Inland Western REIT
The Florida securities arbitration lawyers at McCabe Rabin, P.A. are investigating the marketing and sales of the Inland Western Real Estate Investment Trust Inc. n/k/a Retail Properties of America, Inc. (“Retail Properties”) by brokerage firms, including Ameriprise, LPL Financial and others.
Retail Properties, based in Oakbrook, Illinois, is a real estate investment trust (“REIT”) that engages in the acquisition, development and management of properties in the U.S. real estate market. The Retail Properties REIT was initially sold as a non-traded REIT.
Non-traded or non-listed REITs are a $10 billion-a-year industry. These investments are a cash cow for brokers and firms because of the excessive fees they generate for the firms. Unfortunately, they can be a financial disaster for investors who have been misled about the risks involved, including the suspension of dividends and illiquidity.
Last month, Retail Properties was converted from a non-traded REIT to a publicly traded company on the New York Stock Exchange (NYSE: RPAI). Many investors, who purchased the Retail Properties REIT prior to the initial public offering (“IPO”), first had the opportunity to evaluate the true performance of their investment after the recent IPO. Prior to the IPO, the Retail Properties REIT had continued to appear on brokerage account statements at full value, or at a substantially higher value, than the current price.
At the IPO, RPAI was offered at $8, well below the expected $10 to $12. In addition, the $8 offering price was the result of a reverse stock split so, in reality, the true value was around $3.20. As a result, many of the pre-IPO investors have lost nearly half of their investment.
The securities arbitration attorneys at McCabe Rabin are investigating whether brokerage firms, including Ameriprise, LPL Financial and others, adequately disclosed the nature and risk of the Retail Properties REIT to potential investors.
Investors nationwide who suffered a loss as a result of an investment in Inland Western Real Estate Investment Trust, Inc. n/k/a Retail Properties of America, Inc., and who may have a FINRA arbitration claim against the brokerage firm who recommended the investment, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to firstname.lastname@example.org.