National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in Ares Industrial Real Estate Income Trust (AIREIT) to investors without fully disclosing the risks, liquidity limitations, and structural characteristics of this non-traded, perpetual-life REIT. Our law firm believes many investors may have been misled regarding the risks and liquidity issues associated with Ares Management Corporation’s investment offering.
If your financial advisor recommended an unsuitable Real Estate Investment Trust (“REIT”) based on your investment profile, or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
If you suffered losses in Ares Industrial Real Estate Income Trust, or any other investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Ares Industrial Real Estate Income Trust (AIREIT) is a perpetual-life, non-traded real estate investment trust sponsored by Ares Management Corporation, a global alternative asset manager overseeing hundreds of billions of dollars in assets. AIREIT was launched in 2017 and focuses exclusively on U.S. industrial real estate, including logistics, distribution, and warehouse properties.
Because AIREIT is not publicly traded, its shares do not trade on an exchange. Instead, the REIT reports a monthly net asset value (NAV) that is determined internally. Investors typically gain exposure through brokerage firms that market AIREIT as a private REIT alternative to publicly traded real estate investments.
Unlike publicly traded REITs, liquidity is limited. Investor redemptions are subject to strict caps, generally 2% of NAV per month and 5% per quarter, and redemption requests may be delayed, reduced, or suspended entirely. Shares held for less than one year may be redeemed at a discount to NAV, and redemption programs are not guaranteed.
Although AIREIT continues to grow its portfolio, ongoing reliance on leverage, fundraising, and capital inflows to support distributions raises important questions about sustainability—particularly for investors who purchased the REIT primarily for stable income.
Non-traded REITs like AIREIT carry risks that may not be appropriate for many retail investors, including:
These risks are particularly important for retirees, conservative investors, and those with income or liquidity needs.
If you suffered losses in Ares Industrial Real Estate Income Trust, or any other investments, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.
Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products. A problem often associated with alternative investment recommendations, such as REITs and BDCs, is the high sales commissions brokers typically earn for selling these investments, which can be as high as 15%. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you suffered losses in Ares Industrial Real Estate Income Trust or other investments, you are encouraged to contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in Ares Industrial Real Estate Income Trust. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable Ares Industrial Real Estate Income Trust investments, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you