Home Alts News CIM Group Affiliate Acquires Cole Capital

CIM Group Affiliate Acquires Cole Capital

VEREIT Inc. (NYSE: VER), the publicly-traded real estate investment trust formerly known as American Realty Capital Properties Inc., has closed the sale of Cole Capital to an affiliate of CIM Group.

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VEREIT Inc. (NYSE: VER), the publicly-traded real estate investment trust formerly known as American Realty Capital Properties Inc., has closed the sale of Cole Capital to an affiliate of CIM Group. In connection with the acquisition, Cole Capital Corporation, Cole’s broker-dealer subsidiary, has been renamed CCO Capital LLC.

“Cole’s distribution team, including sales, national accounts, shareholder relations, compliance, and marketing, have joined CIM, and CIM’s entrepreneurial and collaborative culture will support the needs of our business,” said Bill Miller, president and CEO of CCO Capital LLC. “The structure and operations of the Cole REITs should continue without disruption.”

Currently, Cole operates five public non-listed real estate investment trusts, including Cole Credit Property Trust IV Inc., Cole Credit Property Trust V Inc., Cole Real Estate Income Strategy Inc., Cole Office & Industrial REIT (CCIT II) Inc., and Cole Office & Industrial REIT (CCIT III) Inc. The Cole REITs together have more than $7.6 billion in real estate assets. All of the REITs, except Cole Credit Property Trust IV, expanded their respective boards of directors following the purchase by CIM.

“CIM is acquiring expertise and taking over operations for what we believe are best-in-class performing real estate funds in the net-lease sector,” said Richard Ressler, CIM co-founder and principal. “We believe that adding net-lease assets is complementary to CIM’s urban real asset platforms and will benefit all of our stakeholders.

Glenn Rufrano voluntarily resigned as president and CEO of Cole Credit Property Trust V, Cole Real Estate Income Strategy, and both Cole Office & Industrial REITs, but will continue to serve on the board of each company.

Thomas Roberts voluntarily resigned as president, CEO and a member of the board of directors of Cole Credit Property Trust IV Inc.

CIM co-founder and principal Avraham Shemesh will serve as the new president and CEO of Cole Credit Property Trust V and Cole Office & Industrial REIT (CCIT II).

Ressler will serve as president and CEO of Cole Credit Property Trust IV, Cole Real Estate Income Strategy, and Cole Office & Industrial REIT (CCIT III).

In connection with the transaction, VEREIT may receive up to $200 million, comprised of approximately $120 million cash paid at closing under the purchase agreement and up to $80 million in fees to be paid under a six-year services agreement based on Cole’s future revenues. The services agreement, among other things, requires VEREIT to provide operational real estate support to Cole for approximately one year.

Established in 1994, CIM is a vertically-integrated owner and operator of real assets that include urban residential, commercial, retail, hospitality, debt, and infrastructure investments, as well as U.S.-based retail and industrial net-lease.

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