American Realty Capital New York City REIT, a non-traded real estate investment trust sponsored by AR Global, has amended its tender offer in an effort to deter a Tel Aviv-based investment fund from purchasing shares. Comrit Investments 1 LP and ARC NYC REIT have been bidding up the price of the REIT’s shares since last month.
In its original unsolicited tender offer, Comrit offered to purchase up to 1.6 million shares of ARC NYC REIT common stock for $14.68 each. The REIT, in response to Comrit’s offer, launched a counter tender offer to purchase up to 1.9 million shares for $15.50 each. Both offers were set to expire on March 6, 2018.
Last week, Comrit increased its offer price to $16.02 per share and extended the expiration date to March 20, 2018.
In its latest amendment, ARC NYC REIT increased its purchase price to $17.03 per share and reduced the number of shares to 1.6 million. The offer is now set to expire on March 20th.
ARC NYC REIT has an estimated a net asset value per share of $20.26 as of June 30, 2017. Shares were originally sold for $25.00 each.
The ARC NYC REIT board previously recommended that stockholders not tender their shares in either offer. Comrit and its affiliates currently own approximately 45,000 shares of ARC NYC REIT common stock.
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 $772 million in investor equity, as of the third quarter of 2017, and owns six properties with an investment cost of $725 million, according to Summit Investment Research.