Securities Investigation – Northstar Real Estate Income Trust

Have you suffered losses investing in NorthStar Real Estate Income Trust? If so, the securities attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

NorthStar , a publicly registered non-traded REIT, invests in real estate debt, select equity and securities investments predominantly in the United States. The SEC declared the offering effective in July 2010 and closed in July 2013 after raising more than $1.1 billion.

The REIT reportedly just sent a letter to shareholders recommending that they reject an unsolicited tender offer from MacKenzie Capital Management. The offer is seeking to purchase up to 2.5 million shares of the REIT for just $5.86 each. The original offering price was $10.00 share.

According to SEC filings, the net asset value per share of the REIT is $9.92 as of December 31, 2016.

Colony NorthStar Merger

Further, the REIT’s sponsor, Colony NorthStar Inc. recently announced plans to merge with NorthStar Real Estate Income Trust and affiliated non-traded REIT NorthStar Real Estate Income Trust II.

The merger is expected to close in late 2017 or early 2018 if approved by shareholders. The new entity will be a commercial real estate credit REIT named Colony NorthStar Credit Real Estate with approximately $5.5 billion in assets and $3.4 billion in equity value. According to MacKenzie, it plans to vote any shares it owns in favor of the merger.

NorthStar Real Estate Income Trust previously suspended its share repurchase program in connection with the pending merger.

Update on April 25, 2019

The shareholders of NorthStar Real Estate Income Trust Inc. I & II approved the merger on January 18^th, 2018 with Colony Capital.

Unfortunately for investors, NorthStar shareholders reportedly lost one-third of their original value of their investment overnight after the newly formed company Colony NorthStar became publicly listed under the symbol “CLNC.”

Investors may not have understood the need to exit their position before the merger took place resulting in a much more volatile publicaly traded company.

Are Non-Traded REITs a Suitable Investment for you?

The White Law Group is investigating potential claims involving broker-dealers who may have unsuitably sold NorthStar Real Estate Income Trust to their clients.

Brokerage firms are required to perform due diligence on the investment before recommending it. They must ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience.  Given the current risk of devaluation of these REITs, such investments are likely only suitable for wealthy and/or sophisticated investors.

Free Consultation

If you have concerns about your investment in NorthStar, or another REIT, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

You may gather more information on other investments on our website at www.whitesecuritueslaw.com.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

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