NorthStar Healthcare REIT Lawsuits & Liquidation – Investor Recovery Options
Are you concerned about your investment in NorthStar Healthcare Income Inc.? The White Law Group continues to investigate potential securities fraud claims against brokerage firms that improperly recommended non-traded REITslike NorthStar Healthcare to their clients.
Our firm has represented numerous investors in FINRA arbitration claims seeking recovery of losses from unsuitable or misrepresented REIT investments.
NorthStar Healthcare to be Acquired by Welltower Inc.
Welltower Inc. (NYSE: WELL) is one step closer to acquiring NorthStar Healthcare Income Inc., an internally managed, public, non-listed REIT with a diversified portfolio of senior housing properties located throughout the United States.
During a special virtual meeting, a majority of NorthStar stockholders reportedly approved proposals related to the merger agreement with Welltower. The all-cash transaction, previously announced, has an approximate enterprise value of $900 million.
Under the terms of the agreement, NorthStar Healthcare stockholders will receive $3.03 per share in cash, which exceeds the REIT’s net asset value (NAV) of $2.96 per share as of June 30, 2024, as determined by NorthStar’s board of directors. The merger agreement had already been unanimously approved by the board earlier this year. The deal is expected to close this quarter, pending customary closing conditions.
Investor Offers at a Fraction of Original Value
Earlier in 2024, Comrit Investments 1 LP made an unsolicited tender offer to purchase up to 9.35 million shares of NorthStar Healthcare for $1.01 per share—a steep discount from the original $10.00 per share offering price.
Trades on Central Trade & Transfer, a secondary market for non-traded REITs, have also reflected similar pricing, confirming that many investors may face significant losses if selling their shares.
NorthStar Healthcare REIT Share Value Decline
The REIT’s share value has dropped sharply over time, as outlined below:
| Effective Date | Estimated NAV per Share |
|---|---|
| April 2016 | $8.63 |
| December 2016 | $9.10 |
| December 2017 | $8.50 |
| December 2018 | $7.10 |
| December 2019 | $6.25 |
| December 2020 | $3.89 |
| December 2022 | $2.93 |
| June 2024 | $2.96 |
The Risks of Non-Traded REITs like NorthStar Healthcare
Non-traded real estate investment trusts (REITs) are illiquid, complex, and high-risk investments that may not be suitable for the average retail investor. Unlike publicly traded REITs, these products are not listed on an exchange and can be difficult to sell—often resulting in substantial losses.
Additionally, investors are often unaware of the high upfront fees and commissions, lack of liquidity, and limited transparency that characterize non-traded REITs.
Broker Due Diligence and Misconduct
Brokerage firms that recommended NorthStar Healthcare REIT may have failed in their obligations to:
-
Conduct proper due diligence on the offering
-
Disclose the true risks and illiquidity
-
Ensure the investment was suitable for the individual investor
REITs often carry commissions up to 15%, incentivizing brokers to recommend them regardless of the client’s needs or risk tolerance. When these responsibilities are breached, broker-dealers may be liable for resulting losses in a FINRA arbitration claim.
Legal Options: FINRA Arbitration vs. Class Action
Investors often ask whether a class action lawsuit or individual FINRA arbitration is the best way to pursue recovery. Here’s a brief comparison:
-
FINRA Arbitration:
-
Typically faster (12–18 months)
-
Private and binding
-
Tailored to individual losses
-
Ideal for larger claims (often over $100,000)
-
-
Class Action Lawsuits:
-
Group litigation with shared outcomes
-
Suitable for smaller claims
-
May take several years to resolve
-
At The White Law Group, we typically pursue individual FINRA arbitration claims, which often provide more efficient and personalized results for investors.
Recovering Losses in NorthStar Healthcare Income
If you invested in NorthStar Healthcare Income Inc. and experienced significant losses, you may be eligible to file a FINRA arbitration claim against the brokerage firm that recommended the investment.
The White Law Group has successfully handled hundreds of claims involving non-traded REITs, recovering millions of dollars for investors nationwide.
Contact The White Law Group Today
For a free consultation with a securities attorney, please call (888) 637-5510 or visit www.whitesecuritieslaw.com.
The White Law Group is a national securities fraud, arbitration, and investor protection law firm, with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states.
FAQs
1. Is the NorthStar Healthcare acquisition finalized?
As of June 2025, NorthStar stockholders have approved the merger with Welltower. The transaction is expected to close this quarter, pending customary closing conditions.
2. Why is my NorthStar REIT investment worth so little now?
The REIT’s net asset value has steadily declined from $10 per share at offering to under $3.00 in 2024. Secondary market transactions have reflected prices as low as $1.01 per share.
3. Can I recover my losses from NorthStar Healthcare?
Possibly. If your brokerage firm failed to perform due diligence or recommended the investment despite its unsuitability for your profile, you may be eligible to file a FINRA arbitration claim.
