Non-Traded REIT Fraud Attorneys

Shepherd Smith Edwards and Kantas Is Continuing To Investigate Watermark Lodging Trust REIT Losses. Our Non-Traded REIT Fraud Attorneys Are Helping Investors Evaluate What Happened

Shepherd Smith Edwards and Kantas (investorlawyers.com) is offering free, no obligation, initial case consultations to those who lost money in Watermark Lodging Trust. Formerly known as Carey Watermark REITs (real estate investment trusts), this non-traded REIT has caused investors, particularly those who originally paid $10/share, significant losses now that there has been a huge drop in value, possibly as high as 60% to even 70%. Unfortunately, the options for reselling them, like many non-traded REITs, are very limited.

Always a high-risk investment, Watermark Lodging Trust charged high commissions of 10% or greater especially in its previous iterations of Carey Watermark Investors 1 and Carey Watermark Investors 2 prior to their merger to become this Watermark REIT. Dealer-manager fees and other offering costs were also charged, which meant that, allegedly, less than about 87% of an investor’s money was actually put into the non-traded REIT.

Originally a blind pool offering, Watermark Lodging Trust lacked any properties or net income or even financing sources when investors started buying. This likely means that financial advisors may not have had a way to properly evaluate this investment. Not only that, but distributions may have gone beyond the REITs earnings at the time of the startup period. Also, some distributions allegedly were a return of investors’ capital.

At some point hotel properties came into Watermark Lodging Trust REIT but those were all shuttered during the start of the COVID-19 pandemic. Distributions for its common stock and redemptions were then suspended.

Now, there is growing concern that brokers and investment advisors may have unsuitably recommended Watermark Lodging Trust REIT and due diligence failures may have played a part. There also may have been misrepresentations and omission of the risks, even if caused by ignorance—which would be negligence. These all could be grounds for filing a non-traded REIT loss lawsuit against the financial advisor that sold you this investment.

Non-traded REITs are generally unsuitable for most retail investors.

 

What You Should Know About Non-Traded REIT Losses

Even if your financial advisor had nothing to do with the demise of Watermark Lodging Trust, if they unsuitably recommended this non-traded REIT or failed to recognize the red flags, you may be able to sue the broker-dealer.

Should you have grounds for holding your broker liable, it is important to know that pursuing damages over non-traded REIT losses can be very difficult without seasoned alternative investment lawyers by your side. Shepherd Smith Edwards and Kantas represent non-traded REIT investors and REIT investors in their financial recovery. We have gone after the largest Wall Street firms on behalf of our clients and secured full or partial awards or settlements for more than 90% of them.

Most likely you would have to bring your claim in FINRA arbitration and that is a legal venue we are very familiar with. Different from going to court, specific strategies and approaches are necessary in order to maximize your chances for a successful outcome.

How To Contact Our Non-Traded REIT Fraud Attorneys

Call the SSEK Non-Traded REIT Fraud Attorneys at (800) 259-9010 today or contact us online.