NEW YORK--(BUSINESS WIRE)--Ares Commercial Real Estate Corporation (NYSE:ACRE) announced today that it provided $153 million in new floating rate, senior loan commitments across three different transactions. With the closing of these loan commitments, ACRE has originated more than $445 million of senior loan commitments so far in the third quarter. Below is a listing of the three recently closed transactions.
Self-Storage and Retail Properties
ACRE provided a $99 million senior loan to refinance a 15-property, multi-state portfolio that is comprised of 12 self-storage assets and three retail assets. The floating rate loan carries a two-year initial term with three one-year extensions.
ACRE provided a $34 million senior loan to refinance indebtedness and provide capital in support of the sponsor’s business plan for a 158-unit, Class A multifamily property located in Minneapolis, Minnesota. The floating rate loan carries a three-year initial term and two one-year extensions.
Commercial Office Property
ACRE provided a $20 million senior loan to finance the acquisition and execution of the sponsor’s business plan for a 150,000-square-foot office property located in a suburb of Philadelphia, Pennsylvania. The floating rate loan carries a 3.5-year initial term.
“We continue to leverage our national, direct origination footprint and the breadth of our real estate capabilities to source diverse and attractive opportunities across multifamily, office and specialized property types such as self-storage in order to deliver value to our customers and our investors,” said John Jardine, President and Co-Chief Executive Officer of ACRE. “We are pleased with our strong production activities and our attractive pipeline and we are focused on timely investing the net proceeds from the anticipated upcoming sale of our mortgage banking business.”
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a specialty finance company primarily engaged in originating and investing in commercial real estate loans and related investments. Through Ares Commercial Real Estate Corporation’s national direct origination platform, it provides a broad offering of flexible financing solutions for commercial real estate owners and operators. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management, L.P. (NYSE:ARES), a publicly traded, leading global alternative asset manager with approximately $95 billion of assets under management as of June 30, 2016. For more information, please visit www.arescre.com. The contents of such website are not, and should not be deemed to be, incorporated by reference herein.
Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which relate to future events or the Company’s future performance or financial condition, including the ability to reinvest the proceeds of the loan sale. 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 the returns on current and future investments, rates of repayments and prepayments on the Company’s mortgage loans, availability of investment opportunities, the Company’s ability to originate additional investments and completion of pending investments, the availability of capital, the availability and cost of financing, market trends and conditions in the Company’s industry and the general economy, the level of lending and borrowing spreads, commercial real estate loan volumes, government-sponsored enterprise activity, the Company’s ability to complete the sale of ACRE Capital Holdings LLC, its mortgage banking subsidiary, and reinvest the net proceeds thereof and the risks described from time to time in the Company’s filings with the Securities and Exchange Commission. Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein.