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Northstar Healthcare Income REIT Halts Distributions

Northstar Healthcare

Northstar Healthcare Income REIT, a public, non-traded real estate investment trust, has recently suspended its distributions, according to filings made with the Securities and Exchange Commission. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Northstar Healthcare Income REIT.

According to the company’s website, Northstar Healthcare is a public, non-traded REIT “formed to originate, acquire and asset manage equity and debt investments in healthcare real estate.” Its chief focus is on investments in “the needs-driven senior housing sector,” which includes independent living facilities, assisted living facilities, memory care, and skilled nursing facilities. The website describes the needs-driven senior housing sector as “an attractive asset class” and states that the REIT is intended for investors who are “seeking income through regular cash distributions” (though it stresses that there is no guarantee of these), who want the potential for capital appreciation, reduced volatility and a low correlation to traditional asset classes, and who are seeking commercial real estate exposure in their portfolios.

Northstar Healthcare Income is sponsored by Colony Capital, “a leading global real estate and investment management firm” with $43 billion in assets under management. The company’s management team includes Robert Gatenio, Executive Chairman; Ronald Jeanneault, CEO and President; Douglas W. Bath, CIO; Frank V. Saracino, CFO and Treasurer; and Ann B. Harrington, General Counsel and Secretary. As of March 31, 2018, it listed $3.5 billion under its equity portfolio’s management.

Northstar Healthcare Income originally offered its REIT shares at $10/share, with secondary market shares recently listed at $6.70/share. However, SEC filings indicate that the company has recently suspended distributions to its investors.

A real estate investment trust, or REIT, is an entity that uses the combined funds from a pool of investors to purchase real estate property. REITs can be publicly traded or privately held; non-traded REITs can be highly illiquid investments. While they extend new investment opportunities to investors who otherwise could not access certain real estate investments, they can also pose risks to short-term investors and even some long-term investors. Investment professionals who recommend unsuitable REITs may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.

If you or someone you know has a complaint regarding investments in Northstar Healthcare Income REIT, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup lost funds. Fitapelli Kurta accepts every case on contingency: we only get paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.

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