Seeking Alpha

Soreide Law Group's  Instablog

Soreide Law Group
Send Message
Soreide Law Group, PLLC, is a securities litigation firm that is committed to helping victims recover financial losses due to fraudulent or negligent conduct on behalf of stock brokers or financial advisors. We are able to represent investors nationwide in the handling of their securities... More
My company:
Soreide Law Group PLLC
My blog:
Securities Lawyer Blog
  • Soreide Law Group Is Investigating The Following Tenant-In-Common Or “TIC” Investments 0 comments
    Feb 7, 2013 9:38 AM

    Many investors bought the following TICs at the recommendation of a stock broker or financial advisor. These investments are in fact securities and are subject to the same set of securities laws as any stock and bond. Many investors purchased TICs for the purported tax savings. A TIC investment is a creative way to finance a real estate transaction that results in investors acquiring significantly more real estate than they needed to accomplish their 1031 like kind exchange.

    Securities Lawyer, Lars Soreide, warns investors, "One of the errors investors make in TIC cases is to assume that the unit value of the investment equals the property value divided by the units." During the litigation, "many of these cases bog down in property valuation when in reality the issue in not the property value but the investment value, which is next to worthless even if the property has residual value. Think of this way, who would buy a unit in this investment given that the purchaser would have to take on 150% on additional debt, give up all property rights to become a tenant in common that is worthless as collateral and cannot be turned into cash? Given the structure of ownership with loans with covenants signed by the sponsor and cross collateralized usually, property value is secondary in these cases."

    The Financial Industry Regulatory Authority or "FINRA" which is a nationwide organization is the forum where most all of these TIC cases have to be heard because they are sold by a stock broker or financial advisor. During a FINRA arbitration, "often Respondents/Defendants put on an appraiser to prove the property value, but there is an objection on relevance of this testimony because the appraiser does not opine on the market value of the security on the notional value of the unit which is usually not much at all if anything," says Soreide. It is "critical to obtain the principal loan documents and assumption agreements to ascertain how encumbered and how much real estate you actually own."

    Many of the TICs that we bring suit over have buildings that are fully operational and cash flow positive. The defense that is put on by the brokers is that the value of the property has gone up or remained the same. That is a moot point because it isn't the value of the property that matters but rather the value of the TIC security that was sold in the secondary market.

    The following is a list of TIC investments that were sold by stock brokers:

    ArciTerra Strategic Retail -

    ArciTerra Strategic Retail - Forum Center

    Bluerock Mesa Ridge apartments

    Capital Square Management - Riverwood Corporate Center II

    Ford Investment Properties

    Inland Chicagoland Multifamily

    Inland PNS Grocery DST

    Inland National Net Lease Portfolio II

    KBR Baron's Cove

    Nelson Brothers College Terrace

    PASSCO - Legends at Wolfchase

    PASSCO Broad River

    PASSCO Enclave at Rivergate

    Principle Equity National Oilwell Varco
    Rainier Exchange Portfolio I,
    Rancon Medical and Educational Center
    REVA - Raleigh RTP,

    REVA HR RFMD DST
    Salok TN, LLC

    TNP 121 S. Martin Luther Blvd.

    If you purchased any Tenant-In-Common or TIC investment from a stock broker or financial advisor call Soreide Law Group at (888) 760-6552 or visit http://www.securitieslawyer.com . Free consultation representing TIC investors nationwide.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Soreide Law Group's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.