Ares Commercial Real Estate Closes $159M Loan Commitment
Zacks Investment Research | Oct 10, 2016 10:20PM ET
Ares Commercial Real Estate Corporation (NYSE:ACRE) , the New York-based mortgage real estate investment trust (“mREIT”) has announced that it closed a new senior loan commitment to the tune of $159 million on Sep 28, 2016. This actually raises the new loan commitment for third-quarter 2016 to around $605 million, with initial funding of $577 million. The new loan is mainly collateralized by self-storage assets across a multi-state area.
Ares Commercial Real Estate is a specialty finance company, which primarily focuses on originating and investing in commercial real estate loans and related investments. During the third quarter, the company’s capital availability benefited due to repayment of loans of around $250 million. In fact, net loan grew by over $325 million during the period, leading to principal loan balance of around $1.4 billion at quarter end.
Also, during the quarter, the company committed over $600 million in new senior loans that are well diversified by property type and geography. Further, Ares Commercial Real Estate has huge capital available which will help to further enhance its portfolio and boost earnings.
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