The investment fraud lawyers at the law firm of Meyer Wilson have represented numerous clients in recent years whose financial advisors sold them New York City REIT, formerly American Realty Capital New York City REIT, Inc. (ARC NYC REIT). Our firm is continuing to investigate misconduct arising from brokers’ sales of ARC NYC REIT to customers, including sales practice violations, unsuitability, failure to conduct proper due diligence, misrepresentations, and non-disclosure.
ARC NYC REIT purports to invest in properties located in New York City, particularly Manhattan. The company closed its offering in May 2015 and raised a total of $769.9 million in investor equity. At the time of the offering, the fund operated as a non-traded REIT, meaning that its shares did not trade on a public securities exchange. While many brokers convinced their customers that ARC NYC REIT was a safe and stable source of income, in reality the REIT was an incredibly risky, illiquid private placement. It never should have been sold to retail investors.
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For several years after the offering, the REIT kept investors in the dark about the true value of the REIT’s holdings. ARC NYC REIT reported rosy scenarios and inflated asset values to clients. This happened even as distributions were suspended and customers’ assets funds were effectively frozen – customers could not cash out, transfer their proceeds, or request a return of their principal investment.
In August 2020, ARC NYC REIT shares went public and started trading on the New York Stock Exchange under the ticker NYC. Shares crashed immediately upon going public. Even now, NYC trades at a loss of nearly 40 percent of its August 2020 IPO value. Many investors who purchased the REIT before the IPO have suffered losses of 80 percent or more.
If your broker sold you ARC NYC REIT, contact the experienced securities arbitration attorneys at the law firm of Meyer Wilson. All consultations are free of charge, and we get paid only if we recover money for you. We will never send you a bill or charge you a retainer.
With decades of experience, our firm has the experience, resources, and tenacity needed to tackle even the largest cases nationwide. Contact us today for a free case evaluation.
Recovering Losses Caused by Investment Misconduct.