ARC New York City REIT – Securities Investigation
The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs such as ARC New York City REIT to its investors.
American Realty Capital New York City REIT Inc is a publicly registered non-traded real estate investment trust sponsored by AR Global. ARC New York City REIT invests in properties located in the five boroughs of New York City, with a focus on Manhattan. The company closed its initial public offering in May 2015 and has raised a total of $760 million in investor equity, as of September 30, 2016.
The company owns six properties valued at $785 million, and in October 2016, the company’s board approved an estimated net asset value of $21.25 per share. The initial offering price in 2013 was $25.00.
Unfortunately for investors, Central Trade & Transfer, a secondary market for private placements, is currently listing shares of ARC New York City REIT for $11.02 per share. That’s significantly less than the original purchase price of $25.00 per share.
Risks of Non-Traded REITs
Non-traded REITS, compared to traditional investments, such as stocks, bonds and mutual funds, are considerably more complex and involve a high degree of risk. Unfortunately, many investors were not made adequately aware of the risks and liquidity problems associated with REITs.
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
If your broker dealers fails to adequately disclose risks or make unsuitable investment recommendations, they can be held liable for investment losses.
Concerned about investment losses in ARC New York City REIT? If so, the securities attorneys at The White Law Group may be able to help you recover your losses. You may be able to file a FINRA Arbitration claim against the brokerage firm that sold you the investment. Please call The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.