Written by 2:55 pm Blog

NorthStar Real Estate Income II, Inc. Investment Losses

Are you concerned about investment losses in NorthStar Real Estate Income II REIT? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

On December 22, 2016, the board of directors of NorthStar Real Estate Income II, Inc. (NSREI II) established an estimated net asset value per share of $9.26 for both the Class A and Class T shares of common stock, as of September 30, 2016.  The board of directors retained the services of Duff & Phelps, LLC to assist in the valuation of the liabilities and assets of NSREI II.

The White Law Group continues to investigate potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like NorthStar Real Estate Income II. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

In addition to the high risks, non-traded REITs, like NorthStar Real Estate Income II often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

For more information on The White Law Group’s investigation in to potential North Star Real Estate Income II claims, see Latest News on Northstar Real Estate Income II.

If you suffered losses investing in NorthStar Real Estate Income II and would like a free consultation with a securities attorney, please call The White Law Group at (888) 637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

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