Comrit Investments 1 LP, a Tel Aviv-based investment fund, has launched an unsolicited tender offer to purchase up to 1.6 million shares of New York City REIT Inc., a publicly registered non-traded real estate investment trust formerly known as American Realty Capital New York City REIT. Comrit has offered to pay $13.61 per share in the offer that expires on June 21, 2019.
New York City REIT’s most recent net asset value is $20.26 per share, as of June 30, 2018, and shares originally sold for $25.00 each.
Comrit and its affiliates currently own approximately 186,433 shares of REIT common stock, or approximately 0.6 percent of the outstanding shares. If all shares in the current offer are tendered, they will pay nearly $21.8 million and own nearly 5.8 percent of the outstanding shares.
New York City REIT, sponsored by AR Global Investments LLC, suspended cash distributions last March in order to “enhance its ability to execute on acquisitions and conduct repositioning and leasing efforts related to its properties.” The company’s share repurchase program is also currently suspended.
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 after raising a total of $776 million in investor equity and owns seven properties with an investment cost of $774 million, as of the fourth quarter of 2018.