Did you lose money investing in CNL Healthcare Properties?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing in CNL Healthcare Properties, a publicly registered non-traded real estate investment trust, at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the broker-dealer and/or registered representative that recommended the investment.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
UPDATE 9/24/2020: Comrit Investments 1 LP, a Tel Aviv-based investment fund, has completed its unsolicited tender offer to purchase up to 9 million shares of CNL Healthcare Properties. CNL Healthcare Properties had a net asset value per share of $7.81 as of December 31, 2019, and Comrit purchased nearly 340,000 shares for $4.66 each. The REIT’s previous NAV per share was $7.99 as of December 31, 2018 and reflects a $2.00 per share special distribution paid in May 2019 and $0.02 adjustments relating to closing costs from certain asset sales. Shares originally sold for $10.00 each. Prior to the tender offer, Comrit and its affiliates did not own any shares of the REIT. CNL Healthcare Properties closed its offering in September 2015 after raising more than $1.7 billion in investor equity.
UPDATE 8/7/2020: Comrit Investments 1 LP, a Tel Aviv-based investment fund, has launched an unsolicited tender offer to purchase up to 9 million shares of CNL Healthcare Properties for $4.66 per share. The offer expires on September 18, 2020. CNL Healthcare Properties had a net asset value per share of $7.81 as of December 31, 2019.
UPDATE 5/7/2020: CNL Healthcare Properties has announced a revised Net Asset Value of $7.81 per share as of Dec. 31, 2019. On April 27, 2020, CNL Healthcare Properties reported that as of April 24, 2020, there were seven coronavirus related resident fatalities across its 71 senior housing community properties, according to Fact Right, an alternative investment due diligence firm. CNL Healthcare Properties reportedly further noted that there were 34 confirmed cases among residents and staff members in 11 different properties located in 9 different states. CNL Healthcare Properties has approximately 7,000 residents and 5,000 community-level staff.
UPDATE 4/6/2020: The board of CNL Healthcare Properties, a publicly registered non-traded real estate investment trust, approved an estimated net asset value per share of $7.81, as of December 31, 2019. CNL Healthcare Properties’ previous NAV per share was $7.99 as of December 31, 2018 and reflects a $2.00 per share special distribution paid last May and $0.02 adjustments relating to closing costs from certain asset sales. Shares originally sold for $10.00 each.
UPDATE 9/7/2019: MacKenzie Realty Capital, a publicly registered non-traded business development company, has launched an unsolicited tender offer to purchase up to one million shares of CNL Healthcare Properties, a publicly registered non-traded real estate investment trust, for $5.25 per share. The tender offer expires on September 30, 2019.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
What are Real Estate Investment Trusts (REIT)?
A Real Estate Investment Trust (“REIT”) is a complex investment that is generally only suitable for sophisticated high-net worth investors, and then only in certain circumstances. A REIT is an entity that owns, and may also manage, income producing real estate. REITs pool capital from multiple investors and use it to purchase properties, similar to mutual funds and other pooled investment vehicles.
A Real Estate Investment Trust can be offered in several different forms. A Public Exchange Listed REIT is registered with the U.S. Securities and Exchange Commission (“SEC”) and is publicly traded on a national securities exchange. A Public Non-Listed REIT is registered with the SEC, but does not trade on a major securities exchange. Finally, a Private REIT, also known as a private-placement REIT, is not registered with the SEC and does not trade on a national securities exchange.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
CNL Healthcare Properties Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as CNL Healthcare Properties, and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as CNL Healthcare Properties, or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in CNL Healthcare Properties and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.