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ACRES Commercial Realty Completes Internalization and $200M Debt Offering

Uniondale-based ACRES Commercial Realty Corp. has finalized its transition from an externally managed REIT to an internally managed entity following the acquisition of ACRES Capital Corp. The all-stock transaction, which closed August 6, serves as a cornerstone for the firm’s strategy to consolidate operations and drive long-term stakeholder value.

ACRES Commercial Realty Completes Internalization and $200M Debt Offering
Photo: Bio & News

The merger resulted in the issuance of approximately 7.5 million shares of ACR common stock to ACC stockholders. After accounting for the elimination of existing cross-holdings, the company’s net outstanding common shares increased by 6.3 million. Chairman Andrew Fentress and President Mark Fogel stated that the combined leadership team now holds over 40% of the firm's equity, signaling a commitment to growth and service efficiency.

Concurrent with the merger, the company successfully placed $200 million in 8.625% senior secured notes due in 2031. A significant portion of these proceeds is earmarked to satisfy the $150 million maturity of 5.75% senior unsecured notes later this month. The new debt, structured with a first-lien security interest in various subsidiary capital stocks and commercial real estate assets, provides the company with a fresh capital base to support its middle-market lending operations across multifamily, student housing, and industrial sectors.

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