NEW YORK CITY—Net lease acquisition titan American Realty Capital Properties Inc.'s previously announced self-management initiative will be completed in a little over a week. The locally based firm will become self managed on January 8, 2014, about three business days after its acquisition of American Realty Capital Trust IV Inc.
ARCP will continue to be led by Nicholas S. Schorsch and Brian S. Block, two of its founders and current executive officers. The executives, who will respectively serve as executive chairman and chief financial officer, played key roles in building the company and assembling its property portfolio.
According to the company, the decision to become self-managed is the result of a process begun earlier this year by ARCP's board of directors to determine the best time and the ideal method to maximize the efficiency and effectiveness of such a transformation. The move was motivated by the board's desire to enhance stockholder value and transparency.
“We could not be more pleased with the timing of ARCP's transition to becoming a completely self-managed enterprise,” and with the additions to the firm's executive management team,” says Schorsch, who also serves as ARCP chief executive officer. “As we take our place as the most significant net lease REIT in the industry, we will be guided by the strongest, most experienced management team ever assembled to run such a company.”
Rounding out the management team are David S. Kay, who will serve as president; Lisa Beeson,COO; Lisa Pavelka McAlister, as chief accounting officer; Glenn Kindred, as executive vice president of the Restaurants Division; and Paul H. McDowell, president of the Office & Industrial Division.
Beeson notes, “We believe the move to self-management creates stockholder value by establishing a structure that allows us to operate more effectively and efficiently.” The timing, she adds, is “optimal” given the integration of ARCT IV and Cole Real Estate Investments Inc., another previously announced acquisition slated to close this month.
As part of the move toward self management, ARCP will terminate the existing management agreement with its current external manager, ARC Properties Advisors LLC as of Jan. 8. This doesn't mean the entities will completely sever ties; ARCP anticipates using certain services of the ARC Properties Advisors following the ARCT IV and Cole mergers.
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Sule Aygoren
Aygoren oversees the editorial direction and content for ALM’s Real Estate Media Group, including Real Estate Forum and GlobeSt.com. In her tenure with ALM, she’s held roles of increasing responsibility, including Managing Editor. Aygoren has received several awards for her coverage including Best Trade Magazine Report from the National Association of Real Estate Editors and the James D. Carper Award for Young Journalists. Under her direction, Forum has received four national NAREE awards for Best Commercial Real Estate Trade Magazine.
