C-III Capital Partners Acquires Resource America for $207M

Resource America, Inc., a Philadelphia real estate investment and finance firm, announced that it has entered into a definitive agreement to be acquired by C-III Capital Partners LLC, a New York-based real estate investment company, for a total of approximately $207 million, or $9.78 per share. Resource America's Board of Directors unanimously approved the agreement, which is expected to close late in the third quarter or early in the fourth quarter of 2016, pending approval by Resource America stockholders, regulatory approvals and other customary closing conditions. C-III said in a statement that it intends to retain the leadership and staff of Resource America's asset management businesses. Proskauer represented C-III Capital Partners in the acquisition while Evercore served as exclusive financial advisors to Resource America.

"We are very pleased with this transaction, which we believe provides excellent value to our shareholders and positions the businesses that we have created for further growth," said Jonathan Cohen, President and CEO of Resource America. "C-III is a highly regarded real estate services and investment management organization with outstanding leadership, deep commercial real estate expertise and a management team, led by Andrew Farkas, that has a 30-year track record of acquiring and enhancing businesses and helping them flourish. This transaction should enable Resource America to focus on reaching a new level of excellence, which will benefit our employees, customers and partners."

Resource America is the external manager of one publicly traded REIT, four non-traded REITs and two other registered investment companies and focuses on capital-raising activities through the independent broker-dealer network. The combined company will manage over $25 billion of gross assets, and will be the owner or manager of over 70,000 apartment units across the U.S., the companies said.

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DRA Buys Inland Real Estate in $2.3B Deal

Inland Real Estate Corporation (IRC) announced that it has entered into a definitive agreement to be acquired by DRA Advisors in a deal valued at about $2.3 billion, including the assumption of existing debt. International law firm Proskauer represented Inland Real Estate in the deal, which, as of September 30, 2015, owned interests in 135 fee simple investment properties, including 36 owned through its unconsolidated joint ventures, with aggregate leasable space of approximately 15 million square feet. Inland's board has unanimously approved the merger, expected to occur in the first half of 2016, though it is contingent upon customary closing conditions, including the approval of stockholders, who will vote on the deal at a special meeting. Under the terms of the merger agreement, funds managed by DRA will acquire all issued and outstanding common stock of IRC for $10.60 per share in cash; upon completion of the transaction, IRC will become a privately held REIT.

"The Board has been focused on the options available to address the long-term discount at which the Company's shares have traded versus private market valuations and its shopping center REIT peers," said Thomas P. D'Arcy, non-executive chairman of Inland Real Estate Corporation. "The Board unanimously believes this all-cash offer is the best course of action to address this valuation gap and provide our stockholders with strong relative value for their investment."

IRC said it expects to pay regular monthly cash distributions of $0.0475 per share on the outstanding shares of its common stock until the merger closes. In addition, the company will pay monthly cash dividends of $0.169271 per share on the outstanding shares of its 8.125 percent Series A cumulative redeemable preferred stock and and $0.144791667 per share on the outstanding shares of its 6.95% Series B cumulative redeemable preferred stock.

For more news and information visit Blumberg Partners.