Recovery of NorthStar Healthcare Income Investment Losses
Have you suffered investment losses in NorthStar Healthcare REIT? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution Claim against the brokerage firm that sold you the investment.
NorthStar Healthcare, a public, non-traded real estate investment trust (REIT) invests in healthcare real estate, with a focus on the independent living facilities, assisted living, memory care and skilled nursing facilities, according to its website.
The White Law Group continues to investigate potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like NorthStar Healthcare REIT The firm has represented numerous investors in claims against their brokerage firms to recover non-traded REIT investment losses.
NorthStar Healthcare REIT NAV Continues to Decline
NorthStar Healthcare reduced its distribution rate to 3.31% from 6.67% in December 2017 and The REIT’s Net Asset Value has continued to decline as seen below. The current NAV is estimated at $3.89 per share, as of June 20, 2020, according to filings with the SEC.
| Effective Date | Estimated Value per Share | Valuation Date | ||||||||||||
| April 2016 | $ | 8.63 | 12/31/2015 | |||||||||||
| December 2016 | 9.10 | 6/30/2016 | ||||||||||||
| December 2017 | 8.50 | 6/30/2017 | ||||||||||||
| December 2018 | 7.10 | 6/30/2018 | ||||||||||||
| December 2019 | 6.25 | 6/30/2019 | ||||||||||||
| December 2020 | 3.89 | 6/30/2020 | ||||||||||||
Distributions are Suspended
According to SEC filings, on February 1, 2019, the Company suspended distributions in order “to preserve capital and liquidity: and no distributions were declared during the nine months ended September 30, 2021.
Share Repurchase Program Suspended
In April 2020, NorthStar Healthcare REIT suspended all repurchases under the Share Repurchase Program effective April 30, 2020 in order to preserve capital and liquidity and has not repurchased any shares during the nine months ended September 30, 2021.
The Company notes it is not obligated to repurchase shares under the Share Repurchase Program. The Company may amend, suspend or terminate the Share Repurchase Program at its discretion at any time, subject to certain notice requirements.
How do I recover my money from NorthStar Healthcare Income REIT?
Non-traded 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.
Many investors are not fully aware of the problems and risks associated with non-traded REITs before purchasing them.
In addition to the high risks, non-traded REITs, like NorthStar Healthcare Income 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.
Central Trade & Transfer, a secondary market for non-traded REITs, has recently sold shares of NorthStar Healthcare for just $1.25 per share. This may indicate a significant loss to investors, as the original offering price was $10.00 per share.
Risks of Non-Traded REITs & Recovery Options
Aside from the lack of liquidity, 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 client’s 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.
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 continues to investigate potential securities claims involving broker dealers who may have improperly recommended NorthStar Healthcare Income REIT to investors. The firm has represented numerous investors who have lost money investing in NorthStar and under non-traded REITs.
If you suffered losses investing in NorthStar Healthcare Income Inc. and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
For more information on the firm’s investigation please see:
Investor Alert: Northstar Healthcare drops in current value
NorthStar Healthcare Income Suspends Distributions
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.
