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Written by 5:35 pm Blog, Current Investigations

ARC New York City REIT Lowers Net Asset Value (NAV)

ARC New York City REIT

Securities Investigation involving ARC New York City REIT

Have you suffered losses investing in ARC New York City REIT or another AR Global 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 is a non-traded real estate investment trust focused on properties located in the five boroughs of New York City, with a focus on Manhattan.

According to SEC filings on October 25, 2017, the board of American Realty Capital New York City REIT has unanimously approved an estimated net asset value per share of the company’s common stock of $20.26. The company’s previous NAV per share was $21.25 as of June 30, 2016, a decline of approximately 4.7 percent year-over-year. Investors originally paid $25.00 per share.

The valuation was based on an estimated fair value of the company’s assets less the estimated fair value of its liabilities, divided by 31.03 million shares of common stock outstanding.

Unfortunately for investors, Central Trade & Transfer, a secondary market for private placements, recently sold shares of ARC New York City REIT for just $12.00/share, which would represent a substantial loss for most investors.

Risks of Non-traded REITs

Non-traded REITS,  are complex and riskier than traditional investments, such as stocks, bonds and mutual funds. Often brokers don’t communicate the risks and liquidity problems associated with REITs to their clients.

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

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.

If your broker dealers fail to adequately disclose risks or make unsuitable investment recommendations, they can be held liable for investment losses.

If you are concerned about investment losses in ARC New York City REIT, The White Law Group may be able to help you. For a free consultation with a securities attorney about the potential to recover your losses, please call The White Law Group at 1-888-637-551.

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.


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