In late January, 2019, those people that invested in BR 1355 First Avenue Development, LLC as Tenants-in-Common (TIC) or through the purchase of 12% Subordinate Notes in The Charles, a luxury condominium by Bluerock Real Estate learned that they would not receive a return of their principal investment.
The Charles project started selling investment opportunities in 2008 and was scheduled to complete constructions in the spring of 2010. The original pitch for the investment involved return of principal investment in two years along with receipt of 8% interest. The Charles did not complete construction until 2014. The condominium units ultimately sold for far less than what was expected and the Subordinated Noteholders and Preferred Equity Investors were not paid back their principal investments.
If you purchased this product, lost your principal investment, and were not explained the risks of this investment, you may have a claim against your Broker.
Many investors may have been attracted to the potentially high returns offered by TIC or other complex real estate investments. Prior to recommending a client purchase for this type of complex investment, a Broker has a duty to explain to the investor that that this investment was illiquid, highly risky, and speculative.
Seth Hill is a Shareholder at Halling and Cayo, a full service law firm in Milwaukee, WI and part of its Securities Litigation team.
Attorney Hill’s practice focuses on investor’s rights and securities litigation within the FINRA arbitration forum.
Contact him at 414-271-3400 or via e-mail at DSH@hallingcayo.com to see if he can help recover funds.