New York City REIT NYC
Haselkorn & Thibaut, a national investor law firm, is investing the sales of New York City REIT to investors to recover losses.PALM BEACH, FL, USA, October 23, 2020 /EINPresswire.com/ -- Haselkorn & Thibaut, P.A. announced today that it is investigating LP Financial, LLC and other brokerage firms that sold NYC REIT, formerly known as American Realty Capital New York City (NYSE: NYC), a real estate investment trust, which owns a portfolio of commercial real estate located within the five boroughs of New York.
New York City REIT, the real estate investment trust also known as American Realty Capital New York City and sponsored by AR Global, listed on the New York Stock Exchange Under the symbol NYC dropped 41% on the first day of trading and has declined further since that first day of trading. For the investors that purchased NYC REIT as a non-traded REIT, the losses are likely substantially more.
Haselkorn & Thibaut (InvestmentFraudLawyers.com) have started an investigation into the financial advisors and broker-dealers who sold New York City REIT to investors. Investors are encouraged to call 1 888-628-5590 for a free consultation and portfolio review.
NYC REIT's Non-Traded Past Problems
Most investors purchased the NYC REIT prior to the listing on the exchange as a non-traded REIT. Non-Traded REITs are illiquid and typically must be sold in the secondary market substantially below the NAV value reported by the investment sponsor. In this instance, investors selling in the secondary market prior to the recent IPO were often selling for 40% or less from the original cost of the non-traded security.
The investment was marketed between 2013-2017 as American Realty Capital New York City REIT, Inc. and sold as a non-traded REIT investment by numerous independent broker-dealer firms across the United States. It was originally sold at $25.00/share and even as recently as July 2020 was still appearing on investor monthly account statements at a sponsor stated list price of $20.26/share.
Notwithstanding the sponsor stated NAV pricing level, the previous tender offers as well as the secondary market (as recent as last month in July 2020) reflected more significant capital losses for investors as it was trading closer to the $9.00 per share range (reflecting a loss of original investment capital for investors paying $25.00/share of more than -60%).
In March 2019 there was a name change from American Realty Capital New York City REIT (often referred to as ARC NYC REIT) to New York City REIT, Inc. The decision to drop the American Realty or ARC moniker may well have been intended in an effort to try to distance this investment from the accounting fraud and SEC scandals related to Nick Schorsch, ARC (American Realty Capital), and other negative related news events from just a couple of years ago.
It is believed that leading up to the recent August 2020 IPO, there was a reverse stock split (of 2.43 shares for 1 share), which reduced the overall number of outstanding shares. While this may have been partially motivated by an intent to try to help prop up the stock price through the IPO, it is unclear what (if any) material impact it is truly having for investors. Just prior to listing on the exchange, the board approved the reverse stock split. For many investors who purchased NYC REIT prior to July 2020, they could be looking at a 50% loss or more from their original principal investment.
Investors are encouraged to call us at 1 888-628-5590 for a free confidential consultation on recovery losses from NYC REIT. Haselkorn & Thibaut is a national law firm dedicated to protected investors and helping them recover losses. The sole purpose of this notice is to investigate potential broker-dealer sales practices and supervision issues related to transactions in New York City REIT. If you have information related to these issues please contact our office at 1 888-628-5590 or email us directly at email@example.com. For more information related to New York City REIT, please see below, or visit our website.
Haselkorn & Thibaut, P.A.
email us here