Profile: Ares Commercial Real Estate Corp (ACRE.N)
26 Jul 2016
Ares Commercial Real Estate Corporation, incorporated on September 1, 2011, is a specialty finance company. The Company is a Real Estate Investment Trust (REIT), primarily focused on directly originating, managing and servicing a portfolio of commercial real estate (CRE) debt-related investments for its own account. The Company operates in two segments: principal lending and mortgage banking. Its target investments include senior loans, bridge loans, subordinated debt, preferred equity and other CRE investments. The Company is engaged in the mortgage banking business through its subsidiary, ACRE Capital LLC (ACRE Capital). In mortgage banking business, the Company directly originates long-term senior loans collateralized by multifamily and senior-living properties, and sells them to third parties pursuant to programs overseen by government agencies and government-sponsored enterprises (GSEs), such as the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), the Government National Mortgage Association (Ginnie Mae) and the Federal Housing Administration, a division of the United States Department of Housing and Urban Development (together with Ginnie Mae, HUD).
Principal Lending Business
The Company's Principal Lending Business includes all business activities of the Company, which represents investments in real estate related loans and securities that are held for investment. In its principal lending business, the Company targets borrowers whose capital needs are not being suitably met in the conventional bank market by offering customized financing solutions. Through the Company's manager, Ares Commercial Real Estate Management LLC, it has investment professionals located across the United States and in Europe and they directly source loan opportunities for the Company with owners, operators and sponsors of CRE properties.
Mortgage Banking Business
The mortgage banking business includes all business activities of the ACRE Capital business. The Company operates its mortgage banking business under a combination of programs, including Fannie Mae, Freddie Mac, Ginnie Mae and HUD. ACRE Capital is approved as a Fannie Mae Delegated Underwriting and Servicing (DUS) lender, a Freddie Mac Program Plus Seller/Servicer, a Multifamily Accelerated Processing (MAP) and Section 232 LEAN lender for HUD, and a Ginnie Mae issuer. In the mortgage banking business, the Company utilizes such platforms to originate, sell and service multifamily and senior-living related loans. It also retains the rights to service the loans, which are known as mortgage servicing rights (MSRs), and receive fees for providing such services during the life of the loans.
Ares Commercial Real Estate Corp
245 Park Ave Fl 42
NEW YORK NY 10167-0002
Company Web Links
- BRIEF-Ares Commercial Real Estate increases, extends borrowing capacity
- BRIEF-Ares Commercial Real Estate files for mixed shelf
- BRIEF-Ares Commercial Real Estate on May 26 entered amendment to $50 mln bridge loan warehousing credit and security agreement
- U.S. RESEARCH ROUNDUP-Weatherford, General Motors, Endo International
- BRIEF-Ares Commercial Real Estate Q1 EPS $0.18