ARC New York City REIT – Investment Losses
The White Law Group continues to investigate the liability that FINRA registered brokerage firms may have for improperly recommending non-trade REITs like ARC New York City REIT to investors.
ARC New York City REIT is a publicly registered non-traded real estate investment trust sponsored by AR Global.
According to SEC Filings, the REIT has launched a $6.5 million tender offer in response to a $6 million unsolicited tender offer made by MacKenzie Realty Capital Inc.
As we told you on June 4, Mackenzie Realty Capital, Inc. extended an offer to purchase shares of ARC New York City REIT, Inc. at a purchase price of $12.04/Share. The REIT is offering to purchase up to 500,000 shares for $12.95/share.
The REIT values their shares at $20.26 as of June 30, 2017.
Update on May 1, 2019 – Secondary sales price
Currently, Central Trade & Transfer, a secondary market for alternative investments, is listing shares of ARC New York City REIT for just $12.90 per share. Unfortunately for investors, this sales price would represent a significant loss on their capital investment, as the original purchase price was $25.00 per share.
Recovery of Investment Losses
The White Law Group continues to receive numerous calls from investors who have suffered losses investing in AR Global REITs.
Non-traded REITS are considerably more complex and involve a high degree of risk than traditional investments such as stocks and bonds. 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. They must 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.
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 ARC New York City REIT, the securities attorneys at 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 the offices of 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.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.