Articles Tagged with Carey Watermark

Stoltmann Law Offices, P.C. is a Chicago-based investor rights law firm that offers representation nationwide on a contingency fee basis. We represent investors that lose money in bad investment products like Watermark Lodging Trust REIT in cases against brokerage firms and investment advisers. If you or someone you know has suffered investment losses in Carey Watermark n/k/a Watermark Lodging Trust REIT, please contact Stoltmann Law Offices for a no-obligation, free initial consultation.

In late November, Watermark Lodging Trust REIT reported its “NAV” or “Net-Asset-Value” as $5.51 per Class A share and $5.45 per Class T share. When this REIT was sold to investors, the NAV was $10 per share. Investors are looking at a loss on their December statement of nearly 50% of their principal investment. The Watermark Lodging Trust REIT was previously known as the Carey Watermark Investor and Carey Watermark Investors 1 REITs, which merged in April 2020.

If investors try to sell their shares on the secondary market, the bids are as low as $3 per share. Watermark Lodging REIT concentrates its real estate portfolio in hotels/hospitality which has been devastated this year by the COVID-19 pandemic. Although it is easy to blame the pandemic for these losses, an excuse brokers will certainly rely on, the fact is, this REIT has always been a high risk, speculative investment that concentrated investor money in a few properties in one narrow sector of the real estate world; hotels.  Non-Traded REITs are sold, not bought, by investors because financial advisors and brokers receive massive sales commissions for selling them.  These are “alternative” investments that offer higher income rates on paper, but in reality, usually distributed your own money back to you as a “distribution” and rarely generate enough income from the underlying portfolio to sustain their distribution rates. Most non-traded REITs are heavily indebted so that they can use debt to pay distributions to keep the flow of investor money coming in.

If you suffered losses in Carey Watermark Investors Inc., Stoltmann Law Offices may be able to help you recover those losses through the Financial Industry Regulatory Authority (FINRA) arbitration process. We are currently investigating claims that Carey Watermark was improperly recommended through broker-dealers. Carey Watermark is a high-risk, non-traded real estate investment trust (REIT) and they tend to be risky investments, which are not suitable for all investors. REITs are more complex and suitable for more sophisticated investors. REITs such as Carey Watermark lack liquidity as well. It is the responsibility of broker-dealers to make sure that their investment advisors perform due diligence on investment recommendations such as these, and, if they do not, they can be held liable for negligence, and can be responsible for losses in a FINRA arbitration claim. Please call Stoltmann Law Offices at 312-332-4200 to speak to an attorney about your options. The call is free with no obligation and our securities attorneys are standing by.

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