ARC New York City REIT: Share Repurchase Program Changes

Investigating Potential Claims in ARC New York City REIT

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

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. The company closed its initial public offering in May 2015 and had raised a total of $764 million in investor equity, as of March 31, 2016. The company owns six properties valued at $785 million.

In April we told you about a tender offer from Mackenzie Capital, a secondary market for private placements, of just $12.88 per share of ARC New York City REIT. Shares were originally sold for $25.00 each.

According to Mackenzie Capital’s offer letter, the share repurchase program for the REIT is oversubscribed. Repurchases are only processed biannually and only 23% of requests were accepted in December, leaving 903,028 shares not repurchased.

More Bad News for Investors: Amendments to Share Repurchase Program

On June 8, 2017, the board of directors approved certain amendments to the Company’s existing share repurchase program (SRP).

Under the updated SRP the company will only be honoring redemptions for death and disability claims. This new SRP will become effective on July 14, 2017.

Risks of REITs

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.

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 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 ARC New York City REIT or another non-traded 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 Vero Beach, Florida.