May 19, 2020 Comments (0) Blog, Current Investigations, Securities Fraud

New York City REIT Investment Losses

New York City REIT Investment Losses

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

According to filings with the SEC on March 31, 2020, the negative effects of the Covid-19 global pandemic on the economy includes the closure or reduction in activity for many retail operations such as some of those operated by the REIT’s tenants. The REIT notes that the financial stability and overall health of its tenants is critical to the Company’s business.

This has reportedly  impacted the ability of some of the company’s tenants to pay their monthly rent either temporarily or in the long term. The REIT reports it has already experienced delays in rent collections in the month of April.

Further the  REIT reported as of May 13, 2020, that it collected 73% of April rents due, including 77% from office tenants and 39% from retail tenants.

The REIT noted that it entered into rent deferral agreements with tenants on rents totaling approximately 9% of total April rent, in which certain tenants will be able to defer approximately 30% of their April, May, and June 2020 rents until the first half of 2021.

Secondary Sales Price Suggests Losses for Investors

Unfortunately for investors, Central Trade & Transfer, a secondary market for private placements, is currently listing shares of New York City REIT for $10.00 per share. That’s significantly less than the original purchase price of $25.00 per share. The estimated net asset value per share is $20.26 as of June 30, 2019.

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 New York City REIT and other AR Global REITs.

If you have lost money in 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. For more information on the firm, please visit the website at www.whitesecuritieslaw.com.

 

 

 

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