September 1, 2018 Comments (0) Blog, Current Investigations

NorthStar/RXR New York Metro Real Estate Inc.

NorthStar/RXR

NorthStar/RXR New York Metro Real Estate – Liquidation Plans

Are you concerned about your investment in NorthStar/RXR New York Metro Real Estate? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

NorthStar/RXR New York Metro Real Estate, Inc. (NorthStar/RXR) is structured as a public, non-traded real estate investment trust (REIT) formed to acquire high-quality commercial real estate and seek value-add investment opportunities in the New York metropolitan area, according to its website.

According to SEC filings, on August 20, 2018, the board of NorthStar/RXR approved a plan for the company to sell all of its assets in one or more transactions. In addition, once NorthStar/RXR has disposed of its assets, it plans to merge into a subsidiary of the REIT’s advisor to facilitate the distribution of the sales proceeds and any available cash to stockholders.

The transactions are expected to close in late 2018, subject to certain closing conditions, including stockholder approval.

The company reportedly noted that its co-sponsors, Colony Capital Inc. and RXR Realty LLC, have agreed to forfeit their shares to increase total distributions to stockholders. Colony and RXR own approximately 212,100 and 70,700 shares respectively, and both agreed to have their shares redeemed for $0.01 each.

The board also voted to suspend the company’s share repurchase program, effective August 31, 2018, according to filings with the SEC.

NorthStar/RXR New York Metro Real Estate was declared effective in February 2015 and raised $40 million in investor equity before closing during the first quarter of 2018.

Non-Traded REITs – High-Risk, Complex Investments

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended high-risk non-traded REITs like NorthStar/RXR New York Metro Real Estate to investors.

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.

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. Many investors are unaware of the downside of purchasing non-traded REITs, especially the lack of liquidity.

Investors looking to sell non-traded REITs often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

If you are concerned about your investment in NorthStar/RXR New York Metro Real Estate or another NorthStar offering and would like a free consultation with a securities attorney, please call The White Law Group 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.