December 13, 2019 Comments (0) Blog, Current Investigations

New York City REIT Third Party Tender Offer

New York City REIT, Third Party Tender Offer

Concerned about investment losses in New York City REIT?

Have you suffered losses investing in New York City REIT? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

New York City REIT (formerly known as ARC New York City REIT) is a publicly registered non-traded real estate investment trust sponsored by AR Global. The REIT invests in properties located in the five boroughs of New York City, with a focus on Manhattan. The company closed its initial public offering in May 2015 and has raised a total of $760 million in investor equity, as of September 30, 2016.

On December 9, 2019, Mackenzie Realty Capital, Inc. extended an offer to purchase shares of New York City REIT, Inc. at a purchase price of $10.05/Share.

According to the offer letter, the REIT reportedly suspended the Share Repurchase Program (“SRP”) and payment of monthly cash distributions. “While suspension of the SRP should be lifted when the REIT resumes payment of distributions, no indication has be given as to when, or if, any of this might occur.”

The initial offering price of New York City REIT was $25.00/share. Unfortunately for investors, the REIT’s value has declined roughly 19% according to the REIT’s most recent valuation of $20.26/share as of June 30, 2019.

The Trouble with Non-traded REITs

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like New York City REIT, 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.

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs such as New York City REIT to these investors.

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.

If you have invested in New York City REIT 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.

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

 

 

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