According to the Investment News, investors in Cornerstone Core Properties REIT were told in March 2012 that shares had plunged 72% in value, from $8 to $2.25. This reduction in estimated value is attributed to the recent global economic downturn which has negatively impacted the small business tenant base, according to the company, which says occupancy rates are down to 69% compared to 92% at the end of 2008.
FactRight, a due diligence firm that covers managers of alternative investments recommended last year that broker dealers pull Cornerstone Core Properties REIT from their sales platforms. Pacific Cornerstone Capital, Inc was the sponsoring broker-dealer. Pacific Cornerstone also sold another troubled product, CIP Leveraged Fund Advisors, see our prior blog post.
Cornerstone Core Properties REIT is following in the footsteps of other REITs who have seen their values plummet recently. Behringer Harvard Short-Term Opportunity Fund I, LP went from $6.48 to $.40. Behringer Harvard Opportunity REIT I, Inc fall to $4.12 from $7.66 a year earlier. Other REITs like Cole Credit Property Trust II, Lerner Apple REITs, Hines REIT, Inland American, KBS, Inland Western Retail Real Estate (now Retail Properties of America) and the Wells and Wells Timberland REITs have faced similar issues resulting in reduced estimated values and/or termination of distributions.
Many REITs were sold with the promise of regular and dependable distributions of income. In many cases these distributions were funded with debt or a return of capital and were not really distributions of income. Investors who relied on these representations when making the decision to invest may have legal rights entitling them to the recovery of a portion or all of their losses.
Robert H. Rex, Esq. been helping investors recover investment losses for over twenty years. We represent clients nationwide.
If you have suffered losses in a REIT investment or have any questions about your brokerage account , please do not hesitate to contact us at 561 391 1900.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.