NorthStar Real Estate Income Trust Investment Investigation
Have you suffered investment losses in NorthStar Real Estate Income Trust? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.
According to their website, NorthStar Securities, LLC is the broker-dealer affiliate of Colony NorthStar, Inc. (NYSE: CLNS), a leading global real estate and investment management firm. Colony NorthStar strategically manages real estate and other investment platforms in the United States and internationally. It was one of the first institutional managers to offer retail products to individual investors.
Unfortunately for investors, Central Trade & Transfer, a secondary market for private placements, is listing shares of NorthStar Real Estate Income Trust for just $8.50 per share. The original offering price was $10.00/share.
Risks of Non-traded REITs
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.
Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. 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. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.
In addition to the high risks, non-traded REITs, like NorthStar Real Estate Income Trust 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.
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 Real Estate Income Trust. 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 Real Estate Income Trust 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.