Soreide Law Group has been contacted by investors who suffered financial losses through recommendations by their broker/dealers or financial advisors in the real estate investment trust, NYC REIT, formerly known as American Realty Capital New York City (NYSE: NYC). NYC REIT owns commercial real estate within the five boroughs of New York.
NYC shares were listed on the New York Stock Exchange on August 18, 2020. The stock dropped over 40% on its first day of trading. Just prior to listing on the exchange, the company enacted a 2.43 to 1 reverse stock-split creating even more losses. Many investors who purchased NYC REIT before July of 2020, could be facing a 50% loss or more from their original investment.
The majority of investors purchased the NYC REIT prior to the listing on the stock exchange as a non-traded REIT. Many investors, especially those with moderate to conservative portfolios or retirees, may not realize, or have not been told by their broker/dealers that alternative investments such as NYC REIT, or other non-traded REITs, are highly risky and speculative investments. These investments are also high commissioned products.
NYC REIT was marketed to clients between 2013 through 2017 as American Realty Capital New York City REIT, Inc. It was sold as a non-traded REIT investment by broker/dealers nationwide. The original price was $25.00 per share and as recently as July of 2020 was still on investor monthly account statements at a sponsor stated list price of $20.26 per share.
Investors who have suffered losses in NYC REIT may be able to recover their losses through a FINRA arbitration. Broker/dealers are responsible for conducting the proper due-diligence on all investments recommended to their clients. They may be liable for client losses due to lack of due-diligence.
If you’ve suffered losses due to your broker/dealer or financial advisor recommending NYC REIT, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee basis and we represent our clients nationwide before FINRA.
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