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July 13, 2018 Comments (0) Blog, Current Investigations

Northstar Healthcare Income REIT Secondary Market Offer

Northstar Healthcare

Recovery of Investment Losses in Northstar Healthcare Income REIT

The White Law Group continues to investigate FINRA arbitration claims involving Northstar Healthcare Income REIT. 

NorthStar Healthcare Income, Inc. is a public, non-traded real estate investment trust (REIT) that was formed to originate, acquire and asset manage equity and debt investments in healthcare real estate, according to Bloomberg.

Unfortunately for investors it appears that many financial advisors/brokerage firms that sold REITs such as Northstar Healthcare Income REIT, may have understated or misrepresented the risks and liquidity problems.

Bad News for Investors?

According to Central Trade & Transfer, a secondary market website, shares of Northstar Healthcare Income REIT are listed for just $6.35 per share. Unfortunately for many investors, it appears that the secondary market price would represent a loss on their initial capital investment. The original offering price was $10.00 per share.

Further, in June 2017 the board of NorthStar Healthcare Income approved a 6.6% decrease in the net asset value of the company’s common stock, to $8.50 per share.

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

High commissions could be a motivating factor for unscrupulous financial advisors to sell the REIT regardless of whether the investment is appropriate for the client’s investment objectives and profile.  Moreover, the total commissions and expenses could make it difficult for the REIT to perform in line with the market.

Free Consultation with a Securities Attorney

If you invested in a Northstar Healthcare Income REIT and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.