Ares Commercial Real Estate Corporation (NYSE: ACRE) announced today that it closed a $49.6 million first mortgage loan commitment collateralized by a 982-unit multi-family apartment portfolio located in Brandon, FL, within the greater Tampa market. The portfolio consists of two separate apartment properties, one with 270 units and the other with 712 units. The transaction closed on December 19, 2012 with initial funding of $43.4 million. The proceeds were used to finance the acquisition of the portfolio by a joint venture between Blue Rock Partners and Stonecutter Capital Management.
“We have enjoyed a strong relationship with the team at ACRE and we look forward to working with them on this attractive project,” said Randy Ferreira of Blue Rock Partners. “ACRE’s capital solution was an excellent fit for our acquisition and business plan financing needs.”
“This transaction exemplifies not only the importance of our relationship with Blue Rock Partners, but also our ability to deliver timely, customized financing solutions for property acquisitions, particularly for projects undergoing transition,” said Bruce Cohen, President and Chief Operating Officer of Ares Commercial Real Estate Corporation. “We are also pleased to enhance our portfolio diversification by entering the attractive greater Tampa market.”
With this transaction, Ares Commercial Real Estate Corporation’s loan portfolio totaled approximately $356 million in outstanding principal as of December 20, 2012.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 $56 billion in committed capital under management as of September 30, 2012. For more information, please visit our website at arescre.com.