Understanding the Risks of Non-Traded REITs: A Closer Look at Silver Star Properties REIT
At Meyer Wilson, we have taken an interest in the plight of investors who have faced losses with the Silver Star Properties Non-Traded Real Estate Investment Trust (REIT). It’s important to understand that non-traded REITs, unlike their traded counterparts, do not have a public securities exchange listing, making them inherently less liquid and often more risky.
As a seasoned investment loss recovery firm, we’ve seen how financial advisors may be enticed by the high commissions offered by non-traded REITs. Unfortunately, this can lead to situations where the associated risks are not fully disclosed to investors, who may not realize the challenges they could face when trying to sell their investments. Investors are often sold non-traded REITs as a way to earn interest. In reality, they are incredible risky and typically perform far worse than traded REITs.
The case of Silver Star Properties REIT is a sobering example. Owning an impressive portfolio of 44 commercial properties in Texas, the REIT has recently encountered significant hardships. In September 2023, one of its subsidiaries filed for bankruptcy as part of a strategic shift towards self-storage assets. This has led to the suspension of distributions to shareholders, leaving many investors without income and at risk of losing their initial investment.
The issues faced by Silver Star Properties REIT are multifaceted, involving poor management decisions, delayed financial reporting, tenant dissatisfaction, and inefficient capital allocation. These problems have culminated in an SEC investigation into the company’s practices, further undermining investor confidence.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Investment Misconduct Recovery Options
Investors who have been affected by the misfortunes of the Silver Star Properties REIT might have recourse through legal action against the brokerage firms that recommended these products without proper due diligence. Financial advisors and their firms have a duty to ensure that the investments they recommend are suitable for their clients, considering their needs and objectives. They must also adequately supervise their advisors’ activities. Failure to fulfill these responsibilities could result in liability for the losses incurred by investors.
At Meyer Wilson, we stand with investors across the nation, fighting for their rights in securities litigation and arbitration. Our firm operates on a contingency fee basis, meaning we only get paid if we successfully recover your losses. With years of experience handling a wide array of securities cases, our team is well-equipped to advocate for your interests.
We encourage any investor who has suffered losses with Silver Star Properties REIT to reach out to us. Our commitment to our clients is unwavering, and we are dedicated to seeking justice on your behalf. To discuss your situation with our experienced team, please contact us at 866-938-2021 or visit our website at investorclaims.com. Your initial consultation is free, and we’re here to help you navigate these complex matters.
Written By: Courtney Werning, Esq.
Recovering Losses Caused by Investment Misconduct.