NorthStar Healthcare Income: Merger & Liquidation

NorthStar Healthcare Income to be Acquired by Welltower Inc.

Have you suffered investment losses in NorthStar Healthcare REIT? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution Claim against the brokerage firm that sold you the investment. 

Welltower Inc. (NYSE: WELL) has agreed to acquire NorthStar Healthcare Income Inc., a non-listed real estate investment trust specializing in senior housing, in an all-cash transaction valued at approximately $900 million, according to the DI Wire. NorthStar shareholders will reportedly receive $3.03 per share, exceeding the company’s net asset value of $2.96 per share as of June 30, 2024. The merger was unanimously approved by NorthStar’s board.

The acquisition, expected to close in Q2 2025 pending shareholder approval, will add 40 senior housing communities to Welltower’s portfolio. Welltower plans to allocate these assets to its newly announced funds management business.

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 Healthcare REIT The firm has represented numerous investors in claims against their brokerage firms to recover non-traded REIT investment losses.    

According to the DI Wire last January, Comrit Investments 1 LP has extended an unsolicited tender offer for shares of NorthStar Healthcare Income, Inc. The company was offering to purchase up to 9,350,000 shares of the REIT’s common stock for $1.01 per share. 

NorthStar Healthcare REIT NAV Continues to Decline   

NorthStar Healthcare’s Net Asset Value has continued to decline as seen below. The current NAV is estimated at $2.96per share, as of June 30th, 2024, according to filings with the SEC.    

Effective Date -Estimated Value 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

How do I recover my money from NorthStar Healthcare Income REIT?   

Non-traded 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.    

Many investors are not fully aware of the problems and risks associated with non-traded REITs before purchasing them.    

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

Central Trade & Transfer, a secondary market for non-traded REITs, has recently sold shares of NorthStar Healthcare for just $1.01 per share. This may indicate a significant loss to investors, as the original offering price was $10.00 per share.    

Risks of Non-traded REITs & Recovery Options   

Aside from the lack of liquidity, another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. Brokers are obliged to make investment recommendations consistent with their client’s risk tolerance, net worth, investment objectives and market experience. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.    

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.   

The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended NorthStar Healthcare Income REIT to investors. The firm has represented numerous investors who have lost money investing in NorthStar and other non-traded REITs.   

If you suffered losses investing in NorthStar Healthcare Income Inc. 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 Seattle, Washington.