Category Archives: Behringer Harvard REIT

WHAT CAN I DO TO SELL MY BEHRINGER HARVARD REAL ESTATE INVESTMENT TRUST?

Many investors in the Behringer Harvard Real Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my Behringer Harvard REIT? This is due to the fact that Behringer Harvard Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as Behringer Harvard decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs’ performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors – a universal sign of ruinous events to come for REIT investors.

Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their Behringer Harvard REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:

•· REIT Secondary Exchange

•· SecondMarket

•· Pacific Partnership Group

•· Mackenzie Patterson Fuller LP

•· Central Trade and Transfer

•· Lapis Advisors LP

Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.

The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REITs as yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. When any Behringer Harvard REIT investor calls our office, we will make a customer specific suitability determination after we learn the “essential facts” concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability determination, and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!

Have you suffered losses resulting from an investment in Behringer Harvard Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold Behringer Harvard Real Estate Investment Trusts to investors.

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

MASSACHUSETTS LAWSUIT AGAINST LPL FINANCIAL FOR REIT SALES PAVES THE WAY FOR SUCCESSFUL INVESTOR CLAIMS

A Massachusetts lawsuit against LPL Financial will surely strengthen investors’ arbitration claims for losses resulting from illegal sales practices involving real estate investment trusts (REITs). Massachusetts Secretary of the Commonwealth William Galvin charged LPL with failure to supervise registered representatives who sold the non-traded REITs in violation of both state limitations and the company’s guidelines. The Massachusetts securities division also charged LPL with dishonest and unethical business practices. Massachusetts charges stem from the sale of $28 million of non-traded REITs to almost 600 clients from 2006 to 2009. Of the REITs listed in the complaint, the highest sales were for Inland American Real Estate Trust, the largest non-traded REIT, with $11.2 billion in real estate assets. Robert Pearce, a 30-year securities and commodities attorney in Boca Raton, FL, believes that Massachusetts’ action will certainly generate a flood of cases against LPL. Mr. Pearce added that the Massachusetts complaint will serve as a roadmap for investors and their attorneys to follow when asserting their claims.

REITs invest in a diversified set of income producing real estate properties and mortgages, and they must distribute 90 percent of net earnings to investors. REITs allow investors to partake in real estate investing without directly owning property, which may lock up large amounts of money for long periods of time. The most popular REITs are publicly traded on a stock exchange such as the New York Stock Exchange (NYSE) – they are relatively transparent in their finances and operations and are covered extensively by investment analysts. Non-traded REITs are not listed or registered with securities regulators and are supposed to be available only to accredited investors – $1 million or more in assets or $200,000.00 in annual income. Non-traded REITs disclose their finances publicly and offer shares to the public, but they do not list their shares on an exchange, which is one of many risk factors associated with them.

In LPL’s case, Massachusetts’ investigation showed significant and widespread issues with LPL’s adherence to product prospectus and state requirements. As a result, Massachusetts is seeking full restitution to clients who were sold REITs allegedly in violation of state and prospectus requirements. The state is also seeking an unspecified administrative fine against LPL. Although LPL set forth stringent requirements for the sale for non-traded REITs, it failed to properly review sales of non-traded REITs. In addition, the securities division was able to uncover similar issues with many other REITs sold by LPL. To counter the possibility of future violations, the firm has changed its policies and procedures, creating a separate complex-products team to review all alternative investments. Regardless of the measures taken by LPL, investors are urged to conduct their own investigation prior to making an investment decision involving non-traded REITs. That way, investors will have a clearer understanding of non-traded REITs, which just might keep them from buying the product from the get-go.

Have you suffered losses in real estate investment trusts sold by LPL Financial? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WAS THE BEHRINGER HARVARD REAL ESTATE INVESTMENT TRUST AN UNSUITABLE INVESTMENT?

Many investors have been calling my office and asking whether Behringer Harvard Real Estate Investment Trust was an unsuitable investment for them. Behringer Harvard Real Estate Investment Trust is a non-traded Real Estate Investment Trust (REIT). For most investors, liquidity, income and risk tolerance are a concern but if you are elderly and retired they are paramount! If you have limited resources and no ability to generate income from other sources to meet your liquidity and income needs then a non-traded REIT is an unsuitable investment. Likewise, if you cannot afford a total risk of loss, then speculative non-traded REITs are unsuitable investments. The suitability problem is compounded when any investors’ portfolio is concentrated in non-traded REIT investments. A rule of thumb is that no more than 10% of anyone’s investment portfolio should be concentrated in real estate investments, including REIT investments, and that percentage should be far less as a person reaches retirement and advances in age, perhaps zero!

Every brokerage firm has the responsibility of “knowing the customer” and making a customer specific “suitability” determination for every investment recommendation. The “Suitability Rule,” Financial Industry Regulatory Authority (FINRA) Rule 2111, requires that a firm or associated person “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.” This is a new rule but it contains the core features of the previous National Association of Securities Dealers (“NASD”) and New York Stock Exchange (“NYSE”) suitability rules and codifies well-settled interpretations of those rules. Brokerage firms and their associated persons have always had the responsibility to make suitable recommendations in light of individuals in stating investment objectives and financial condition, tax status, and other relevant factors. According to FINRA, some non-traded Real Estate Investment Trust investments (“REITs”) aren’t suitable for anyone based on the offering terms, misrepresentations and unreasonable projections by the promoters (see FINRA News Release “FINRA Issues Investor Alert on Public Non-Traded REITs”).

The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REIT investments as the yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. But these products offer little liquidity for investors who at this stage of their life are likely to need to dip into their investment savings to support their lifestyle or for medical and other emergencies. There is no public market, early redemption of shares in REITs is often very limited, and the fees associated with the sales of these products can be high and erode the total return, if they can be sold at all. Further, many of these investments do not truly generate income but make distributions with borrowed money, with newly raised capital, or by a return of principal rather than a return on investment which can stop at any time. Although non-traded REITs may offer some diversification benefits as part of a balanced portfolio, they all have underlying risk characteristics that make them unsuitable for certain investors, particularly the elderly retired investor with limited financial resources.

When any Behringer Harvard Real Estate Investment Trust investor calls our office, we will make a customer specific suitability determination after we learn the “essential facts” concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability and determination and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

INVESTORS NATIONWIDE BEWARE – PUBLIC, NON-LISTED REITS ARE NOT WORTH THE RISK!

For quite some time now, a lack of attractive fixed income yields has created serious issues for many investors, especially seniors. Certificates of deposit (CDs) are paying almost nothing, and interest payments on bonds are on a greater decline than a shopper’s savings account during the holiday season. Therefore, many investors are turning to public, non-listed real estate investment trusts (REITs), which promise attractive quarterly distributions – 6.5% a year with full return of the invested principal. However, investors must realize that public, non-listed REITs have a multitude of risks that most stocks, bonds, and CDs do not, and many investment advisers do not believe that public, non-traded REIT distributions compensate for those risks. Some of the public, non-listed REITs to watch out for are: Apple, Behringer, Pacific Cornerstone, Desert Capital, Inland American, Inland Western, KBS, and Retail Properties of America.

REITs invest in a diversified set of income producing real estate properties and mortgages, and they must distribute 90 percent of net earnings to investors. REITs allow investors to partake in real estate investing without directly owning property, which may lock up large amounts of money for longs periods of time. The most popular REITs are publicly traded on a stock exchange such as the New York Stock Exchange (NYSE) – they are relatively transparent in their finances and operations and are covered extensively by investment analysts. Private REITs are not publicly traded, listed, or registered with securities regulators and are supposed to be available only to accredited investors – $1 million or more in assets or $200,000.00 in annual income. Public, non-listed REITs disclose their finances publicly and offer shares to the public, but they do not list their shares on an exchange, which is one of many risk factor associated with them.

The following are some of the risks associated with investing in public, non-listed REITs:

-High fees: non-listed REITs pay brokers and financial advisers large commissions, oftentimes 10 percent of the amount invested. Numerous REITs also charge investors ongoing management fees, and some of them charge fees when an investor wants to liquidate.

-Share value: more than half of non-listed REITs are sold in $10 per share allotments to investors. After the real estate bubble popped and credit markets fell apart, many REITs lost most of their value. A lack of an efficient secondary market makes it almost impossible to successfully auction off shares to recover some of the lost principal.

-Liquidity: REIT investors usually find that their original investment is locked in for seven to ten years. Also, many REITs refuse share-redemption requests except in emergency cases such as death or disability.

-Distribution cuts: many REITs are not generating enough income to pay distributions owed to shareholders. In order to circumvent this dilemma, REITs are financing payments owed by selling more shares, selling off properties, or cutting dividends.

Regulators have begun to closely scrutinize public, non-listed REITs. In 2009, the Financial Industry Regulatory Authority (FINRA) began to examine how broker-dealers advertised and sold REITs. In fact, FINRA recently ordered David Lerner and Associates (DLA) of Syosset, NY to pay $12 million to investors who were sold shares of Apple REIT. FINRA found that DLA was providing misleading materials to unsophisticated investors nationwide, which included elderly clients.

Have you suffered losses in a public, non-listed real estate investment trust such as David Lerner and Associates’ Apple REIT? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

INVESTORS NATIONWIDE BEWARE – PUBLIC, NON-LISTED REITS ARE NOT WORTH THE RISK!

For quite some time now, a lack of attractive fixed income yields has created serious issues for many investors, especially seniors. Certificates of deposit (CDs) are paying almost nothing, and interest payments on bonds are on a greater decline than a shopper’s savings account during the holiday season. Therefore, many investors are turning to public, non-listed real estate investment trusts (REITs), which promise attractive quarterly distributions – 6.5% a year with full return of the invested principal. However, investors must realize that public, non-listed REITs have a multitude of risks that most stocks, bonds, and CDs do not, and many investment advisers do not believe that public, non-traded REIT distributions compensate for those risks. Some of the public, non-listed REITs to watch out for are: Apple, Behringer, Pacific Cornerstone, Desert Capital, Inland American, Inland Western, KBS, and Retail Properties of America.

REITs invest in a diversified set of income producing real estate properties and mortgages, and they must distribute 90 percent of net earnings to investors. REITs allow investors to partake in real estate investing without directly owning property, which may lock up large amounts of money for longs periods of time. The most popular REITs are publicly traded on a stock exchange such as the New York Stock Exchange (NYSE) – they are relatively transparent in their finances and operations and are covered extensively by investment analysts. Private REITs are not publicly traded, listed, or registered with securities regulators and are supposed to be available only to accredited investors – $1 million or more in assets or $200,000.00 in annual income. Public, non-listed REITs disclose their finances publicly and offer shares to the public, but they do not list their shares on an exchange, which is one of many risk factor associated with them.

The following are some of the risks associated with investing in public, non-listed REITs:

-High fees: non-listed REITs pay brokers and financial advisers large commissions, oftentimes 10 percent of the amount invested. Numerous REITs also charge investors ongoing management fees, and some of them charge fees when an investor wants to liquidate.

-Share value: more than half of non-listed REITs are sold in $10 per share allotments to investors. After the real estate bubble popped and credit markets fell apart, many REITs lost most of their value. A lack of an efficient secondary market makes it almost impossible to successfully auction off shares to recover some of the lost principal.

-Liquidity: REIT investors usually find that their original investment is locked in for seven to ten years. Also, many REITs refuse share-redemption requests except in emergency cases such as death or disability.

-Distribution cuts: many REITs are not generating enough income to pay distributions owed to shareholders. In order to circumvent this dilemma, REITs are financing payments owed by selling more shares, selling off properties, or cutting dividends.

Regulators have begun to closely scrutinize public, non-listed REITs. In 2009, the Financial Industry Regulatory Authority (FINRA) began to examine how broker-dealers advertised and sold REITs. In fact, FINRA recently ordered David Lerner and Associates (DLA) of Syosset, NY to pay $12 million to investors who were sold shares of Apple REIT. FINRA found that DLA was providing misleading materials to unsophisticated investors nationwide, which included elderly clients.

Have you suffered losses in a public, non-listed real estate investment trust such as David Lerner and Associates’ Apple REIT? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

CAN I RECOVER MY BEHRINGER HARVARD REAL ESTATE INVESTMENT TRUST LOSSES?

Many investors in the non-traded Behringer Harvard REIT have inquired about their ability to recover their losses after learning that their fund is no longer valued as much as they were previously led to believe. As a result, many claims are being filed by Behringer Harvard REIT and other REIT investors for misrepresentation, unsuitable recommendations and/or overconcentrations of their investment funds in Behringer Harvard REIT and other REIT investments to recover their REIT losses.

At first blush, one may think that the best claim is against the Behringer Harvard REIT itself and its management but one needs to remember why they first invested. Undoubtedly, the Behringer Harvard REIT and other REIT investments were recommended by your brokerage firm and financial advisor who have a fiduciary duty to not misrepresent or omit to state important facts, perform due diligence on any REIT and first make sure that the investment is suitable at all for any investor and then specifically ensure that the investment is appropriate in light of the investor’s actual age, investment experience, investment objectives, tax and financial condition. If the brokerage firm and its advisor fail in fulfilling any one of these duties under common law and under the FINRA Code of Conduct, investors will have the right to recover their investment losses against them through a FINRA arbitration proceeding and/or court if no arbitration agreement has been executed.

The most common misrepresentation and misleading statement claims that the Behringer Harvard REIT and other REIT investors have been making relate to the risk associated with the non-traded REITs. Many investors have complained that the Behringer Harvard REIT and other REITs were not adequately represented before purchase and that they did not know the real truth about the valuations, performance, prospects, liquidity, or distribution and redemption practices of management relating to their investment. Many elderly investors seeking income were overconcentrated in Behringer Harvard REITs and other REITs because they needed income. Sadly they learned too late that there were no guarantees that distributions would be made. Some REIT investors have just learned that they would no longer be receiving distributions or that the distributions they actually received were derived from loans and not the true cash flow of the REIT. Brokerage firms and their financial advisors were eager to push REIT investments on their clients for the high commissions compared to other products. Unfortunately, many investors are locked in and unable to sell their REIT investments without suffering without selling into deeply discounted secondary market for some other REIT investments. If you are a Behringer Harvard REIT investor with the same complaints, we believe we can help you recover your REIT losses!

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WATCH OUT FLORIDA FIXED INCOME INVESTORS–NON-TRADED REITS ARE BOTH ILLIQUID AND UNSAFE!

Investors are encouraged to be extremely wary of non-traded REITs. Recent developments have shown that non-traded REITs haven’t performed as represented. According to InvestmentNews, “Six notable non-traded REITs on the slide” are:

Behringer Harvard Short-Term Opportunity Fund – down 96%
Cornerstone Core Properties REIT – down 71.88%
Behringer Harvard Opportunity REIT I – down 58.80 %
Behringer Harvard REIT I – down 53.60%
KBS Real Estate Investment Trust Inc. – down 48.40%
Inland Western Retail Real Estate Trust Inc. – down 30.50%.

Susan Fox, age 63, learned that the hard way. She invested 54% of her IRA in two non-traded REITS at the recommendation of her investment advisor, John Potts of Plano, Texas. The first REIT, Inland American Real Estate Trust, has declined 28%. After seeing that REIT decline, she met with Mr. Potts at her home to discuss her concerns. Mr. Potts promptly sold her another non-traded REIT – Cornerstone Core Properties REIT.

Ms. Fox told InvestmentNews: “My recollection was that he deflected talking about Inland. He was talking over my head and said that [Cornerstone] was a better investment with a better, reputable company, and it would pay dividends. He had a lot of paper spread out on the table. He had all the documents ready for me to sign, and I signed them.”

Ms. Fox was recently informed that the Cornerstone Core Properties REIT had been devalued from $8.00 per share down to $2.25 per share – a 72% decline.

Mr. Potts is associated with a broker-dealer named Berthel Fisher & Co. Financial Services, and also with a company called “Pre-Paid Legal,” according to the Financial Industry Regulatory Authority (FINRA).

Cornerstone takes the position that “the recent global economic downturn,” rather than its own mismanagement, is to blame for the 72% decline. Bertel Fisher says it investigated Ms. Fox’s complaint and found it (and Mr. Potts) did nothing wrong. FINRA likewise responded to Ms. Fox’s complaint with a shrug.

Tony Webb, a research economist with the Center for Retirement Research at Boston University, sees things differently. He was quoted as saying that “the level of risk wasn’t appropriate for the client,” adding: “I don’t know the client’s financial situation, but it strikes me, at first glance, of being an inappropriate investment.”

Non-traded REITs have been widely sold to retirement accounts. They are widely sold because the sellers put their own interests ahead of their clients. Non-traded REITs pay high commissions to the seller, but given their illiquidity and risk, they are usually not in the best interest of the purchaser.

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

SEC INVESTIGATES INLAND AMERICAN REAL ESTATE TRUST

Inland American Real Estate Trust Inc. is being investigated by the Securities and Exchange Commission according to that firm’s quarterly report. The SEC’s investigation is reportedly focusing on fees. Inland American is the industry’s largest non-traded real estate investment trust, and has $11.2 billion in real estate assets. Inland American is one of five REITs sponsored by The Inland American Real Estate Group of Companies Inc.

REITs typically pay a high commission-often as much as 15% (which often explains the stockbroker’s motivation in recommending the REIT investment to the investor). Due to the relatively high interest or dividend offered by non-traded REITs, elderly and retirees are often victimized by those misrepresented and unsuitable investment recommendations.

In addition to issues over fees, non-traded REITs have been cited for valuation problems. Over the past year, a number of non-traded REITs have been forced by regulators to stop valuing their REITs at the purchase price (which was false and misleading to investors) and disclose to investors an estimated true value. This has resulted in a wave of sharp decreases from previously reported values that have shocked investors. A related REIT, Retail Properties of America Inc., formerly known as Inland Western Retail Real Estate Trust Inc., recently had an initial public offering at $3.20 per share when just last June, that REIT’s management said its estimated value was $6.95 per share.

InvestmentNews recently reported that the following non-traded REITs had suffered steep losses, as follows:

Behringer Harvard Short-Term Opportunity Fund – down 96%

Cornerstone Core Properties REIT – down 71.88%

Behringer Harvard Opportunity REIT I – down 58.80 %

Behringer Harvard REIT I – down 53.60%

KBS Real Estate Investment Trust Inc. – down 48.40%

Inland Western Retail Real Estate Trust Inc. – down 30.50%.

The Financial Industry Regulatory Authority (FINRA) is also investigating the non-traded REIT industry, and has commenced enforcement actions against some broker-dealer managers like Pacific Cornerstone Capital.

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Mr. Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. Our law firm is devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.