The board of directors of American Realty Capital New York City REIT II Inc., a publicly registered non-traded real estate investment trust, terminated the company’s initial public offering, effective immediately, according to a filing with the Securities and Exchange Commission. In connection with the termination, the board intends to dissolve and liquidate the company.
The company indicated that it had not yet accepted subscriptions for the minimum amount of offering proceeds, and cited the “current regulatory and market conditions affecting the direct investment industry, particularly the unclear impact of the proposed Department of Labor fiduciary standard and the upcoming valuation measures prescribed by FINRA’s 15-02 directive.”
The REIT’s escrow agent said it will promptly return all subscription payments received, plus each investor’s pro rata share of the interest earned on such funds.
Last month, AR Capital, the REIT’s sponsor, said that it will stop offering and selling new investment products after December 31st. which includes American Realty Capital New York City REIT II. Realty Capital Securities, the REIT’s dealer manager, also suspended the sales activities it performs for its initial public offering. Cetera and its broker-dealer network suspended sales, as well.