Non-Traded REIT Recovery Attorneys

Our Non-Traded REIT Recovery Attorneys Represent Investors Against Financial Advisors

If you have suffered losses in Four Springs Capital Trust, contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today. We are currently investigating claims of unsuitable investment recommendations in this illiquid, possibly troubled non-traded real estate investment trust (non-traded REIT).

Four Springs Capital Trust invests in and runs single-tenant, net-leased commercial properties that are mostly in the medical, necessity retail, and industrial sectors. It was promoted to investors as an alternative investment that is tax-advantaged and income-oriented.

Illiquidity issues, valuation uncertainties, and repeated but unsuccessful efforts to go public have raised questions over whether Four Springs Capital Trust was an appropriate recommendation for retail investors. These initial public offerings include a cancelled $115.9M IPO in 2017 and another one in December 2022. Market concerns were cited both times. Such withdrawals may be a sign of financial woes plaguing the non-traded REIT.

Shepherd Smith Edwards and Kantas is investigating whether brokers may have unsuitably recommended this non-traded real estate investment trust to customers. Questions have also been raised over whether or not financial advisors failed to fully apprise investors of the risks, committed due diligence failures that prevented them from assessing the viability of Four Springs Capital Trust, or overconcentrated clients’ accounts with it.

Non-traded REITs, especially those involved in the office sector, have undergone challenges in recent years. Meanwhile, the shift from workers needing to be on-site full-time to participating from a remote setup or in a hybrid situation continues.

There is less demand for office properties, which can lead to lower rental income, reduced occupancy rates, and depressed property values. Higher interest rates can also lower profitability and raise debt costs. This can impact certain non-traded REITs from being able to pay dividends.

Meanwhile, illiquidity issues may make it hard for non-traded REIT investors to resell their shares. Financial woes at the alternative investment can lead to the suspension of redemption programs. A lack of transparency with non-traded REITs can result in inaccurate appraisals.

How Can Our Non-Traded REIT Fraud Law Firm Help?

Shepherd Smith Edwards and Kantas represents investors against broker-dealers. Many of our clients have suffered non-traded REIT losses that could have been avoided or mitigated were it not for unsuitability, due diligence failures, negligence, excessive concentration, Regulation Best Interest violations, the failure to supervise, and more.

Non-traded REITs pay financial advisors high commissions and fees. This can make them a favorite investment to recommend for some brokers and investment advisers, regardless of whether or not they are the right fit for some customers. They are often unsuitable for conservative and inexperienced investors.

Distributions from non-traded real estate investment trusts are not guaranteed and can be suspended. Often, payouts may come from borrowed funds or proceeds, which can lower share value.

Contact Shepherd Smith Edwards and Kantas Today

Our trusted non-traded REIT loss lawyers have decades of experience representing alternative investors in FINRA arbitration, mediation, and litigation against financial advisors. We have helped many of our clients to secure the financial recovery they are owed. Our securities law firm is committed to providing investors with trusted securities representation and personalized attention.

Call (800) 259-9010 or fill out this online form to schedule your free case consultation.