NorthStar Healthcare Income Inc. – Bad News for Investors
Have you suffered investment losses in NorthStar Healthcare Income Inc. REIT? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.
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 Income, Inc.. The firm has represented numerous investors in claims against their brokerage firms to recover non-traded REIT investment losses.
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 from $8.50 per share to $7.10 per share, then to $6.25 per share in December 2019. Further, the REIT suspended distributions last February.
Secondary Sales Price Suggests Big Losses for Investors
Unfortunately for investors, Central Trade & Transfer, a secondary market for non-traded REITs, recently sold shares of NorthStar Healthcare for just $1.68 per share. This may indicate a significant loss to investors, as the original offering price was $10.00 per share.
Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.
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 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.
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.
If you suffered losses investing in NorthStar Healthcare Income 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.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.
