Ares Commercial Real Estate Corporation Originates Retail Property Loan
$70 Million in Financing for Two Adjacent Retail Properties on Chicagos Magnificent Mile
CHICAGO--(BUSINESS WIRE)-- Ares Commercial Real Estate Corporation (ACRE) announced today it originated a first mortgage loan in connection with the refinancing of two adjacent retail properties located on Michigan Avenues Magnificent Mile in Chicago, Illinois. The transaction closed on July 29, 2013 with an initial funding of $70.0 million. The proceeds will be used to refinance the prior indebtedness and provide future funds for the properties, which total approximately 62,000 square feet.
Our investment strategy is to lend across a broad array of property types with a national focus, and this transaction marks our first loan secured by retail properties, which are well positioned in the heart of Chicagos Magnificent Mile shopping district, said Bruce Cohen, President and Chief Operating Officer of Ares Commercial Real Estate Corporation.
With this transaction, Ares Commercial Real Estate Corporation has originated or co-originated more than $478 million of commitments year-to-date, including loans totaling $266.6 million that were previously listed on its pipeline as of June 14, 2013. As of July 29, 2013, Ares Commercial Real Estate Corporations loan portfolio had outstanding principal of approximately $690.4 million.
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 $66 billion in committed capital under management as of June 30, 2013 and pro forma for the closing of the AREA Property Partners transaction that occurred on July 1, 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