American Realty Capital New York City REIT Inc., a non-traded real estate investment trust sponsored by AR Global, has launched a $30 million tender offer in response to the recent $23.5 million unsolicited tender offer made by Comrit Investments 1 LP, a private real estate investment fund based in Tel Aviv, Israel.
Last week, Comrit offered to purchase up to 1.6 million shares of ARC NYC REIT common stock for $14.68 each, and now ARC NYC REIT is offering to purchase up to 1.9 million shares for $15.50 each. The ARC NYC REIT board recommends that stockholders not tender their shares in either offer, which both expire on March 6, 2018.
ARC NYC REIT has an estimated a net asset value per share of $20.26 as of June 30, 2017. The price in the Comrit offer is 28 percent less than the NAV per share, and the price in the REIT’s offer is 23 percent less. Shares were originally sold for $25.00 each.
The ARC NYC REIT board suspended the company’s share repurchase program and will not accept any repurchase requests during the pending tender 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 continues to raise capital through its distribution reinvestment plan and shares repurchase program. The company 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.