Investigation of NorthStar Healthcare Income Trust Losses

The securities arbitration and investment litigation attorneys at Colling Gilbert Wright, PLLC are currently investigating and litigating Financial Industry Regulatory Authority (FINRA) arbitration claims for losses associated with the NorthStar Healthcare Income Trust, as well as many other non-traded real estate investment trusts (REITs). 

Non-traded REITs were wildly popular pre-covid as they purported to offer income seeking investors higher than market interest rates while paying investment advisors and stockbrokers up-front commissions approaching ten percent (10%). However, often glossed over during the sales presentation are the various risks involved, including those associated with the NorthStar Healthcare Income REIT. The value of NorthStar Healthcare Income REITs has dropped by nearly 40%, and the board of directors suspended payments to shareholders in the Spring of 2022, saddling investors with substantial losses. Due to the illiquid nature of these investments, the only avenue for selling the shares is often on secondary market outlets offering substantially less than the fund’s stated Net Asset Value (NAV). As a result, many investors are pursuing legal action against financial advisors and their brokerage firms through FINRA securities arbitration. 

If you have invested in the NorthStar Healthcare Income REIT and experience losses, please contact our office for a complimentary case evaluation and consultation on possible avenues for recovering your losses. Time may be of the essence. Many of the second and third tier firms, that traditionally sold these alternative/non-conforming investments, are often poorly capitalized and carry no or insufficient liability coverage. When the money is gone, investors are usually out of luck . At least two regional brokerage firms have recently delisted their registrations from FINRA as a result of overwhelming claims for losses related to REITs and other like investments. We look forward to hearing from you.