CNL Healthcare Properties Tender Offer Price Suggests Losses for Investors

CNL Healthcare Properties Inc. – Third Party Tender Offer

CNL Healthcare Properties Inc. Illiquid Investment, featured by top attorneys, The White Law Group

Recovery of Investment Losses involving CNL Healthcare Properties  

The White Law Group continues to investigate potential claims involving broker dealers who may have improperly recommended non-traded REITs such as CNL Healthcare Properties to investors.  The White Law Group may be able to help you to recover financial losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.  

According to its website, CNL Healthcare Properties is a non-traded real estate investment trust (REIT) that “seeks to provide income and growth with a strategic focus on the seniors housing and healthcare sectors.”  

Third Party Tender Offer for CNL Healthcare Properties, Inc. Shareholders 

This week Comrit Investments has reportedly extended a third-party tender offer to purchase shares of the REIT from investors for $4.50 per share. This may suggest losses for investors as the original purchase price was $10 per share. The REIT reportedly suspended its stock redemption plan in July 2018.  Unfortunately, many investors were not made adequately aware of the risks and liquidity problems associated with REITs. 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. 

 Decline in Net Asset Value  

On March 12, 2021, the board of CNL Healthcare Properties Inc. declared a new net asset value per share of $7.38 for the company’s common stock as of December 31, 2020. There was a 4.7 percent decline in the appraised value of the company’s 71 assets when compared to the appraised values for the prior year’s NAV, according to filings with the SEC

In May 2020 we reported that the company had seven coronavirus related resident fatalities across its 71 senior housing community properties. The company also advised that the current market conditions would likely delay the timeline of its ability to execute on any transactions to provide liquidity to shareholders.  

Filing a Complaint against your Brokerage Firm 

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended CNL non-traded REITs to investors.  

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 are concerned about your investment in CNL Healthcare Properties and would like to speak to a securities attorney, please call The White Law Group at 1-888-637-5510 for a free consultation.  

For more information on the firm’s investigation, please see:  

CNL Healthcare Properties Decrease in Net Asset Value 
Recovery of CNL REIT Losses 
Did your Financial Advisor Recommend a Non-Traded REIT? 

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 Seattle, Washington.  

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