, investment experience, net worth and age.
Furthermore, the risks and liquidity of Behringer Harvard may have been misrepresented, enticing unsophisticated investors to purchase the investments based on the promised income. In reality, Behringer Harvard was sold by firms because of the large commission it paid to the firm upon completion of the sale.
Luckily, investors can hold brokers and firms responsible for their actions with a securities fraud attorney through FINRA arbitration. If you purchased Berhinger Harvard REIT I or Behringer Harvard Short-Term Opportunity Fund I based on an unsuitable recommendation, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a securities fraud attorney at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.