National Healthcare Properties, a nontraded real estate investment trust that traces its origins to the empire of former nontraded REIT czar Nicholas Schorsch, is scheduled to begin trading on the Nasdaq this week. The listing, expected on April 22 under the ticker NHP, marks a significant milestone for a vehicle that has been illiquid since its inception in 2012.
The REIT, which owns a portfolio of senior housing communities and outpatient medical facilities across the United States, filed for an initial public offering of 38.5 million shares of its Class A common stock. According to a company statement released last week, the anticipated IPO price range is $13.00 to $16.00 per share. Reuters reported that the New York-based company is targeting a valuation of roughly $1.1 billion and could raise as much as $616 million.
NHP was originally part of a series of nontraded REITs and business development companies managed by American Realty Capital, a private partnership led by Schorsch. Schorsch, once a billionaire from selling illiquid REITs through financial advisors, stepped away from management after an accounting issue surfaced at one of his companies in 2014. His former partner, Brian Block, was later convicted of securities fraud and served prison time related to that accounting matter.
The listing comes at a challenging time for illiquid alternative investments seeking public market exits. Shares of such vehicles have frequently traded at steep discounts to their last published net asset values. For instance, the $4.3 billion Bluerock Private Real Estate Fund, which began trading on an exchange in December under the ticker BPRE, closed its first day at $14.70 per share—nearly 40% below its NAV of $24.36 on December 12. As of Tuesday, BPRE was trading at $16.29 per share.
NHP is betting on demographic tailwinds from an aging U.S. population to support demand for senior housing and healthcare real estate. According to Reuters, the IPO launch follows the well-received debut of Janus Living, another senior housing REIT, signaling renewed investor interest in the sector. The broader market for healthcare-related real estate has also seen product innovation, such as Milliman's recent launch of two ETFs tied to healthcare cost inflation benchmarks.
For financial advisors who placed clients in NHP shares during its nontraded phase, the listing offers a potential liquidity event—though the final trading price may diverge from the IPO range. The performance of similar listings, such as Bluerock, underscores the risk that public market valuations can differ sharply from prior NAV estimates. Advisors should monitor the stock's opening price and subsequent trading volume to assess market reception.
The Schorsch legacy continues to cast a shadow over the nontraded REIT space. In a separate case, former GWG and Beneficient chairman Bradley Heppner was convicted in a $1 billion securities fraud scheme, highlighting ongoing regulatory scrutiny of illiquid alternative investments. The SEC has also been active in pursuing fraud in the alternative investment space, as seen in allegations of a $26 million fraud by Reign Financial and Berone Capital.
As NHP prepares to trade, the broader market for nontraded REIT IPOs remains mixed. While some listings have struggled, the success of Janus Living suggests that well-positioned healthcare real estate can attract investor demand. The coming days will reveal whether NHP can buck the trend or follow the path of other illiquid vehicles that have seen their public market values fall short of expectations.
