Apple REIT Six, Seven and Eight recently provided investors with its 2011 outlook. Based on the reports, each of these REITs appears that it will pay out the maximum amount of redemptions allowed pursuant to the unit redemption program, which is $8 million per quarter.
Specifically, each of the REITs reported the following to investors:
"Apple Six paid a total of approximately $7.5 million in shareholder redemptions for its regularly scheduled redemption date in April 2011 and plans to pay an additional $8 million in shareholder redemptions on its next regularly scheduled redemption date of July 20, 2011."
"Apple Seven paid a total of approximately $8 million in shareholder redemptions for its regularly scheduled redemption date in April 2011 and plans to pay an additional $8 million in shareholder redemptions on its next regularly scheduled redemption date of July 20, 2011."
"Apple Eight paid a total of approximately $8 million in shareholder redemptions for its regularly scheduled redemption date in April 2011 and plans to pay an additional $8 million in shareholder redemptions on its next regularly scheduled redemption date of July 20, 2011."
For the first time, this is a signal from the Apple REITs to investors who seeking liquidity or an exit from this investment that it may not be able to get out of the investment as the redemption requests have been maximized. Even in light of this, investors have been reporting that David Lerner Associates is continuing to tell investors that they can submit redemption requests and expect to exit the investment through that process.
Many investors were promised (or led to believe) that they could get all of their money out of the Apple REITs after the first three years of investing. However, this may no longer be the case as investors are finding themselves stuck in the Apple REITs due to the avalance of redemption requests the REITs are receiving.
If you are an investor who is trying to get out of Apple REIT 6, 7 or 8, please contact one of our attorneys at 312-332-0000. Our attorneys 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.
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