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Personnel Overhaul at AR Capital REITs

American Realty Capital New York City REIT and American Realty Capital Global Trust II, non-traded REITs sponsored by AR Capital, have announced a series of management changes in the wake of the ongoing scandal associated with the family of companies founded by Nicholas Schorsch and his partners.

American Realty Capital New York City REIT Inc. announced that William Kahane has resigned from his role as a director of the company. According to a company filing with the Securities and Exchange Commission, he “did not resign pursuant to any disagreement with the company.”

Kahane is the longtime business associate of Nicholas Schorsch and a founding partner of AR Capital, the REIT’s sponsor. In December 2014, Kahane replaced Schorsch as executive chairman of the REIT, following the widely publicized American Realty Capital Properties accounting scandal that was disclosed last October.

In connection with Kahane’s resignation, the board of directors appointed another AR Capital partner, Michael Weil, to serve as a director and as executive chairman of the board.

American Realty Capital Global Trust II also announced that Kahane resigned from his role as a director of the company, and Weil was appointed to serve as a director and as executive chairman of the board.

Patrick Goulding stepped down as chief financial officer, treasurer and secretary “by mutual agreement” with American Realty Capital Global Trust II to “pursue other opportunities.”

Andrew Winer stepped down as president and chief investment officer of American Realty Capital Global Trust II and Global Net Lease (NYSE: GNL), an exchange-traded REIT founded and externally managed by AR Capital, “by mutual agreement with the company to pursue other opportunities.”

The board appointed Timothy Salvemini to serve as chief financial officer, treasurer and secretary of the company, effective December 1, 2015. He will also serve as chief financial officer, treasurer and secretary of the company’s advisor and the company’s property manager.

Salvemini has served as chief administrative officer of Rouse Properties Inc., a publicly-traded real estate investment trust, from 2014 to 2015 and chief accounting officer of Rouse Properties from 2012 to 2014.

This isn’t the first major executive shakeup at an ARC-sponsored REIT in recent days. On Friday, Business Development Corporation of America, which has been embroiled in an alleged proxy vote fraud complaint by the state of Massachusetts, announced that Robert Grunewald was removed from his position as president, chief investment officer and chief operating officer, effective immediately.

To replace Grunewald, the company’s board of directors appointed James Fisher as president and chief operating officer of the company.

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