Healthcare Trust Inc. Shareholders Deserve Justice
Investors in Healthcare Trust Inc. (ARC Healthcare Trust II) have found themselves at the heart of a complex legal battle, and the White Law Group is determined to bring justice to those affected. We are currently investigating FINRA arbitration claims involving broker dealers who may have improperly recommended this investment to unsuspecting shareholders.
Regrettably, it appears that many financial advisors and brokerage firms who sold non-traded REITs like Healthcare Trust Inc. may have downplayed or misrepresented the risks and liquidity issues associated with these investments. As a result, investors have suffered significant losses.
Healthcare Trust Inc. (formerly known as ARC Healthcare Trust II) is a non-traded real estate investment trust (REIT) that aims to build a diversified portfolio of healthcare-related properties, including medical office buildings, seniors housing, and other healthcare facilities. However, it is important to note that Healthcare Trust Inc. is now closed to new investors.
This REIT, which was sponsored by American Realty Capital (now known as AR Global), was part of a commercial real estate empire established by investor Nicholas Schorsch. Unfortunately, this empire was embroiled in an accounting scandal a few years ago, casting doubts on the performance of American Realty Capital REITs. In fact, Hospitality Investors Trust Inc. (HIT REIT), another REIT associated with the empire, recently filed for Chapter 11 bankruptcy.
Disappointing Net Asset Value (NAV) per Share
Recently, the Board of Directors of Healthcare Trust Inc. provided an update on the Net Asset Value per share as of December 31, 2022. According to SEC filings on March 31, 2023, the REIT declared a new Net Asset Value of $14.00 per share. In comparison, previous NAVs per share were $14.50 as of December 31, 2020, $15.75 per share as of December 31, 2019, and $17.50 per share as of December 31, 2018. It is worth noting that the original price per share was $25.00.
Secondary Sales Price Indicates Losses for Investors
According to Central Trade and Transfer, a secondary market for non-traded REITs, shares of Healthcare Trust Inc. have recently been sold for as low as $3.75 per share. This alarming development indicates substantial losses for many investors who initially invested significant capital in the REIT.
Are Non-Traded REITs Suitable for You?
Non-traded REITs featured by top securities fraud attorneys, the White Law Group
Non-traded REITs are highly risky and complex investments that are not suitable for every investor. Before making recommendations to individual investors, brokerage firms are obligated to disclose all the risks associated with a particular investment. Recommendations should only be made if the investment aligns with the investor's age, objectives, experience, and tolerance for risk. To learn more, you can read our article on Are Non-Traded REITs a Safe Bet?
Brokerage firms that fail to conduct adequate due diligence on an investment or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration. It is no secret that high commissions often motivate unscrupulous financial advisors to sell these REITs, regardless of whether they meet the client's investment objectives and profile. Furthermore, the total commissions and expenses associated with non-traded REITs make it difficult for them to perform as well as the broader market.
Investigating Potential Lawsuits Involving Healthcare Trust Inc.
If you are an investor in Healthcare Trust Inc. (ARC Healthcare Trust II) and would like to explore your legal options, we encourage you to reach out to the securities attorneys at The White Law Group for a free consultation. Our nationally recognized firm specializes in securities fraud, securities arbitration, investor protection, and securities regulation/compliance. Since our establishment in 2010, we have handled over 700 FINRA arbitration cases, advocating for investors in all 50 states.
Our experienced team represents investors in various securities-related claims, including stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among others. With over 30 years of expertise in securities law, we are equipped to assist investors who have suffered losses in securities, investment, and financial business transactions. For additional information, please visit our website at whitesecuritieslaw.com.
To learn more about our investigation into Healthcare Trust Inc., you can refer to our article: Healthcare Trust Inc. (ARC Healthcare Trust II) Decrease in Value UPDATED
Tags: AR Global, AR Global Healthcare Trust Inc., non-traded REITs
