Northstar Healthcare Income REIT, a Public, non-traded property investment trust, has recently suspended its distributions, based on filings made with the Securities and Exchange Commission. In addition, investors are seeing a massive loss of their shares on the secondary market. Investors are encouraged to contact the Investment Loss Recovery Group at 1(888) 628-5590 to see if they have been fraudulently sold Northstar Healthcare Income.
According to the company’s website, Northstar Healthcare is a general public, non-traded REIT “formed to emerge, acquire and advantage manage equity and debt investments in healthcare real estate.” Its principal focus is on investments in”the needs-driven senior housing industry,” which includes independent living facilities, assisted living centers, memory care, and skilled nursing facilities. The website describes the needs-driven senior home industry as”an attractive asset class” and states that the REIT is meant for investors who are”seeking income through regular cash distributions” (although it stresses that there’s no assurance of them ), who desire the prospect of capital appreciation, decreased volatility and a low correlation to traditional asset classes, and that are seeking commercial real estate exposure in their own portfolios.
Northstar Healthcare Income Share Value Drops
Northstar Healthcare Income is sponsored By Colony Capital, “a leading international property and investment management company” with $43 billion in funds under management. Northstar Healthcare Income initially Offered its REIT shares at $10/share, with secondary market shares recently listed at $6.70/share. But, SEC filings indicate that the business has recently suspended distributions to its shareholders. It’s share price has plummeted below $7 per share.
Stanger determined an appraised value scope on 27 of the 79 While it relied upon appraisal reports prepared by new third-party evaluation firms for 50 properties, along with the contractual sale cost of two pending asset sales. As reported last year, NorthStar Healthcare’s previous net asset value of $8.50 per share has been based on 67 healthcare real estate properties, five joint venture branches, one debt investment, and 61 health real estate obligations.
The company cited numerous factors which contributed to the decrease in net asset value, such as occupancy challenges in select markets, increased labor costs, restructuring rentals, replacing tenants, and capital expenditures while continuing to make consistent distributions to its shareholders. Chairman, chief executive officer and president of Northstar Healthcare commented,”Although we’re disappointed at the decline in estimated per share value, we believe that the recently finished operator transitions, funding reinvested within our portfolio and extra resources added to the advisor’s asset management team will facilitate the continued effort to enhance the performance of our investments.”
A real estate investment trust, or REIT, Is an entity that uses the combined funds in the pool of investors to Buy real estate property. REITs could be publicly traded or privately Held; non-traded REITs can be quite illiquid investments. While they Expand new investment opportunities to investors that otherwise could not Access certain real estate investments, they can also pose risks to Short-term investors as well as a few long-term investors. Investment Professionals who recommend unsuitable REITs could possibly be subject to Disciplinary actions by FINRA or the Securities and Exchange Commission.
If you lost money because your broker or adviser recommended Northstar Healthcare, non-traded REITs, or over-concentrated your investments, call Investment Loss Recovery Group today at (888) 628-5590.
Tom Barron has Bachelors Degree from Michigan State, MBA from University of Miami and worked as equities trader for Bank of America. When he is covering investment news, he is spending time with his family. Hobbies include golf and travel.