American Realty Capital New York City Real Estate Investment Trust (REIT) Lawsuit.
Pitched as a way to provide investors with income and appreciation, ARC NYC REIT is promoted as “high-quality commercial real estate located within the five boroughs of New York City, particularly Manhattan.” However, NYC REIT is currently a non-traded REIT. Because it does not currently trade on an exchange, ARC NYC REIT is even less liquid than other REITs that trade on open exchanges. To make matters worse, investors believed that returns would be greater than 10% annually. In addition to stopping distributions, the value of each share has quickly dropped to less than half of the initial offering price in less than 2 years.
Similar to American Finance Trust, Inc. (AFIN) and VEREIT, ARC NYC REIT is another stark reminder of how disastrous non-traded REITs can be for investors. Eerily reminiscent of AFIN, we believe that ARC NYC REIT has published overvalued share prices. When ARC NYC REIT / New York City REIT goes public and commences trading on the New York Stock Exchange (“NYSE”), it may produce the same results as AFIN: a dramatic decrease in share prices.
Thus, the securities law firm of Peiffer Wolf Carr Kane & Conway (“Peiffer Wolf”) has begun another investigation into American Realty Capital (“ARC”). Specifically, Peiffer Wolf is investigating any and all brokers and advisors who recommended ARC NYC REIT / New York City REIT to investors. If you invested in NYC REIT, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 of by filling out a Contact Form on this website.
According to filings with the SEC, the board of New York City REIT Inc. approved a plan to list the company’s common stock on the NYSE under the ticker symbol “NYC.” It is anticipated that NYC REIT will start listing shares on August 18, 2020. New York City REIT (formerly ARC New York City REIT) is sponsored by AR Global.
Reverse Stock Split: The board of New York City REIT approved a 2.43-1 reverse stock split.
Have you suffered losses investing in ARC NYC REIT / New York City REIT? The broker misconduct attorneys at Peiffer Wolf will fight to recover your losses.
The initial public offering (“IPO”) price of ARC NYC REIT / New York City REIT was $25 per share, but that valuation has plummeted. In less than 2 years, the price per share dropped below $12. To make matters worse, the board suspended distributions. Then, the board authorized a reverse stock split. The attorneys of Peiffer Wolf believe that the next assault on investors will take place when ARC NYC REIT / New York City REIT becomes publicly traded on August 18, 2002.
Brokers and financial advisors are often drawn to recommending REITs because of the high commissions associated with the transaction. These alternative investments are generally only suitable for savvy investors who are wealthy and sophisticated. These complex investment products are often highly illiquid, meaning investors may be stuck and not able to access their money. Moreover, many illiquid REITs cannot be freely sold in the marketplace. All too often, investors trying to exit or access their money are faced with two bad options: sell the shares directly back to the sponsor at a heavily discounted price or sell the shares for pennies on the dollar through the limited secondary markets.
If you believe you were a victim of investment fraud or broker misconduct, it is imperative to take action. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors.
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