Ares Commercial Real Estate Corporation (NYSE: ACRE) announced today
that in December 2013 it originated six new loans for its principal
lending portfolio totaling $339 million of aggregate commitments with
$258 million of aggregate initial funding.
Approximately 60% of the loans closed in December were collateralized by
multifamily properties, including a $125 million first mortgage and
mezzanine financing for the acquisition of an apartment building located
on the Upper West Side of New York City. The remaining loans were
secured by office and industrial properties, including a class A office
tower located in Dallas, Texas. All six loans pay floating rates of
interest based on LIBOR, consistent with ACRE’s objective to match fund
primarily floating rate-based assets with primarily floating rate-based
liabilities. Three of the six commitments were made to existing ACRE
sponsors.
“We ended 2013 with a very productive December,” said Todd Schuster,
Co-CEO and President of ACRE. “Our direct origination platform continues
to provide opportunities with attractive risk-adjusted returns as we
build our predominantly senior, floating rate portfolio of loans backed
by stable cash flowing property types such as multifamily and office.”
“Given the attractive financing we received in our November CMBS
transaction coupled with our capital deployment in December, we believe
ACRE's balance sheet is well positioned heading into 2014,” added
Tae-Sik Yoon, Chief Financial Officer of ACRE.
In 2013, ACRE originated or co-originated 22 new commitments for its
principal lending portfolio totaling $875 million in aggregate
commitments and $761 million in principal outstanding, with 90% of these
commitments structured as senior loans and 85% collateralized by
multifamily or office properties.
ACRE’s principal lending portfolio totaled approximately $1.05 billion
in outstanding principal at December 31, 2013 with 91% comprised of
senior loans and 94% of the portfolio paying floating rates of interest
based on LIBOR. The portfolio is comprised of loans secured by
multifamily and office, representing 49% and 40% of the portfolio,
respectively, and retail and industrial properties, representing 6% and
5%, respectively. The portfolio remains geographically diverse across
the United States with 21% in the Southeast, 13% in the West, 18% in the
Midwest, 24% in the Southwest and 24% in the Mid Atlantic.
Additionally, ACRE Capital LLC, a subsidiary of ACRE, rate locked eight
loans resulting in approximately $30 million of aggregate loan
commitments for the fourth quarter of 2013.
“We have made great progress in repositioning the ACRE Capital platform
during our first full quarter of owning the business,” said Mr.
Schuster. “Although many of these accomplishments have not yet
translated into our origination activity, important developments such as
the recent hiring of a quality team to expand our FHA origination
capability should enhance the business going forward. Our ability to
structure, service and provide a wide array of financing solutions
remains a key differentiator, which is being recognized by our borrowers
and some of the most talented professionals in our industry. This is an
exciting time for both ACRE and ACRE Capital.”
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a specialty finance company
that provides principal lending, mortgage banking and servicing of
commercial real estate loans. Through its national direct origination
platform, Ares Commercial Real Estate Corporation provides a broad
offering of flexible financing solutions for commercial real estate
owners and operators in the middle market. Ares Commercial Real Estate
Corporation has elected 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 $68 billion in
committed capital under management as of September 30, 2013. For more
information, please visit www.arescre.com.
Forward-Looking Statements
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.
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