ARC New York City REIT – How to Recover your Losses
The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended ARC New York City REIT to investors.
ARC New York City REIT is a non-traded real estate investment trust that owns six real estate properties, including office and retail properties, located in New York City. The company closed its initial public offering in May 2015.
Unfortunately for investors, Mackenzie Capital, a secondary market for private placements, has just announced a tender offer for $13.01 per share. The original offering price of ARC New York City REIT is $25/share. This would mean a significant loss for investors.
According to Mackenzie, the REIT has an oversubscribed share repurchase program. “Repurchases are only processed biannually and 902,420 shares submitted for repurchase during 2016 were rejected.”
Risks of Non-Trade REITs
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 through FINRA Arbitration.
The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
If you suffered losses investing in American Realty Capital New York City REIT, The White Law Group may be able to help you. To speak to a securities attorney about the potential to recover your investment losses, please call 1-888-637-5510 for a free consultation. For more information, please visit www.whitesecuritieslaw.com.
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.