Nontraded REITs: Should They Be Avoided?

Reno, NV Attorney serving Nevada & California


A recurring trend has appeared over the past seven years among some of the world’s largest nontraded real estate investment trusts, or nontraded REITs.  The pattern at hand has been illustrated by the dramatic financial losses of eight of the planet’s largest nontraded REITs, which have lost 37% of their equity value in less than a decade.

CNL Lifestyle Properties Inc. was the latest one to experience this financial trouble, suffering a decrease from $10 to $7.31 in its share price.  Dividend Capital Total Realty Trust Inc. also recently experienced a similar drop in its share value.  These and the other six REITs make up a large portion of the “direct participation program” and nontraded-REIT investment industry, yet hopefully other REITs will not follow their lead.

If you have been affected by these declines in financial values, or feel that you were not made aware of the risk involved with these funds when they were sold to you, you may be able to set your financial situation straight with the appropriate legal assistance.  Contact Securities and Stock Fraud Attorney Thomas C. Bradley today to discover how he may be able to assist you.