American Realty Capital Retail Centers of America
Are you concerned about your losses investing in American Realty Capital Retail Centers of America? If so, the securities attorneys of The White Law Group may be able to help you recover those losses through a FINRA arbitration claim against the brokerage firm or financial advisor that recommended the investment to you.
The White Law Group has handled a number of claims involving non-traded real estate investment trusts (REITs) like American Realty Capital Retail Centers of America.
In those claims, the firm has alleged, among other things, that REITs were (1) high-risk and unsuitable for our clients given their financial needs and investment objectives,
(2) that the risks of the investment were not fully disclosed to them, and
(3) that the brokerage firms that sold the investments failed to follow FINRA rules to perform adequate due diligence.
Tender Offer from MacKenzie Capital
MacKenzie Capital Management extended a tender offer to American Realty Capital Retail Centers of America investors on December 19th,“Now you can sell your American Realty Capital Retail Centers of America investment and regain control of your money. Right now, MacKenzie Capital Management, LP will pay you $5.50 per Share. Now you can do what you want with your money—move it to a more liquid investment.” Unfortunately for investors this would represent a significant loss on their investment.
As we told you in September, the proposed merger with American Finance Trust, Inc. (“AFT”) would not provide investors immediate liquidity. If the merger is completed, you will receive shares of AFT stock and cash of just $0.95 per share (a total of $10.26 based upon AFT’s estimated value).
AFT shares are not currently listed on any exchange and the company’s management has not proposed a plan to provide investors liquidity once the merger is completed.
In addition, as of June 30, 2016, 2.5 million share requests for redemption were unfulfilled and the shareholder redemption program was suspended in September, in light of the proposed merger.
Non-Traded REITs are complex products that involve a significant degree of risk and arguably unsuitable for many investors. Brokerage firms that overlooked suitability requirements or failed to disclose the risk when recommending American Realty Capital Retail Centers of America to clients, may be liable for losses.
If you invested in American Realty Capital Retail Centers of America or another non-traded REIT and would like to discuss your litigation options with a securities attorney, 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 Franklin, Tennessee.