Let’s be honest—a lot of investors trusted their financial advisors when they were sold on NorthStar Healthcare Income REIT. If that sounds familiar, you’re not alone. Advisors often positioned it as a stable, income-producing investment in healthcare real estate. On the surface, that sounded reassuring. Healthcare? Steady. Real estate? Reliable. Monthly income? Even better.
But what many investors didn’t hear was the other side of the story—the side packed with red flags. We’re here to talk about what those red flags looked like, why they matter, and what you can do now if you’ve suffered losses.
Red Flags Advisors Shouldn’t Have Ignored
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There were warning signs that financial professionals either missed or failed to explain clearly. Some of these include:
- High upfront commissions: Roughly 10% of your investment might have gone to fees before a dollar even started working for you.
- Lack of liquidity: Shares couldn’t be easily sold. You were often stuck with them, regardless of need.
- Suspended distributions: In 2019, monthly payments stopped. For many retirees, that was devastating.
- Declining value: Shares that originally cost over $10 eventually sold for just $3.03 in the 2025 merger.
- Illusion of income: Dividends often came from your own capital, not actual profits.
An advisor’s role isn’t just to suggest products. It’s to recommend options that match your needs, explain the risks, and disclose any potential downsides. If that didn’t happen, you may have a valid complaint.
Did This Investment Fit You?
Let’s talk suitability. That’s not a buzzword—it’s the core of a financial advisor’s responsibility. An advisor recommending NorthStar Healthcare Income REIT to someone who needed income, security, or flexibility may have made a mistake.
Here’s a simple checklist:
| Did your advisor… | Yes/No |
|---|---|
| Explain the high fees up front? | |
| Discuss the lack of a public market for your shares? | |
| Describe the risk of losing principal? | |
| Make sure the investment aligned with your goals? | |
| Highlight that distributions could be suspended? |
If you’re checking more “No” than “Yes,” that’s a problem. Advisors must know their clients, understand the product, and make sure the two line up.
What We’re Hearing from Investors
At Haselkorn & Thibaut, we’ve had conversations with many investors who say their advisors made promises that didn’t hold up. Phrases like “safe,” “consistent income,” or “low risk” came up often.
But when the dust settled, those same investors were left with suspended dividends and a share value that plunged more than 70%. Many say they didn’t fully understand the risks or weren’t warned about the fees and liquidity issues. That’s not fair—and it might be grounds for recovery.
What You Can Do About It
If you believe your advisor led you into this investment without full disclosure, you may have the right to pursue a claim. This isn’t about blame for the sake of it—it’s about accountability.
You might be eligible for compensation through FINRA arbitration. It’s a process specifically for resolving disputes between investors and brokers or brokerage firms. We’ve helped many clients in similar situations, and the key is acting quickly.
Here’s how to start:
- Gather your records. Account statements, offering materials, and emails with your advisor.
- Write down your timeline. When did you invest? What were you told?
- Call us for a free consultation. We’ll review your case, discuss options, and explain next steps.
Why Time Matters
Statutes of limitations apply. That means waiting too long could shut the door on your claim. If you even suspect something wasn’t right, don’t wait until it’s too late.
Final Thoughts from Our Team
Investing should build your future, not drain your savings. If your advisor painted a sunny picture and left out the storm clouds, that’s a disservice. You trusted their expertise. Now, it may be time to hold them accountable.
Call Haselkorn & Thibaut today at 1-888-885-7162 . The consultation is free, and you pay nothing unless we recover funds for you. We’re here to listen, advise, and help you move forward. Let’s put the power back in your hands.
