NorthStar Healthcare Secondary Sales Prices Suggests Big Losses for Investors
If your financial advisor unsuitably recommended investing in NorthStar Healthcare Income Inc., and you incurred losses, you may be able to recover your losses by filing a FINRA Arbitration claim.
NorthStar Healthcare Income was reportedly formed to “acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate,” according to its website. The company launched in February 2013, and through November 8, 2018, reportedly raised total gross proceeds of $2 billion, including $225.3 million through its distribution reinvestment plan.
In December 2017, NorthStar Healthcare reduced its distribution rate to 3.31% from 6.67%. Then, in 2018, the REIT lowered its Net Asset Value from $8.50 per share to $7.10 per share. Now, as of February 2019, it has suspended distributions all together.
According to recent financial statements, Northstar is reporting just $900 million dollars in investor equity, leaving investors wondering what happened to the rest of investor’s capital.
More Bad News for Investors- Secondary Sales Price -$2.40/Share
Unfortunately for investors, CFX Trading, a secondary market for non-traded REITs, recently listed shares of NorthStar Healthcare for just$2.40 per share. This indicates a significant loss to investors, as the original offering price was$10.00 per share.
The White Law Group continues to investigate securities fraud claims involving broker-dealers who may have unsuitably recommended NorthStar Healthcare Income Inc. to investors.
Investors looking to sell non-traded REITs, like NorthStar Healthcare, often have difficulty finding a buyer, and can suffer significant losses on the sale.
Another problem with non-traded REITs is that they tend to come with high commissons and fees. In the case of NorthStar Healthcare,the REIT reportedly charges a selling commission of up to 7% of gross offering proceeds (except on shares acquired through reinvestment), a dealer-manager fee of up to 3%, an acquisition fee of 2.25% for properties acquired by the REIT, as well as additional organizational and offering fees, according to the prospectus.
Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended NorthStar Healthcare and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claims against the brokerage firm that sold you the investment.
If you suffered losses investing in NorthStar Healthcare Income, please contact The White Law Group at 1-888-637-5510 for a free, no obligation consultation with a securities attorney.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.