ARC New York City REIT – Letter to Investors
ARC New York City REIT is a non-traded real estate investment trust sponsored by AR Global and focused on properties located in the five boroughs of New York City, with a focus on Manhattan.
According to a letter to Shareholders on March 6, the Board announced they were suspending distributions as of March 1, 2017 “to enhance the company’s ability to execute on acquisitions, repositioning and leasing efforts related to the six properties owned by the company.”
The letter also announced the company’s plans to decrease the number of shares they were willing to purchase from shareholders in their recent tender offer. The company decreased the total number of shares that they were willing to tender from 1,600,000 to 140,000 shares. The price remained at $17.03/share, and the offer expired on March 20.
According to the REIT’s Board, the per share net asset value (NAV) as of June 2017 is $20.26 per share. The original offering price of ARC New York City REIT was $25.00/share.
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.
Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, 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 and to 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.
Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
If you have lost money in ARC New York City REIT at the recommendation of your broker and would like to speak to a securities attorney about the potential to recover your investment losses, 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.