ARC New York City REIT – Share Repurchase Program Suspended
On Tuesday, American Realty Capital New York City REIT, Inc. commenced a tender offer to purchase up to 1,935,484 shares of the Company’s common stock, for $15.50 per share, or $30.0 million in the aggregate. The Company’s board of directors has suspended the Company’s share repurchase program and will reportedly not accept any repurchase requests under the SRP while the offer is pending.
Last month we told you about a $23.5 million unsolicited tender offer to purchase shares of ARC New York City REIT made by Comrit Investments 1 LP. The private real estate investment fund based in Tel Aviv, Israel, is offering to purchase 1.6 million shares for $14.68 per share.
Shares of ARC New York City REIT were originally sold for $25.00 each, although the current estimated net asset value per share is $20.26 as of June 30, 2017. According to reports, the ARC NYC REIT board recommends that stockholders not tender their shares in either offer. Both offers will expire on March 6, 2018.
Update on September 13, 2019
Unfortunately for investors, Central Trade & Transfer, a secondary market for private placements, is currently listing shares of ARC New York City REIT for $12.80 per share. That’s significantly less than the original purchase price of $25.00 per share.
Non-Traded REITs are Risky
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.
The White Law Group continues to investigate potential securities fraud claims on behalf of investors involving ARC New York City REIT and other AR Global REITs.
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 Franklin, Tennessee.