#United States #Uniondale #ACR #ACRES Commercial Realty #Internalization

ACRES Commercial Realty Announces Major Milestone in Corporate Strategy

In a significant development for real estate investment, ACRES Commercial Realty Corp. (NYSE: ACR) has officially announced the completion of its merger with ACRES Capital Corp. (ACC) and a shift from externally-managed to internally-managed operations. This strategic move not only strengthens the company's position in the marketplace but also aligns its management more closely with the interests of its shareholders.

On August 6, 2026, ACRES revealed that this all-stock transaction facilitated the former ACC stockholders receiving around 7.5 million shares of ACR common stock as part of the merger agreement. The outcome is a net increase of approximately 6.3 million common shares outstanding, following the termination of the existing Management Agreement. This transition underscores ACRES's commitment to driving value for all stakeholders and marks a pivotal moment for the company.

Andrew Fentress, Chairman of the Board, alongside Mark Fogel, President of ACRES, expressed their enthusiasm regarding this transition. They emphasized the potential for collective ownership, with the team now holding over 40% of ACR common shares, motivating them to enhance company value for the benefit of all involved. This internalization aims to bolster the company’s ability to cater to the evolving needs of its clients as they seek robust service and capital.

Private Offering of Senior Secured Notes

In tandem with the completion of the merger, ACRES disclosed the successful execution of a private placement—$200 million worth of 8.625% Senior Secured Notes due by 2031. This offering, structured through a Note Purchase Agreement with selected purchasers and UMB Bank, N.A. as the Collateral Agent, represents a vital component of the company’s financial strategy. The company plans to utilize a portion of these proceeds to fully repay its existing $150 million of 5.75% Senior Unsecured Notes due in August 2026, with remaining funds allocated for general corporate purposes.

These newly issued notes will mature on July 31, 2031, and are secured by a first lien against certain capital stock in ACRES' subsidiaries, interests in securitized financing vehicles, and various other commercial real estate assets. This financial maneuver provides a stable foundation for future endeavors, demonstrating the company’s strategic foresight.

In reflecting on these achievements, Fentress praised Raymond James for their role as trusted advisors during this significant refinancing process, which dates back six years to the acquisition of the ACR contract.

Who is ACRES Commercial Realty Corp?

Founded with a focus on commercial mortgage financing, ACRES is a public REIT dedicated to originating, managing, and holding a portfolio of real estate mortgage loans and equity investments. Thanks to its expansion efforts, the company addresses various segments across the market, including multifamily housing, student accommodations, hospitality, and office spaces in key U.S. locations. More details about their offerings and operations can be found on their official website at www.acresreit.com.

Conclusion

The completion of the merger and internalization positions ACRES Commercial Realty for an exciting new phase of development. As they embark on this journey, stakeholders can look forward to seeing how ACRES plans to leverage these changes to fulfill its growth aspirations while solidifying its market position. With the dedication of the ACRES team and a growth-driven strategy, the future looks bright for both the company and its investors.