REIT ends agreement with ARC Properties Advisors
American Realty Capital Properties (ARCP), which owns 1,200 primarily retail properties, is terminating its management agreement with ARC Properties Advisors, an outside company that is majority-owned by Nicholas Schorsch and his partners, The Wall Street Journal reported.
American Realty said it would hire its own president, chief executive, chief operating officer and general counsel. Mr. Schorsch, who currently serves as chairman and chief executive of American Realty through his position at ARC, will become executive chairman of American Realty's new management team.
"We're tearing up our 10-year management contract," Mr. Schorsch said in a recent interview in his Manhattan office. "As an internalized company, you get a better multiple in the market. The market likes it better."