March 12, 2018 Comments (0) Blog

American Realty Capital New York City REIT – Suspends Distributions

ARC New York City REIT

ARC New York City REIT announces changes in recent Tender Offer

Have you suffered losses investing in ARC New York City REIT? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses through FINRA Arbitration.

American Realty Capital New York City REIT, a publicly registered non-traded real estate investment trust sponsored by AR Global, invests in properties located in the five boroughs of New York City, with a focus on Manhattan.

According to recent SEC Filings, the board of ARC New York City REIT has suspended distributions. The board reportedly believes this change “better positions the company for future growth and a successful future liquidity event”.

The company said that it suspended distributions to enhance its ability to execute on acquisitions, and conduct repositioning and leasing efforts related to its properties. The suspension went into effect on March 1, 2018.

Shares were originally sold for $25.00 each and have a net asset value per share of $20.26 as of June 30, 2017.

The company expects that cash retained by the suspension will facilitate capital expenditures related to tenant improvements, new leases, lease renewals, and acquisitions in New York City at attractive cap rates.

Additionally, in February ARC New York City REIT announced some changes to its February 6, 2018, tender offer to purchase its shares. ARC NYC’s tender offer was in response to a third party tender offer filed in January 2018.

The REIT said that it would increase its purchase price per share from $15.50 to $17.03 and extend the tender offer through March 20, 2018.  The REIT said that the tender offer would be reduced from approximately 1.9 million shares to 1.6 million shares.

Are Non-traded REITs Suitable for you?

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Non–traded REITs, like ARC New York City REIT often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

If you suffered losses investing in ARC New York City REIT and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.