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American Realty CapitalNew York Recovery REIT, Inc.

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING ISMADE ONLY BY THE PROSPECTUS. THIS SALES AND ADVERTISING LITERATURE MUST BE READ IN CONJUNCTION WITH THE PROSPECTUSIN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. ACOPY Of THE CURRENT PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTIONS WITH THIS OFFERING. No offering is made exceptby a prospectus filed with the Department of Law of the State of New York. Neither the Attorney-General of the State of New York nor any other state or federalregulator has passed on or endorsed the merits of this offering or these securities or confirmed the adequacy or accuracy of the prospectus. Any representation to thecontrary is unlawful. American Realty Capital New York Recovery REIT, Inc. is subject to higher fees and charges than some traditional investments.

The properties pictured herein are not owned by the program or any affiliate and are included solely as an illustration of New York City real estate.

March 2012

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There are risks associated with an investment in American Realty Capital New York Recovery REIT, Inc. The following is a summary of these risks. A more detailed description of the associated risks is found in the prospectus.

■ We have a very limited operating history and have no established financing sources. This offering is a blind pool and you may not have the opportunity to evaluate investments prior to their purchase or prior to your investment in our common stock, which makes this investment more speculative.

■ No public market currently exists for shares of our common stock, nor may a public market ever exist and our shares are illiquid. There are limitations on ownership and transferability of our shares.

■ We are obligated to pay substantial fees to our advisor and its affiliates, including fees payable upon sale of properties, which may result in our advisor recommending riskier or more speculative investments. We are depending on our advisor to select investments and conduct our operations. Adverse changes in the financial condition of our advisor could adversely affect us.

■ If we, through our advisor, are unable to find suitable investments, we may not be able to achieve our objectives or pay distributions. If we are unable to raise substantial funds, we will be limited in the number and types of investments, our ability to diversify our investments will be limited.

■ Properties may be adversely affected by the current economic downturn, as well as economic cycles and risks inherent to the New York market. The offering may be subject to risks associated with the significant dislocations and liquidity disruptions currently occurring in the United States credit markets.

■ There are substantial conflicts among the interests of our investors, our interests and the interests of our advisor, sponsor, dealer manager and our respective affiliates regarding compensation, investment opportunities and management resources.

■ Our investment objectives and strategies may be changed without shareholder consent.

■ There are significant risks associated with maintaining a high level of leverage as permitted under our charter. If we incur substantial debt, it may hinder our ability to pay distributions to our shareholders or could decrease the value of your investment if income on, or the value of, the property securing the debt falls.

■ We may be unable to pay or maintain cash distributions or increase distributions over time. Our organizational documents permit us to pay distributions from unlimited amounts of any source. Such distributions could reduce the cash available to us and could constitute a return of capital to shareholders.

■ Our share repurchase program is subject to numerous restrictions, may be cancelled at anytime and should not be relied upon as a means of liquidity.

■ We may fail to qualify or continue to qualify to be treated as a REIT for tax purposes.

■ Our dealer manager has not conducted an independent review of this prospectus.

■ We may be deemed to be an investment company under the Investment Company Act and thus subject to regulation under the Investment Company Act.

Risk FactorsNY Recovery REIT

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NY Recovery REIT

“There is no better time to consider an investment in New York City real estate than now. Our City, the most vibrant and durable financial capital on the globe, is supply-constrained, having seen no net additions to office and retail space inventory in the last 20 years. At the same time, prices and rents for high quality commercial real estate have fallen as much as 50% since Fall 2007. A confluence of factors in the economy and the capital markets has disproportionately impacted New York City and created a “perfect storm” for the investor who seeks to buy real estate assets at fair value, with strong improving current returns and the opportunity for value increases as markets continue to stabilize. Our New York Recovery REIT gives the individual investor a direct, “bricks and mortar opportunity” to participate in this recovery.”

— Nicholas S. Schorsch, Chairman & CEO

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Acquisition EnvironmentNY Recovery REIT

Property owners under pressure– Rising vacancy rates– Falling rents– Rising cap rates– Too much debt– Upcoming debt maturities

Lenders under pressure– Falling property valuations– Increased borrower defaults– Regulatory intervention– Looming debt maturities

“Crisis Creates Opportunity”

Over $1.4 trillion of commercial real estate debt scheduled to mature in 2009-2013– Debt maturities will be a catalyst for buying opportunities

The “Perfect Storm” in Commercial Real Estate

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Acquisition EnvironmentNY Recovery REIT

*Unlike many other real estate companies, management will not be distracted by and shareholders will not be burdened with past acquisitions.

The current acquisition environment has similarities to the early 1990sfollowing the aftermath of the S&L crisis.– Many individual investors missed out on the commercial real estate buying opportunities

of the early ‘90s.

We believe New York Recovery REIT provides an opportunity for individual investors to participate in this real estate cycle– Professional management– Public company reporting– No legacy assets*– Buying quality real estate in a supply constrained market– Buy low and sell high strategy

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Focus on New York CityNY Recovery REIT

As an island, Manhattan is a supply constrained real estate market.– Total office supply in Manhattan has actually

declined over the last 18 years– Very limited land for new development in

Manhattan

New York City, the “financial capital of the world.”– If it were a country, it would have the 17th largest

GDP in the world.– Durable office market has weathered economic

downturns, market calamities, and terrorist attacks, each time not simply recovering but becoming stronger

– Demand for office space has persistently grown along with rents over the long term


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New York City contains over 400 million square feet of office space– More than Chicago, Boston, Los Angeles, San Francisco, Philadelphia, Dallas, Atlanta, and

Denver combined– Over 200 million square feet just in Midtown Manhattan (approximately a 3 square mile area)

400 million square feet

360 million square feet

Source: Cushman & Wakefield Research

Data refer to the central business district

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Competitive Advantages From Focused Strategy

Geographic focus

Real estate is a local business

Better access to deals

Significant market

knowledge*

Operating and investment

results

* Based on the long term historic experience of the management team, and Michael Happel specifically, there is over 20 years of specific experience in analyzing the New York real estate market.

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NY Recovery REIT

Acquire New York City real estate– Institutional quality office and retail properties in Manhattan– 80% occupancy or greater– Conservative financing strategy

(Target: 40-50% LTV)*

Capitalize on cyclical buying opportunity– Buy from distressed owners or lenders– Acquire quality real estate at significant discount to replacement cost,

at or below current market rents– Joint venture with owners and institutions in need of capital

Investment Strategy

* Up to 75% LTV is permitted

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NY Recovery REIT

Maximize total returns to shareholders– Combination of current yield and appreciation

Realize significant potential increases in value as the markets recover– Lease up to stabilized levels– Rent growth consistent with historical mean– Cap rate compression consistent with historical averages

Create a liquidity event for shareholders– Targeted liquidity event within 3 to 5 years after the offering period

Investment Strategy

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No Net Additions to Supply in 20 YearsNY Recovery REIT

Manhattan Office Market — Existing Office Space400.2 Million Sq.Ft.

392.8 Million Sq.Ft.

Source: Cushman & Wakefield Research, 2011 data through Fourth Quarter

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Long-Term Growth in DemandNY Recovery REIT

Sources: US Bureau of Labor Statistics, Cushman & Wakefield Research, 2011 data through Fourth Quarter

NYC Employment Trends

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Long-Term Rental Rate IncreasesNY Recovery REIT

Manhattan Office MarketAsking Rents

$20

$30

$40

$50

$60

$70

$80

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Dol

lar (

$) p

er S

quar

e Fo

ot

+93.9%

-22.5%

+84.6%

-22.67%


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Normalized Vacancy: 6-8%

Vacancy Currently Above Long-Term AverageNY Recovery REIT

Manhattan Office MarketVacancy Rate18.5%

3.5%

9.1%

5.3%


11.6%

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Normalized Cap Rate: 5-6%

Cap Rate TrendsNY Recovery REIT

3%

4%

5%

6%

7%

8%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Midtown Class A Cap RatesWeighted Overall Cap Rates

7.58%

3.55%


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Economic RecoveryNY Recovery REIT

Source: US Bureau of Labor Statistics, 2011 data through Fourth Quarter

‐60.0

‐40.0

‐20.0

0.0

20.0

40.0

60.0

80.0

4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11

NYC Job Gain / Loss (000's)

‐2500

‐2250

‐2000

‐1750

‐1500

‐1250

‐1000

‐750

‐500

‐250

0

250

500

750

4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11

U.S. Job Gain / Loss (000's)

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Offering Size: $1.5 billion(~$1.7 billion including Distribution Reinvestment Plan)

Share Price: $10.00 per share

Distributions Per Share: 6.05% annually (paid monthly)

Minimum Investment: $2,500May vary by state. See Prospectus for details.

Investor Suitability:$70,000 gross income and $70,000 net worth; or $250,000 net worthMay vary by state. Net worth is exclusive of home, furnishings and autos. Further, certain states recommend that investors should invest no more than 10% of their liquid net worth in REITs, real estate investment programs, or other similar programs. (Including, but not limited to AL, CA, IA, KS, KY, MA, MI, MO, MS, OH, OR, PA, TN, WA – please consult prospectus)

DRIP: Available at $9.50 per share

Share Redemption Plan:(1)

92.5% after one year95.0% after two years97.5% after three years100.0% after four years(Percentage of purchase price, see prospectus for details)

Common Stock Offering TermsNY Recovery REIT

(1) During any 12-month period we will not repurchase in excess of 5% of the shares outstanding as of December 31st of the previous year. We will also limit the amount spent to repurchase shares in a given quarter to the amount of proceeds received from our distribution reinvestment plan in that same quarter. The board may amend, suspend or terminate the plan.

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Summary of Investment ConsiderationsNY Recovery REIT

Professional Management

Focused Strategy

Differentiated Product

Supply Constrained Market

Window of Opportunity

No Legacy Assets*

Low Correlation to Stock Market

Real Estate Has Historically Been Characterized as a Hedge Against Inflation

*Unlike many other real estate companies, management will not be distracted by and shareholders will not be burdened with past acquisitions.


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Realty Capital Securities, LLC │Three Copley Place, Ste. 3300 │Boston, MA 02116 │ 877-373-2522American Realty Capital proprietary products are securities offered through Realty Capital Securities, LLC (Member FINRA/SIPC), an affiliate of American Realty Capital.

American Realty CapitalNew York Recovery REIT, Inc.

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Executive Management TeamNY Recovery REIT

Nicholas S. Schorsch, Chairman & Chief Executive OfficerMr. Schorsch is also chief executive officer of American Realty Capital Trust, Inc., or ARCT. Prior to his current position with our company Mr. Schorsch founded and formerly served as President, CEO and Vice-Chairman of American Financial Realty Trust, or AFRT, since its inception as a REIT in September 2002 until August 2006. AFRT was a publicly traded REIT that invested exclusively in offices, operation centers, bank branches, and other operating real estate assets that are net leased to tenants in the financial service industry, such as banks and insurance companies. Through AFRT and its predecessor company, Mr. Schorsch executed in excess of 1,000 acquisitions, both in acquiring businesses and real estate property with transactional value of approximately $5 billion. In 2003, Mr. Schorsch received an Entrepreneur of the Year award from Ernst & Young.

Michael Weil, President Mr. Weil serves as President and Chief Operating Officer of American Realty Capital. Mr. Weil was formerly Senior Vice President of Sales and Leasing for American Financial Realty Trust (“AFRT”) where he was responsible for the disposition and leasing activity for a 37.3 million square foot portfolio. During his tenure at AFRT, his division increased occupancy and portfolio revenue through the sale of over 200 properties and leasing of over 2.2 million square feet, which greatly increased shareholdervalue. Mr. Weil serves as President-elect and a member of the Board of Directors of the Real Estate Investment Securities Association (“REISA”), the leading alternative investments association providing education, networking and advocacy for members.

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NY Recovery REIT

Michael A. Happel, Executive Vice President & Chief Investment OfficerMr. Happel has over 20 years of experience investing in real estate including acquisitions of office, retail, multifamily, industrial, and hotel properties as well as acquisitions of real estate companies and real estate debt. From 1988-2002, he worked at MorganStanley & Co., specializing in real estate and becoming co-head of acquisitions for the Morgan Stanley Real Estate Funds, or MSREF, in 1994. While at MSREF, he was involved in acquiring over $10 billion of real estate and related assets in MSREF I and MSREF II. As stated in a report prepared by Wurts & Associates for the Fresno County Employees’ Retirement Association for the period ending September 30, 2008, MSREF I generated approximately a 48% gross IRR for investors and MSREF II generated approximately a 27% gross IRR for investors. In 2002, Mr. Happel left Morgan Stanley & Co. to join Westbrook Partners, a large real estate private equity firm with over $5 billion of real estate assets under management at the time. In 2004, he joined Atticus Capital, a multi-billion dollar hedge fund, as the head of real estate with responsibility for investing primarily in REITs and other publicly traded real estate securities.

Peter M. Budko, Executive Vice President & Chief Operating OfficerMr. Budko, is also executive vice president and chief investment officer of ARCT. Mr. Budko founded and formerly served as Managing Director and Group Head of the Structured Asset Finance Group, a division of Wachovia Capital Markets, LLC from 1997-2006. The Structured Asset Finance Group structures and invests in real estate that is net leased to corporate tenants. While at Wachovia, Mr. Budko acquired over $5 billion of net leased real estate assets. From 1987-1997, Mr. Budko worked in the Corporate Real Estate Finance Group at NationsBank Capital Market (predecessor to Bank of America Securities), becoming head of the group in 1990.

Executive Management Team

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NY Recovery REIT

Brian S. Block, Executive Vice President & Chief Financial OfficerMr. Block is Chief Financial Officer of American Realty Capital (“ARC”) and is responsible for the accounting, finance and reporting functions. Mr. Block has extensive experience in SEC reporting requirements as well as REIT tax compliance matters.He has been instrumental in developing ARC’s infrastructure and positioning the organization for growth. Mr. Block also serves as Senior Vice President and Chief Financial Officer of American Realty Capital Trust, a non-traded REIT for which ARC serves as the advisor. Mr. Block began his career in public accounting at Ernst & Young and Arthur Andersen from 1994 to 2000. Subsequently, Mr. Block was the Chief Financial Officer of a venture capital-backed technology company for several years prior to joining American Financial Realty Trust in 2002. While at American Financial Realty Trust, Mr. Block served as Chief Accounting Officer from 2003 to 2007 and oversaw the financial, administrative and reporting functions of the organization. Mr. Block earned a Bachelor of Science from Albright College and an MBA from LaSalle University. He is a certified public accountant and is a member of the AICPA and PICPA. Mr. Block serves on the REIT Committee of the Investment Program Association.

Executive Management Team

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NY Recovery REIT

Scott Bowman was appointed as an independent director of NYRR in August 2011. Mr. Bowman has over 20 years of experience in global brand and retail management in addition to retail store development. Mr. Bowman founded Scott Bowman Associates in May 2009 and has served as its Chief Executive Officer since such time. Scott Bowman Associates provides global management, business development, retail market and network strategies, licensing, strategic planning and international strategy and operations support to leading retailers and consumer brands. From May 2005 until September 2008, Mr. Bowman served as President of Polo Ralph Lauren International Business Development where he was also a member of the Executive Committee and Capital Committees. From June 2007 until September 2008, Mr. Bowman served as Chairman of Polo Ralph Lauren Japan. During his time with Polo Ralph Lauren, Mr. Bowman led the effort to transform the company’s business in Asia from a licensed structure to a direct, integrated subsidiary of Polo Ralph Lauren. The transformation included upgraded merchandising, marketing, store development processes, restructuring remaining partnership agreements as well as leading the effort to buy back control of key operating territories in Asia.

William G. Stanley is the founder and managing member of Stanley Laman Securities, LLC, a FINRA member broker-dealer, since 2004, and the founder and president of The Stanley-Laman Group, Ltd (SLG), a registered investment advisor for high net worth clients since 1997. Mr. Stanley serves on the Advisory Board of Highland Capital’s, High Cap Group. SLG represents some of the wealthiest families in the world and has recently expanded its planning practice to international client matters whichare managed using proprietary trading and security selection techniques along with a global economic research. Mr. Stanley has earned designations as a Chartered Financial Consultant, Chartered Life Underwriter, and received his Masters Degree in Financial Services from the American College in 1997. Mr. Stanley served as an auditor for General Electric Capital from 1977 to 1979 and as a registered representative for Capital Analysts, Inc. of Radnor, Pennsylvania, a national investment advisory firm that specialized in sophisticated planning for high net worth individuals from 1979 to 1991.

Independent Board of Directors

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NY Recovery REIT

Robert H. Burns is a hotel industry veteran with an international reputation. He currently serves as chairman of Barings’ Chrysalis Emerging Markets Fund and as a director of Barings’ Asia Pacific Fund. Mr. Burns founded and built the luxurious Regent International Hotels brand, which he sold in 1992. From 1970 to 1992, Mr. Burns served as chairman and chief executive officer of Regent International Hotels, where he was personally involved in all strategic and major operating decisions. In this connection, Mr. Burns and his team of professionals performed site selection, obtained land use and zoning approvals, performed all property duediligence, financed each project by raising both equity and arranging debt, oversaw planning, design and construction of each hotel property, and managed each asset. Mr. Burns has over forty (40) years as a manager and principal acquiring, financing, developing and operating properties. Mr. Burns opened the first Regent hotel in Honolulu, Hawaii, in 1970. From 1970 to 1979, the company opened and managed a number of prominent hotels, but gained truly international recognition in 1980 with the opening of The Regent Hong Kong. Mr. Burns developed over 18 major hotel projects including the Four Seasons Hotel in New York City, the Beverly Wilshire Hotel in Beverly Hills, the Four Seasons Hotel in Milan, Italy, and the Four Seasons Hotel in Bali, Indonesia.

Independent Board of Directors

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