Investigating Potential Claims – Northstar Healthcare Income REIT
Did you lose money investing in Northstar Healthcare Income REIT at the recommendation of your financial advisor? If so, The White Law Group may be able to help you recover your losses by filing a FINRA arbitration claim against the brokerage firm that sold you the investment.
According to its website, NorthStar Securities, LLC is the broker-dealer affiliate of Colony NorthStar, Inc. Colony NorthStar is a global real estate firm that manages real estate and other investment platforms in the United States and internationally.
Are Non-Traded REITs a suitable investment for you?
Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.
Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Brokers have an opportunity to earn high commissions—sometimes as high as 15% — on non-traded REITs. This may provide some brokers with enough incentive to make unsuitable investment recommendations.
Non-traded REITs, like Northstar Healthcare Income REIT often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.
Unfortunately for investors, Central Trade & Transfer, a secondary market for private placements, is listing shares of NorthStar Real Estate Income Trust for just $6.70 per share. The original offering price was $10.00/share.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like Northstar Healthcare Income REIT. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.
If you suffered losses investing in Northstar Healthcare Income REIT The White Law Group may be able to help you. For a free consultation with a securities attorney, please call our law offices at 888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.