Ares Commercial Real Estate Corporation Originates Three Senior Loans Totaling $100.5 Million
Brings Total New Loans for Second Quarter to Five, Totaling $132.6 Million
CHICAGO--(BUSINESS WIRE)-- Ares Commercial Real Estate Corporation (ACRE) announced today that it originated three new loans totaling $100.5 million, including a $45.3 million first mortgage loan collateralized by a multi-family property in the Dallas, Texas area, a $35.5 million first mortgage loan collateralized by a multi-family property in Houston, Texas and a $19.7 million first mortgage loan collateralized by an industrial property in a suburb of Washington D.C. ACREs initial funding on these three loans totaled $91.2 million. More details on these three new loans are listed below.
ACRE originated a $45.3 million first mortgage loan, which was used to finance the acquisition of a 510-unit multi-family property in McKinney, Texas (a Dallas sub-market) by a sponsor group that includes Cortland Partners. The loan will also be used to fund certain property-level improvements and new amenities in support of the sponsor groups business plan. The transaction closed on June 27, 2013 with an initial funding of a $39.4 million.
ACRE originated a $35.5 million first mortgage loan, which was used to finance the acquisition of a 301-unit multi-family property in Houston, Texas also by a sponsor group that includes Cortland Partners. The loan will be used to provide certain property-level renovations and new amenities to improve the value of the property. The transaction closed on June 27, 2013 with an initial funding of $32.8 million.
ACRE is an important and trusted financial partner that offers us reliable execution and a flexible financing solution, said Steven DeFrancis, Chief Executive Officer of Cortland Partners. The team at ACRE provided significant value to us during the acquisition process, and ACREs customized financing solutions were tailored to allow us to create value for these properties.
Washington D.C. Transaction
ACRE originated a $19.7 million first mortgage loan collateralized by a 25,178 square foot industrial warehouse property in Springfield, Virginia, within the Washington D.C. market. The loan will be used to refinance existing indebtedness and to provide certain improvements for the property. The transaction closed on June 27, 2013 with an initial funding of $19.0 million.
We are thrilled to originate these three high-quality financings, all of which were made to existing sponsor clients, said Bruce Cohen President and Chief Operating Officer of ACRE. These investments represent the strong momentum in our business as we capitalize on leveraging our incumbent relationships to uncover additional attractive investment opportunities.
For the second quarter of 2013, ACRE originated five new loans totaling $132.6 million. With these transactions, ACREs loan portfolio totaled approximately $529.6 million in outstanding principal as of June 30, 2013.
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a specialty finance company that originates, invests in and manages middle-market commercial real estate loans and other commercial real estate investments. Through its national direct origination platform, Ares Commercial Real Estate Corporation provides flexible financing solutions for middle market borrowers. Ares Commercial Real Estate Corporation intends to elect to be taxed as a real estate investment trust and is externally managed by an affiliate of Ares Management LLC, a global alternative asset manager with approximately $59 billion in committed capital under management as of March 31, 2013. For more information, please visit ACREs website at arescre.com.
Statements included herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein.
Ares Commercial Real Estate Corporation
Carl Drake, 404-814-5204
Source: Ares Commercial Real Estate CorporationCopyright Business Wire 2013