Skip to content
The DI Wire
Click Here to Subscribe to Our Free Daily News Updates

American Realty Capital New York City REIT Launches Tender Offer to Deter MacKenzie

American Realty Capital New York City REIT Inc., a publicly registered non-traded real estate investment trust sponsored by AR Global, has launched a $6.5 million tender offer in response to a $6 million unsolicited tender offer made by MacKenzie Realty Capital Inc.

American Realty Capital New York City REIT Inc., a publicly registered non-traded real estate investment trust sponsored by AR Global, has launched a $6.5 million tender offer in response to a $6 million unsolicited tender offer made by MacKenzie Realty Capital Inc.

MacKenzie is offering to purchase up to 500,000 shares of ARC NYC REIT common stock for $12.04 each, while the REIT is offering to purchase up to 500,000 shares for $12.95 each. The expiration date of the MacKenzie offer is July 20, 2018, while the REIT’s offer expires on July 24, 2018

Shares of ARC New York City REIT were originally sold for $25.00 each and have an estimated net asset value per share of $20.26 as of June 30, 2017. MacKenzie’s offer price is 41 percent less than the REIT’s NAV per share, while the REIT’s offer price is 36 percent less.

Over the past few years, MacKenzie has launched three prior mini-tender offers for ARC New York City REIT common stock. The REIT’s board recommends that stockholders not tender their shares in either offer, as both are “well below” the company’s estimated NAV per share.

American Realty Capital New York City REIT invests in properties located in the five boroughs of New York City, with a focus on Manhattan. The company closed its offering in May 2015 and raised a total of $776 million in investor equity, as of the first quarter of 2018. The company owns six properties with an investment cost of $725 million, according to Summit Investment Research.

Based in Moraga, California, MacKenzie Capital Management has specialized in discounted real estate securities and asset management since its formation in 1982.

For more MacKenzie news, visit their directory sponsor page.