CNL Healthcare Properties – Investment Loss?

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Levin Papantonio Rafferty is currently investigating claims on behalf of investors who were recommended and purchased shares in CNL Healthcare Properties (CNL) by their financial advisor. CNL is a non-traded real estate investment trust (REIT) that focuses on senior housing and healthcare properties. The Company portfolio consists of interests in over seventy properties, including independent and assisted living facilities. Recently, CNL has suffered losses and a decline in value due largely to the COVID-19 Pandemic and rising operational costs. The Company, by its own nature of focusing on senior housing, was exposed to increased risk.

In December 2022, the Company announced its estimated net asset value (NAV) per share of $6.92, a sharp decline from $7.37 the previous year. In February of 2023, Comrit Investments 1 LP extended a third-party tender offer to purchase 8.9 million shares at $4.64 a share. The original purchase price was $10.00 a share. In March of the same year, Comrit lowered its offering price to $4.36 a share.

Due to the complex and speculative nature of REITs, they are often not appropriate for most investors. Often, this kind of investment can result in a partial or total loss of capital. 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 appropriate for the investor’s age, health, 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. It is the duty of the broker to recommend only appropriate investments that fit with the customer’s goals and risk tolerance and to disclose all risks associated with a particular investment. Furthermore, the brokerage firm has a duty to implement a system of oversight to ensure that the customers’ interests are put first.

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 Levin Papantonio Rafferty (800) 277-1193 for a free consultation or submit your case summary on this page.