According to a November 3, 2011, Investment News article by Bruce Kelly, Morningstar, Inc., has announced that it will begin covering non-traded REITs by the end of the first quarter of 2012. According to the article, Morningstar has hired Phillip J. Martin to lead Morningstar’s non-traded REIT coverage. The article includes a quote from a… [Read More]
Apple REITs Draw FINRA Enforcement Scrutiny
On May 31, 2011, the Financial Industry Regulatory Authority (“FINRA”) filed an enforcement action against David Lerner Associates, Inc. (“DLA”), a broker/dealer with offices in New York, New Jersey, Connecticut, and Florida. In its enforcement complaint, FINRA alleges that since January, 2011, DLA has recommended and sold over $300 million of shares in Apple REIT… [Read More]
FINRA Announces Enforcement Focus on Private Placements and Non-Traded REITs
Within the past two weeks, two top FINRA officials have announced the focus of FINRA enforcement on private placements and non-traded REITs sold by broker/dealers to their customers. According to an Investment News article by Bruce Kelly on February 2, 2011, James Shoriss, Executive Vice President and Executive Director of Enforcement for FINRA, announced in… [Read More]
Whitestone REIT: A Non-Traded REIT Cautionary Tale
Whitestone REIT, originally known as Hartman Commercial Properties REIT, was a publicly offered, non-traded REIT. The sponsors of the Hartman REIT began offering shares to investors through stock brokerage firms in 2004. The Hartman REIT shares were offered to the public at a price of $10 per share, which the prospectus states was an arbitrarily… [Read More]
Non-Traded REITs: A Disaster for Investors
The term “REIT” is an acronym for real estate investment trust. A REIT is a company that owns and manages real estate-related assets. Those assets can include office buildings, apartments, shopping malls, mortgages, warehouse properties, and lodging facilities. Types of REITs include publicly traded REITs; publicly offered, non-traded REITs; and private REITs. Shares of publicly traded… [Read More]