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CNL Healthcare Properties – Investment Losses

Aug. 05, 2020 12:13 PM ET
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Securities attorney

Seeking Alpha Analyst Since 2011

The White Law Group is a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. As such, we believe that part of our role as attorney is to offer a supportive environment for our clients and to provide advice and support as we attempt to recover these investment losses. Dedicated to the representation of investors in claims against their financial professional or brokerage firm, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions. For more information about The White Law Group call our Chicago office at 312-238-9650 or visit us on the web at http://www.whitesecuritieslaw.com.


  • Third Party Tender Offer Price and Decrease in NAV Suggests Losses for Investors.

CNL Healthcare Properties – Investment Losses

The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended CNL Healthcare Properties to investors. The firm has represented numerous investors in claims against their brokerage firms for recommending non-traded REITs.

CNL Healthcare Properties, a non-traded real estate investment trust (REIT), is focused on the seniors housing and healthcare sectors.

According to reports this week, Comrit Investments 1 LP, a Tel Aviv-based investment fund, has extended an unsolicited tender offer to purchase up to 9 million shares of CNL Healthcare Properties Inc. for $4.66 per share. This may indicate losses for investors.

Shares of CNL Healthcare were originally sold for $10 per share. As of December 31, 2019, the company’s estimated Per Share Net Asset Value is $7.81 per share, which reflects a $2.00 per share special distribution paid in May 2019 and $0.02 adjustments.

Aside from a special distribution made to investors last May, there reportedly have been no announced liquidity plans. The company reportedly suspended its stock redemption plan indefinitely in July 2018 when it began to consider strategic alternatives.

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like CNL Healthcare Properties, are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.

If you have invested in CNL Healthcare Properties and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, please visit www.whitesecuritieslaw.com.

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

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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