Investors Summit Healthcare REIT, Inc. (“Summit”) may have FINRA arbitration claims, if their investment was recommended by a financial advisor who lacked a reasonable basis for the recommendation, or if the nature of the investment was misrepresented by the stockbroker or advisor.
Headquartered in Lake Forest, CA, Summit is structured as a Maryland corporation that qualifies as a real estate investment trust (“REIT”) for tax purposes. Formed in 2004, Summit was formerly known as Cornerstone Core Properties REIT, Inc. Following a strategic repositioning of the Company’s property portfolio to focus on healthcare real estate and related assets, the name change was formally adopted in October 2013.
Investors who purchased shares in Summit at the initial offering acquired shares at $8.00 per share, and while it currently has an estimated net asset value (“NAV”) of $2.82 per share, shares of Summit have reportedly traded on the limited secondary market for between $1.23 and $1.30 per share. Recently, CMG Partners LLC, a known purchaser of distressed nontraded securities, sent Summit investors letters offering to purchase shares for $0.60 per share.