Corporate Property Associates 18 – Global Incorporated (CPA:18 Global)
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On April 20, 2022 GWG Holdings, Inc. (GWG) filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas (case 22-90032). According to an article in the Wall Street Journal, published on the same day, the bankruptcy was due to “accounting issues...read more
Have you lost money due to your purchase of shares in Corporate Property Associates 18 – Global Incorporated (CPA:18 Global) or are you unable to sell your stake in this investment? CPA:18 Global is a non-traded REIT that, per its SEC filings, “invest[s] primarily in income producing commercial and other real estate assets.” CPA:18 Global has raised approximately $1.2 billion in gross proceeds from investors.
In its most recent Form 10-Q report filed with the SEC (for the quarter ending March 31st, 2020) CPA:18 Global states that its net lease portfolio holds ownership in 47 properties, with 65 tenants, totaling 9.6 million square feet – and that CPA:18 Global also holds ownership interests in 68 self-storage properties, 12 student housing projects and 2 student housing operating properties and that these properties total approximately 5.5 million square feet.
Perhaps unknown to investors in CPA:18 Global is that as much of 12% of their initial investment could have been stripped out in the form of selling commissions and various offering fees and expenses. Additionally, many investors may believe that the distributions they receive from their investment in CPA:18 Global are profit or interest from their investment. In fact, a portion of these distribution payments may simply be a repayment of their initial investment – called “return of capital.”
CPA:18 Global is an illiquid and complex ‘Private Placement’ investment. The term Private Placement is a catch-all term that can also refer to Private Equity, Illiquid Alternative Investments, Direct Placements, Limited Partnerships, non-traded REITs, and a variety of other terms. In a recent article, our firm published a primer on the unique pitfalls of investing in private placements. This post can be found here.
Private placements like CPA:18 Global are complex investments that can be risky and very difficult to unload once purchased. If you purchased CPA:18 Global through an investment advisor or stockbroker, and have suffered heavy losses or were misled as to the nature of your investment, you may be able to recover your money through a process called FINRA arbitration.
FINRA arbitration is a unique, narrow area of the law. The attorneys at Epperson & Greenidge have extensive experience with FINRA and we specialize in bringing these arbitration claims on behalf of investors.
If you or a loved one lost money investing in CPA:18 Global call the experienced FINRA arbitration attorneys at Epperson & Greenidge for a free consultation (877) 445-9261 or contact us on-line.