NorthStar Healthcare Income

NorthStar Healthcare Income Real Estate Investment Trust (REIT) is a company that handles debt and equity investments associated with healthcare real estate. The company focuses on senior housing and invests in other healthcare facilities, often in the Midwest of the United States. 

The company also has a reputation for generating complaints. You can learn more about the company and potential Real Estate Investment Trusts (REITs) loss claims today. 

What Is NorthStar Healthcare Income?

NorthStar Healthcare operates as a public, non-traded real estate investment trust (REIT). The company handles debt and equity investments, specifically those that deal with healthcare real estate. 

For example, the company specializes in investments in:

• Senior housing and senior communities
• Assisted living facilities 
• Nursing homes

The company also has investments in hospitals, rehab clinics, and other health-related facilities. Most of the facilities the company invests in are in the Midwest of the United States. The company raised around $1.8 billion from an initial public offering that occurred in 2015 and through an additional offering in 2016.

Information About NorthStar Healthcare Income Complaints

NorthStar Healthcare Income Real Estate Investment Trust (REIT) has faced complaints from investors since early 2019, when the board stopped making dividend payments. The board made this decision after assessing the company’s:

• Financial health 
• Capital requirements
• Liquidity resources 

Prior to stopping distributions, the company’s upper management stated that the value of its units had dropped by over 30%. 

Investors in the company allege that the company never fully shared information about these distributions. For example, investors say they did not know that the distributions offered by the company failed to accurately reflect returns on investments. 

Additionally, investors say they were unaware that the distribution payments came from a return in principle, or, potentially, a large loan. 

What Made NorthStar Healthcare Income a Dangerous Investment?

In some cases, investment advisors will suggest that their clients include REITS in their portfolios to increase real estate exposure. Some advisors even recommend REITs as a fixed-income alternative. However, these products often represent hazardous investments with unproven, at best, results. 

NorthStar Healthcare Income Fraud and Losses

Investors may have lost money due to fraud and misrepresentation by financial advisors and brokers related to NorthStar Healthcare Income. Allegedly, some of these advisors misrepresented the product, claiming that it resembled a bond fund to convince clients to add it to their portfolios. 

investors may have agreed to invest in this REIT on the suggestion of financial advisers, who often pushed this product due to the high commissions offered by NorthStar Healthcare Income. Some claim that the company offered 7% in upfront commissions for these sales, with additional fees and costs adding an extra 6%. 

An investment fraud lawyer can provide more information about possible wrongful conduct associated with this REIT. 

How to Recover From NorthStar Healthcare Income Fraud

It’s natural to wonder how you can recover financially if you lost money due to fraud or misconduct associated with REITs. Many individuals in this situation pursuing a claim relatingo to their NorthStar Healthcare investments to recover their losses. 

However, you often cannot file a lawsuit in court to get compensation after an act of misconduct by an investment advisor or firm. These companies typically make their clients sign an agreement to pursue dispute resolution through Financial Industry Regulatory Authority (FINRA) arbitration, or in another arbitration forum, instead of a lawsuit in court. 

An attorney can walk you through each step of the FINRA arbitration process. The FINRA arbitration board can review all evidence about acts of fraud or misconduct, assess an investor’s losses, and make a legally binding decision at the resolution of the process. 

Who Qualifies for FINRA Arbitration?

Investors may qualify to go through FINRA arbitration if an attorney can show that an advisor or broker misrepresented NorthStar Healthcare Income, claiming that the REIT represented a safe investment option. 

Investors may also proceed with arbitration if an advisor overconcentrated their account on this REIT, resulting in significant financial damage to an investor’s portfolio. 

Compensation Available Through FINRA Arbitration

FINRA arbitration may allow individuals to recover from their investment losses. The specific compensation available through the arbitration process will depend on the specific losses sustained by each investor. 

We Can Help With a NorthStar Healthcare Income Claim

You are not alone if you lost money due to investor misconduct associated with NorthStar Healthcare Income. Our team at Meyer Wilson Werning can step in to assist with your legal needs if you lost over $100,000 due to fraud or other wrongful actions on behalf of an investment professional. 

Our team has served thousands of clients around the country, securing over $350,000,000 in compensation for those who turn to us for assistance in this challenging time. 

We’re fully prepared to guide you through the FINRA arbitration process and to explain what to do if you suspect you’re the victim of a REIT scam. Schedule a free consultation today.