News:

Feb 9, 2012

NEW YORK--(BUSINESS WIRE)--American Realty Capital II, LLC, the sponsor of nine public real estate companies and a business development company, announced today that it has changed its name to AR Capital, LLC (“AR Capital”) in recognition of its expanded role in creating and distributing direct investments outside its traditional base of real estate offerings. In addition, AR Capital announced that Michael Weil has been appointed President of AR Capital.

AR Capital History and Focus: AR Capital was founded by Nicholas S. Schorsch, William M. Kahane, Michael Weil, Peter Budko and Brian Block in 2006 as a full-service real estate investment management firm providing advisory services to retail and institutional investors. Since its formation, AR Capital has consistently worked to introduce institutional best practices to the direct investment industry. AR Capital offers investors professionally managed investment solutions providing tax efficient current income with the potential for growth.

The firm continuously seeks to “find a better way” to deliver demonstrable results and perform for investors in its sponsored offerings. A key element of AR Capital’s success has been its development of Realty Capital Securities (“RCS”), member FINRA / SIPC, AR Capital’s affiliated broker dealer subsidiary. To this end, the AR Capital founders have assembled, and continue to attract and retain, a team of professionals at both AR Capital and RCS with deep and broad experience.

AR Capital announced today the achievement of several key milestones.

AR Capital – Notable Achievements to Date: AR Capital is pleased to announce a number of significant achievements for 2011:

• Successful Closing of AR Capital’s Flagship Offering: As previously disclosed, in July 2011 AR Capital successfully completed raising $1.7 billion in one of its publicly registered, non-traded real estate programs. The program was fully subscribed and AR Capital did not implement a “follow on” offering. As of November 2011, the program invested substantially all its net proceeds consistent with its strategy of purchasing single tenant net leased properties on a long-term basis to primarily investment grade tenants.
• AR Capital’s Programs Invest a Total $1.7 Billion in Real Estate: In 2011, the firm’s sponsored programs acquired approximately $1.7 billion of real estate investments.
• ARC Healthcare Becomes Leading Money Raiser: American Realty Capital Healthcare Trust raised the most equity capital in January 2012 for sales of healthcare related real estate offerings. ARC Healthcare raised $18 million, making January 2012 it its best month of fundraising to date.
• NASDAQ Listing: In September 2011, AR Capital successfully completed the $70 million initial public offering of one of its programs. Eight weeks later, AR Capital completed an underwritten secondary offering for 1.6 million shares. To date, the program’s portfolio includes approximately $160 million of properties consistent with its strategy of buying net lease properties leased on a medium-term basis (3 years to 8 years remaining primary lease term).
• AR Capital Continues to Augment Its Intellectual Capital: AR Capital has attracted a skilled and seasoned group of professionals and support staff. Recent additions to the management team include:

Name		Title		Former Affiliations		Experience
Robert Grunewald		Chief Investment Officer, Business Development Corporation of America		NationsBank/Montgomery Securities, American Capital Agency Corporation		-Extensive experience with investment banking and specialty finance -Prior head of Financial Services M&A at NationsBank/ Montgomery Securities -Prior head of the Financial Services Investment Practice for American Capital Agency Corporation (NASDAQ:AGNC) -Committed over $1 billion to debt and equity investments
Todd Jensen		Chief Investment Officer, American Realty Capital Healthcare Trust		DASCO, Lauth, Hammes		-20 years of experience specializing in healthcare properties -Helped build DASCO healthcare real estate development and acquisitions businesses
Steve Leathers		Vice President-Acquisitions, American Realty Capital Healthcare Trust		Grubb & Ellis Realty Investors		-Senior member of G&E Realty real estate platform specializing in healthcare -Directed acquisition activities of approx. 10.5 mm square feet of office and medical properties
Andrew Winer		Senior Vice President, Debt Capital Markets		Credit Suisse, Arthur Andersen		-20 years in commercial real estate finance, overseeing pricing, hedging and execution of securitized real estate debt and CMBS -Certified Public Accountant
Christopher Pike		Director of Investment Research		Merrill Lynch, UBS, Wachovia, Goldman Sachs		-Prior experience as an equity research analyst -Former member of real estate investment banking team at Goldman Sachs -2005 The Wall Street Journal’s Best on the Street award runner up
Sean Leahy		Vice President, Asset Management		Healthcare Trust of America, Cole Real Estate Investments		-17 years of experience in commercial real estate acquisitions, dispositions, leasing and asset management; primary focus on single and multi-tenant office, medical office and retail properties
Ira Wishe		Senior Analyst, Business Development Corporation of America		MKP Capital, LLC, Tricadia Capital, LLC, Deloitte & Touche LLP		-13 years of relevant experience

Realty Capital Securities – Notable Achievements to Date: AR Capital is pleased to announce a number of significant milestones for RCS in 2011:

• RCS Raised $3.4 billion over 2.5 Years: By December 2011, RCS had collectively raised in excess of $3.4 billion in gross proceeds since commencing operations. RCS raised over $1.8 billion in 2011 alone, collecting almost one dollar in every four raised in the direct investment channel and attaining the top ranking in the non-traded REIT industry league tables. In 2011, RCS executed a record 615 selling agreements across 10 different offerings with more than 300 broker dealer Financial Industry Regulatory Authority (“FINRA”) member firms, including RIA’s and wire houses; to-date, RCS has over 1,200 selling agreements in place. RCS employs over 115 licensed sales professionals.
• RCS Continues to Build Out its Distribution Footprint: In addition to distributing through more than 300 independent broker dealers, RCS recently announced that one of its offerings had entered into a joint venture with CBRE Investors to acquire $200 million of properties. Moreover, a major regional wire house agreed to distribute multiple AR Capital-sponsored programs. Finally, as of December 2011, RCS had raised almost $200 million from managed accounts on a major firm’s alternative investment platform.
• RCS Expands its Business Into Investment Banking: Another significant milestone was attained by RCS this week when FINRA approved RCS to expand its business to include the distribution of companies organized under the Investment Company Act of 1940, and to participate in firm commitment underwritings.
• RCS Continues to Market $11 Billion of Equity Securities: RCS currently serves as the dealer manager and distributor for nine real estate offerings and one business development company, sponsored by AR Capital and by third party managers. RCS currently distributes in excess of $11 billion of equity securities in offering across these publicly registered, non-traded programs.
• RCS Continues to Build Its Senior Management Team: RCS has attracted an experienced group of sales professionals and support staff. In addition to its existing management team, recent additions include:

Name		Title		Former Affiliations		Experience
Brian Jones		Head of Investment Banking		Robert W. Baird, Morgan Stanley		-More than 17 years of real estate investment banking and capital markets experience. - Advisor in mergers and acquisitions transactions valued at more than $40 billion and completed more than 70 corporate finance transactions. -Former Director in the real estate investment banking group at Robert W. Baird & Co. -Certified Public Accountant
William Miller		Executive Vice President		AXA Distributors, Lincoln Financial/American Legacy, Manulife Wood Logan		-Over 20 years of sales and wholesale distribution of financial products -Former EVP and Chief Sales Officer for AXA Distributors, responsible for external and internal wholesaling of variable annuities -Prior executive roles at LincolnFinancial/American Legacy, Manulife Wood Logan
Richard Arnitz		Executive Director		Grubb & Ellis Capital Corporation, Cole Capital, AIG		-24 years financial services industry experience including four years as CEO and President of Grubb & Ellis Capital Corporation and Grubb & Ellis Securities and one year as President of Cole Capital Markets
						-Several prior positions at American International Group; broker dealer and product manufacturing
Andrew Christos		Executive Vice President and Product Manager		Columbia Management, Manulife Financial, Fidelity Investments, Mesirow Financial		-17 years of experience working Merrill Lynch, Fidelity Investments and Manulife Financial selling variable annuities -From 2005 to 2010, senior executive at Columbia Management selling mutual funds and SMA business -Former Senior Vice President and head of intermediary distribution at Mesirow Financial, responsible for expanding the SMA, Mutual fund and Alternative Investment business.
Joseph Hart		Executive Vice President of Institutional Sales		ING, Prudential Investments, Banc of America, Wachovia (formerly First Union), and Fidelity Investments		-25 years financial services industry experience -Former SVP and Head of Sales for ING Investment Management -Previously with Prudential Investments, Banc of America, Wachovia (formerly First Union), and Fidelity Investments
Lavea Thomas		Senior Vice President and Director of National Accounts		Grubb & Ellis Capital Corporation		-7 years financial services industry, experience building strategic relationships in the direct investment industry
Diana Keary		Senior Vice President and Chief Marketing Officer		Grubb & Ellis Capital Corporation, AXA Equitable, MetLife Investors		-20 years financial services industry experience -Former senior marketing positions with AXA Equitable, MetLife Investors and WM Group. -One year with Grubb & Ellis Capital Corporation, responsible for REIT marketing
Alan Calderon		Co-Head of Due Diligence		European Investors, Morgan Stanley		-Certified Financial Analyst with extensive research experience for publicly traded REITs -Former senior analyst for Morgan Stanley and European Investors, Inc. specializing in office, industrial, retail, residential and Canadian REITs and REOCs -Prior experience specialized in real estate audit and taxation at Berdon LLP and Arthur Andersen
Scott Rivera		Co-Head of Due Diligence		Cetera Financial Group		-5 years as former director of due diligence for Cetera Financial Group (formerly ING Advisors Network)

Michael Weil Appointed President of AR Capital: The firm announced that Michael Weil, current RCS CEO, will assume the role of President of AR Capital effective immediately. In this capacity, Mr. Weil will have overall responsibility for the acquisitions, asset management, property management, leasing, and brokerage aspects of the firm’s business.

Mr. Weil will maintain an active leadership role with RCS, AR Capital’s affiliated broker dealer, as its Chairman. As Chairman of RCS, Mr. Weil will continue to provide strategic planning, management and operational oversight for the broker dealer. Prior to assuming the helm of RCS, Mr. Weil served as Executive Vice President of AR Capital, where he was integral in sourcing and originating investment opportunities for AR Capital-sponsored investment programs.

Mr. Weil was formerly Senior Vice President of Sales and Leasing for American Financial Realty Trust (“AFR”) where he was responsible for the acquisition, disposition and leasing activity for a 37.3 million square foot portfolio and managing over 1,100 properties. During his tenure at AFR, his division increased occupancy and portfolio revenue through the sale of over 400 properties and leasing of over 2.5 million square feet, which greatly increased shareholder value.

Mr. Weil serves as President-elect and a member of the Board of Directors of the Real Estate Investment Securities Association (“REISA”), the leading alternative investments association providing education, networking and advocacy for members. He holds his Series 7, 63 and 24 securities licenses.

AR Capital’s Chairman and CEO, Nicholas S. Schorsch noted, “I am thrilled that Mike will focus once again on the real estate side of our business, an area he knows well and previously led successfully. As we have built this company, we have deployed resources strategically to deliver the best results for investors. This move is consistent with that approach. We are always trying to find better ways to be a constructive contributor to and positive role model for the direct investment industry. Together with the results we have described today across all of our business lines, we have identified the men and women who have contributed to those results. This experienced management team and staff has helped grow our business successfully in a short period of time. We shall continue to grow our business based on best practices and an investor-first focus, ensuring that management’s interests are aligned with those of the investor.”

To arrange interviews with executives of American Realty Capital, please contact Tony DeFazio at 484-532-7783 or tony@defaziocommunications.com.

Print