Non-Traded REIT Investors Suffer Major Losses: Northstar Healthcare, Hospital Investors' & AFIN REIT

Non-Traded REIT Investors Suffer Major Losses: Northstar Healthcare, Hospital Investors’ & AFIN REIT

Real Estate Investment Trusts (REIT)s are often promoted for being guarded income-delivering investments. Unfortunately, there exists, nonetheless, loads of landmines that can prompt enormous losses. This is especially true for non-traded REITs that are not sold on the exchanges.  This lack of price transparency has shocked investors who don’t realize their loses until they try and sell them.

Investors are recording claims for their losses on various non-traded REITs. One of the REITs, NorthStar Healthcare Income, Inc., suspended dispersions to investors on February 1. Shut to new memberships since December 2015, the publicly enlisted REIT was set up to procure, begin, and regulate securities in the healthcare industry.

Northstar Healthcare REIT

Northstar told investors that difficulties including performance and tasks had brought about a diminished assessed value/share in 2018 contrasted with 2017—from an $8.50 NAV/share toward the end of June 2017 to $7.10 NAV/share in December 2018.

The nontraded REIT’s board referred to various purposes behind the decline: an income influenced by the senior housing market, work costs identified with the investments that have affected the REIT’s portfolio, and more income issues. The income issue is also affecting the talented nursing industry and resources’ income losses.

Hospital Investors’ REIT Lose Value

Northstar isn’t the main nontraded REIT raising worries among investors. The leading body of Hospitality Investors Trust (also known as ARC Hospitality Trust) toward the end of December affirmed $9.21 as the assessed net asset value/share for the organization’s normal stock. A 33.6% drop from the earlier year of $13.87 per share NAV. The first share cost was $25.

Sales in Hospitality Investors Trust were suspended in late 2015 after $911M in investor reserves were raised. Dispersions to speculators were suspended in January 2017. In February 2019, the REIT suspended its Share Repurchase Program.

AFIN REIT Takes Unexpected Deep Dive

Another REIT to show a perceptible decrease in value is American Realty Capital. It is also known as American Finance Trust (AFIN).

Last July, AFIN saw a roughly 40% value drop after another REIT gave a $15 delicate offer for AFIN shares that were remarkable. Although $25/share was the standard worth cost, in March, AFIN’s exchanging cost was under $11—that is a 56% dive.

REIT Investor Fraud Claims

Haselkorn & Thibaut, a national investor law firm, is presently working with REIT investors who have experienced startling losses. These losses are from AFIN, Hospitality Investors Trust, and Northstar Healthcare Income.

Nontraded REITs are mind-boggling, investments have risks, and they are commonly most appropriate for complex investors and institutional investors. They are frequently unsafe for retail investors and average retirees.

If you endured nontraded REIT losses and you feel that you were not completely notified of the dangers in question, or the speculation was unsatisfactory for you yet suggested by your broker, you may have justification for recording an investment fraud claim.

Contact Haselkorn & Thibaut Law Firm today and request to talk with an accomplished and experienced REIT fraud lawyer at 1 888-628-5590 or visit for a free consultation on recovering your loses.

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