American Realty Capital Properties (ARCP) announced yesterday that it will complete its self-management initiative on January 8, 2014. This will be three business days after its pending acquisition of American Realty Capital Trust IV is scheduled to close.
ARCP will continue to be led by Nicholas Schorsch and Brian S. Block, two of the company’s founders and current executive officers. Other members of the ARCP team will include David S. Kay as President, Lisa Beeson as Chief Operating Officer, Lisa Pavelka McAlister as Chief Accounting Officer, Glenn Kindred as Executive Vice President of the Restaurants Division, and Paul H. McDowell as President of the Office & Industrial Division.
The company will terminate its existing management agreement with ARCP Property Advisors, LLC, its current external manager (the Manager). ARCP will continue to use some of the Manager’s services following the ARCT IV merger until the completion of the Cole merger, which is scheduled to close sometime in January 2014.
ARCP’s self-management initiative is an attempt to increase transparency and enhance stockholder value. Chief Operating Officer of ARCP, Lisa Beeson, commented, “We believe the move to self-management creates stockholder value by establishing a structure that allows us to operate more effectively and efficiently. We view this as the optimal timing to implement this improved structure as we look forward to successfully integrating ARCT IV and Cole with ARCP.”