Recovery of NorthStar Real Estate Income Trust Investment Losses
Have you suffered losses investing in NorthStar Real Estate Income Trust (now known as N1 Liquidating Trust)? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
NorthStar, a publicly registered non-traded REIT, invests in real estate debt, select equity and securities investments predominantly in the United States. The SEC declared the offering effective in July 2010 and closed in July 2013 after raising more than $1.1 billion.
Colony NorthStar Inc. merged with NorthStar Real Estate Income Trust and affiliated non-traded REIT NorthStar Real Estate Income Trust II on January 18, 2018.
Unfortunately for investors, NorthStar shareholders reportedly lost one-third of their original value of their investment overnight after the newly formed company Colony NorthStar became publicly listed under the symbol “CLNC.”
Investors may not have understood the need to exit their position before the merger took place resulting in a much more volatile publicly traded company.
Update on November 3, 2020 – Final Disbursement
According to filings with the SEC, N1 Liquidating Trust sold its sole asset, on October 13, 2020. The Trust is reportedly distributing the proceeds received from the discounted payoff, on or around October 31, 2020. The Trust estimates that approximately $0.07 net per unit of beneficial interest will be distributed and that this will be the final disbursement of the unitholders’ interest in the Trust. The Trust expects that its existence will be terminated shortly following this distribution.
Secondary Market Listing – N1 Liquidating Trust
According to Central Trade & Transfer, a secondary market for non-traded REITs, shares of N1 Liquidating Trust were recently listed for just $.30/per share. The original offering price of NorthStar Real Estate Income Trust was $10.00/share.
The trouble with non-traded REITs, NorthStar Real Estate Income Trust, is that they are complex and inherently risky products.
Investors looking to sell non-traded REITs such as this, often have difficulty finding a buyer, and can suffer significant losses on the sale.
Broker dealers are required to inform clients of the risks associated with investment recommendations. They must ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so may be held responsible for any losses.
Recovery of Investment Losses
If you have suffered losses investing in NorthStar Real Estate Income Trust and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. To learn more about The White Law Group visit www.whitesecuritieslaw.com.
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