Know your Risks: Lightstone Value Plus REITs

Fitapelli Kurta is investigating customer complaints related to the sale of Lightstone Value Plus REITs by broker-dealers.  Lightstone Value Plus is a newer REIT, or real estate investment trust.  Investors who invest in Lightstone Value Plus REIT should be fully advised of the risks of their investment by their broker.

Specifically, the following risk factors are disclosed in Lightstone Value Plus REITs form 10K, dated March 31, 2015:

·         Lightstone Value Plus REIT and its advisors have limited experience investing in real estate.  Specifically, Lightstone Value Plus REIT was incorporated on October 5, 2012 and as of March 31, 2015 they have made only one investment in real estate.

·         The sponsors of Lightstone Value Plus REIT have

·         Shares in Lightstone Value Plus REITs are illiquid, meaning that they cannot be bought and sold on a public market.  This means that it may be difficult for investors to sell their shares of Lightstone Value Plus REIT.

·         The sponsors of Lightstone Value Plus REIT have been involved with investments that have faced adverse business developments, including bankruptcies.

·         Lightstone Value Plus REITs may make some or all of its distributions from sources other than cash flows from properties.   This means that Lightstone Value Plus REITs may use offering proceeds to fund distributions to its shareholders.

·         Investment decisions may be made without detailed information on properties.  According to Lightstone Value Plus REIT, it may risk non-refundable deposits prior to its completion of due diligence on property acquisitions.

·         Some Lightstone Value Plus REITs have suspended their share repurchase programs.

Your broker, or financial advisor, had a legal obligation to advise you of the risks discussed in this article.  If you invested in a Lightstone Value Plus REIT and you were not advised on the following material risks by your broker-dealer, you may be able to recover the value of your investment plus your lost opportunity costs.  The law may limit the time you have to seek recovery.

For a free consultation of any claims you may have associated with the recommendation of a Lightstone Value Plus REIT, contact us today.