CNL Lifestyle Properties, Inc.-Related Investigation by Peiffer Wolf Carr & Kane Law Firm
CNL Lifestyle Properties, Inc. is a real estate investment trust (“REIT”) whose portfolio is focused on “lifestyle properties” such as ski and mountain properties, marinas, golf courses, gated attractions, water parks, and senior housing.
The Peiffer Wolf Carr & Kane securities lawyers are investigating sales of CNL Lifestyle Properties by stockbrokers to investors for whom CNL might have not been a suitable investment.
CNL currently holds 105 different properties. Its shares are not traded on an open market, and the value of the shares has dropped from an initial price of $10 per share to just $5.20 since the offering closed in April of 2011, according to an Investment News report.
As a result of this decrease, many investors might have been left holding a security that has lost a substantial portion of its value and has cut its distributions to investors.
What happened to this REIT?
CNL Lifestyle Properties, Inc. was launched in the mid-2000s. In June of 2010 its board of directors elected not to have a second offering of the REIT based on a variety of factors, according to a June 2010 company press release. Nevertheless, shares were offered until April 2011.
CNL Lifestyle Properties continues to operate as a REIT, despite the fact that it sold 46 of its 48 golf properties in 2014 to pay down its debts according a company release issued November 14, 2014. Bizjournals.com reported that one of the clubs sold, Weston Hills Country Club, was sold for 59% below its previous purchase price.
Was CNL Lifestyle Properties, Inc. suitable for investors?
CNL Lifestyle Properties, Inc. was sold to investors by stockbrokers, each of whom had a duty to evaluate both the suitability of the REIT itself and the suitability of the REIT to each investor who purchased it.
REITs are often risky investments and may only be suitable for high net worth investors with high risk tolerance. However, REITs are often sold with commissions to brokers that are much higher than commissions for readily-traded stocks, which can lead to brokers pushing REITs to garner high commissions—even when those REITs are unsuitable for investors.
CNL Lifestyle Properties, Inc. may not have been suitable for certain investors.
What options do CNL investors have?
The securities lawyers at Peiffer Wolf Carr & Kane Abdullah Carr & Kane have been investigating CNL Lifestyle Properties, Inc. and other similar types of REITs. Investors holding shares in this REIT may have different legal options depending on their situations.
The firm’s attorneys have represented investors who have purchased shares in REITs and other alternative investments in a wide variety of cases against brokers, companies, and other entities. Each investor’s situation is different.
Together, the lawyers at Peiffer Wolf Carr & Kane Abdullah Carr & Kane have decades of experience in evaluating the portfolios of hundreds of investors who have purchased REITs and other investments for suitability concerns.
Investors who believe they have lost money invested in REITs may contact the securities lawyers Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.