Lerner’s Last Stand: Rift Grows Between Apple REITs and David Lerner Associates As They Disagree Over Apple REIT Share Valuations

Yesterday, Apple REIT 7 and Apple REIT 8 strayed from the party line of David Lerner Associates in valuing shares at less than $11 per share.  In responding to a $3 offer per share from an independent buyer, Apple REIT 7 declared its value to be $7.83 and Apple REIT declared its value to be $7.57.   

http://www.benzinga.com/press-releases/11/06/b1168556/apple-eight-recommends-rejection-of-unsolicited-opportunistic-tender-o   

http://www.businesswire.com/news/home/20110614007259/en/Apple-Recommends-Rejection-Unsolicited-Opportunistic-Tender-Offer. 

Even assuming Apple REIT’s own share valuation to be accurate, the values reflect about a 30% loss.  That best-case scenario is cold comfort for the hundreds of elderly and unsophisticated clients who were told that non-traded real estate investments were not volatile and were a safe alternative to the stock market!

Like Civil War General Custer, losses aren’t easily recognized or admitted by David Lerner Associates. In fact, David Lerner himself denies that his Apple REITs ever has lost money, and he continues to tell investors that all Apple REITs are worth $11 per share!  In a recent letter to “Valued Clients”, he suggested that his continued “estimate” of $11 per share was accurate, even as promoter Glade Knight told the New York Times, “Who knows what the value is?”   http://www.nytimes.com/2011/06/03/business/03norris.html.

The David Lerner fantasy must stop now! Investors in all Apple REITs should act quickly and contact one of our attorneys at 312-332-0000.  Our attorneys already are representing investors who have suffered losses investing in the Apple REITs along with those who are seeking to rescind (get out of) their investment in these products.