#United States #Uniondale #CLO #Commercial Loans #ACRES Realty Corp

ACRES Commercial Realty Corp. Unveils New CLO Structure

ACRES Commercial Realty Corp. (NYSE: ACR) made waves in the financial sector with the announcement of a new $1 billion collateralized loan obligation (CLO) backed by commercial mortgage loans. This initiative comes from their newly formed subsidiary, ACRES Commercial Realty 2026-FL4 Issuer, LLC, which plans to issue approximately $879.5 million of non-recourse, floating-rate notes.

Key Details of the Transaction

Mark Fogel, the President and CEO of ACRES, expressed excitement about this latest venture. The CLO is structured to provide the company with the capacity to finance up to $1 billion of commercial real estate first mortgage loans at a competitive rate of SOFR+168 basis points. This financing mechanism not only secures immediate capital but also lays groundwork for future projects.

The Offered Notes will feature a tiered structure:

• - Class A Notes: $589.7 million rated Aaa(sf) by Moody's and AAAsf by Fitch at SOFR+145 basis points.
• - Class A-S Notes: $104.2 million rated AAAsf by Fitch at SOFR+170 basis points.
• - Class B Notes: $72.4 million rated AA-sf by Fitch at SOFR+195 basis points.
• - Class C Notes: $58.5 million rated A-sf by Fitch at SOFR+225 basis points.
• - Class D Notes: $36.9 million rated BBBsf by Fitch at SOFR+285 basis points.
• - Class E Notes: $17.8 million rated BBB-sf by Fitch at SOFR+360 basis points.

Innovative Features of the CLO

This transaction is expected to close by February 12, 2026, provided customary closing conditions are satisfied. A key feature of this CLO is its 180-day ramp-up acquisition period, which allows the issuer to utilize unused proceeds to acquire mortgage assets that meet predefined eligibility standards. Moreover, a 30-month reinvestment period permits the issuer to reinvest principal proceeds from mortgage assets into additional loans, thus expanding ACRES' lending capabilities.

Company Background and Growth

ACRES Commercial Realty Corp. operates as a real estate investment trust with a primary focus on the origination, holding, and management of commercial real estate mortgage loans. With the ability to also hold equity investments through direct ownership and joint ventures, ACRES is strategically positioned to take advantage of evolving market opportunities. The firm is externally managed by ACRES Capital, LLC, which specializes in middle-market commercial real estate lending across the United States, emphasizing sectors like multifamily housing and hospitality.

Despite the complexities involved with such financial products, ACRES has reported strong interest from investors, indicating confidence in the stability and prospects of the real estate market. As the market continues to adjust, this move strengthens ACRES' position within the industry.

For more updates, ACRES encourages interested parties to visit their official website at acresreit.com or reach out to investor relations for further information.

This investment initiative reflects ACRES's dedication to innovation and sustainability in commercial real estate financing, facts that stakeholders will likely find reassuring in an unpredictable economic landscape.

Forward-Looking Statements

As with all diversified financial initiatives, investors are advised to note that any predictions regarding the company's future performance come with inherent risks and uncertainties. The company provides necessary disclaimers, reminding stakeholders of the importance of thorough due diligence in evaluating investment opportunities.

In conclusion, ACRES Commercial Realty Corp.'s structuring of this CLO marks a significant step in enhancing their operational liquidity while providing attractive investment opportunities, reflecting both their market confidence and anticipated growth trajectory.