Weil says the transaction will allow RCAP “to directly reach the individual investor through First Allied’s extensive network of independent financial advisors.”
This is not the first major announcement for Schorsch in recent months. American Realty Capital Properties Inc., a real estate investment trust controlled by Schorsch, earlier this month announced a merger agreement with a traded REIT, CapLease Inc. Also in June American Capital Trust IV Inc., another of Schorsch’s companies, agreed to buy 986 retail properties from General Electric Co.’s finance arm to bring the REIT’s holdings to 1,326 properties.
In March, American Realty Capital Properties merged with the similarly-named but unrelated American Realty capital Trust III Inc. American Realty Capital Trust, a nontraded REIT, specialized in long-term leases while American Realty Capital Properties specialized in short and mid-term leases. American Realy Capital Properties is a sister company to RCAP with the same owners but no financial connection.