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Investment Approach

Investment
Approach

REITs at a Glance

A real estate investment trust, or REIT, is a company with the ability to pool the money of many investors and create a diversified, professionally-managed portfolio of commercial real estate assets. REITs are legally required to pay 90 percent of taxable income as dividends and, therefore, have the potential to provide attractive streams of income.  The United States Congress created REITs in 1960 to make investments in large scale, income producing real estate accessible to smaller investors. Investors in a professionally managed REIT may benefit from greater diversification through a portfolio of properties, rather than a single building and the benefits from an experienced real estate investment team.

How Non-Traded REITs Work

Potential Benefits of Investing in Commercial Real Estate through Non-Traded REITs

Given the historic uncertainty of the financial markets, we believe adding an investment in commercial real estate to a traditional investment portfolio may provide investors with a number of potential benefits including:

  • Capital preservation
  • Reduced portfolio volatility
  • Increase portfolio diversification
  • Provide an alternative source of cash flow1
  • Lower portfolio risk through reducing the correlation across major asset classes
  • Help hedge against potential inflation

An investment in commercial real estate through non-traded REITs does not guarantee that the benefits described above will be realized. We set the offering price of our shares arbitrarily. This price is unrelated to the net book value of our assets or to our expected operating income. If we raise substantially less than the maximum offering, we may not be able to acquire a diverse portfolio of investments and the value of your shares may vary more widely with the performance of specific assets. Investing in non-traded REITs includes various risks including but not limited to unfavorable market conditions, loss of principal and limited liquidity. 1) There is no guarantee of distributions. Distributions have been paid and may continue to be paid from sources other than cash flow from operations, including offering proceeds, borrowings or sales of assets and distributions may exceed earnings.

This website is neither an offer to sell nor a solicitation of an offer to purchase any NorthStar Investment Program. NorthStar Investment Programs are only offered by means of a prospectus. This material must be read in conjunction with a prospectus in order to understand fully all the implications and risks of an offering of securities to which it relates. Neither the Securities and Exchange Commission nor any state securities regulator has passed on or endorsed the merits of this offering. Any representation to the contrary is unlawful. Consult the prospectus for suitability standards in your state. NorthStar/RXR is not available to residents of OH and PA. Securities offered through NorthStar Securities, LLC, member FINRA/SIPC, an affiliate of NorthStar/RXR, the dealer manager for NorthStar/RXR. NorthStar Securities, LLC is doing business as NorthStar BD Securities, LLC (DE) in the following states: FL, GA, TX and WA.

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