Now Is The Time To Explore Your Legal Options

Investors in Lodging Fund REIT III face growing concerns as the non-traded real estate investment trust has failed to pay distributions to common stockholders for nearly two years amidst late SEC filings and asset sales at a loss. The law firm Shepherd Smith Edwards and Kantas is offering free consultations to evaluate whether broker-dealers unsuitably recommended this illiquid investment to clients.

Next month, it will be two years since Lodging Fund REIT III paid a distribution to common stockholders. According to CFO Sam Montgomery, who spoke with AltsWire in May, this is supposedly a matter of prudent capital management. However, for investors of this hotel real estate investment trust (REIT), there may be cause for concern.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is offering free initial case consultations to Lodging Fund REIT III investors who were sold their shares by brokers. We want to help you explore your legal options.

What Is Lodging Fund REIT III?

• A non-traded REIT that focuses on different kinds of hotels—including extended stay and limited-service properties in the Texas-North Dakota and Appalachian-Rocky Mountain region.
• It is run by Legendary Capital.
• Launched in 2018, accredited investors were sold Lodging Fund REIT III shares for $10/share.
• More than $100M was raised via private placements.
• This is an illiquid investment that could easily be affected by interest rates and other factors that may impact hospitality and travel industries.

What Are Other Problems Lodging Fund REIT III Has Faced?

• The non-traded REIT III submitted its 2025 yearly report late. This is not the first time this company has submitted a late filing.
• In 2023, the US Securities and Exchange Commission (SEC) fined Corey Maple for his involvement in the allegedly improper reimbursement of about $5M in overhead costs from Lodging Fund REIT II to an external adviser. The adviser entity ended up disgorging $4.8M. The SEC approved a plan last year to distribute the money to investors that were impacted.
• Last December, Legendary Capital sold two of the non-traded REIT’s hotel assets for less than what they paid.

Why Are Brokers Under Scrutiny Over Selling Lodging Fund REIT III to Investors?

• At Shepherd Smith Edwards and Kantas, we are investigating whether broker-dealers unsuitably recommended this non-traded REIT to customers, including retail investors and retirees.
• There are questions as to whether due diligence failures were committed when financial advisors looked into whether this was a solid investment for clients.
• Brokers earn high commissions and fees for promoting non-traded REITs. It is possible some financial advisors may have disregarded investors’ best interests when they sold this non-traded REIT to them.

How Can Shepherd Smith Edwards and Kantas Help You As a Lodging Fund REIT III Investor?

• During your no-obligation case assessment, we can evaluate whether your non-traded REIT losses involved any type of broker misconduct or negligence that warrants you suing your brokerage firm.
• If we decide to work together, we will offer you robust securities representation and personalized attention, along with more than a century’s worth of collective experience in securities law and the securities industry.
• We are seasoned non-traded REIT recovery attorneys who have won arbitration awards and negotiated settlements for retail customers, retirees, accredited investors, and high-net-worth investors.

Ask for your free case consultation today:

Call (800) 259-9010 or contact us online today to speak with one of our trusted non-traded real estate investment trust recovery attorneys.