ARC’s Realty Finance Trust Closes $350 Million Loan Obligation

Realty Finance Trust Inc., a publicly registered non-traded real estate investment trust sponsored by AR Capital, revealed that two of its consolidated subsidiaries, RFT 2015-FL1 Issuer, Ltd. and RFT 2015-FL1 Co-Issuer, LLC, issued notes with a total principal amount of $350.2 million, evidencing a commercial real estate mortgage securitization, and sold the notes in a private placement.

The notes are secured by a portfolio with a principal balance of $428.4 million, consisting of four first-lien loans and 24 pari passu participation interests in first-lien mortgage loans secured predominately by multifamily and commercial properties across the United States. The notes were the first collateralized loan obligation issued by the company.

“We are pleased with the institutional participation in our first CLO,” said Donald MacKinnon, president and chief operating officer. “This transaction is another step forward in our business plan and provides committed term financing for our commercial loans. In addition, this transaction creates additional capacity for new loan originations.”

Realty Finance Trust was formed primarily to originate, acquire and manage a diversified portfolio of commercial real estate debt secured by properties located both within and outside of the United States. The company may also invest in commercial real estate securities and commercial real estate properties. As of June 30, 2015 and December 31, 2014, Realty Finance Trust had 60 and 38 loan investments, respectively, all of which were current on their interest and scheduled principal payments. During the same periods, the company had raised approximately $605.9 million and $384.2 million in investor equity, respectively, including shares issued pursuant to the DRIP and share-based compensation.