ARCP names new CEO

Almost three months after its last chief executive resigned, American Realty Capital Properties Inc., formerly one of the cornerstones of Nicholas Schorsch’s real estate empire, has a new CEO.
ARCP on Tuesday afternoon announced that real estate industry veteran Glenn Rufrano will take over the reins, starting in April. Mr. Rufrano most recently served as chairman and CEO of O’Connor Capital Partners, a real-estate investment firm.
His resume also includes a stint as CEO of Cushman & Wakefield Inc., a real estate services company.
Mr. Rufrano will take over a company that has been in trouble since late October. That’s when ARCP announced that a $23 million accounting error over the first half of 2014 was intentionally uncorrected. Two senior accounting executives resigned immediately.
In mid-December, Mr. Schorsch, ARCP founder and then-chairman, resigned, as did its CEO, David Kay. William Stanley took over as interim CEO and, after Mr. Rufrano joins officially, will continue as interim chairman until the board completes its search for that position.
ARCP stock has suffered over the past few months, with its price down 25% since October 28. Shares of ARCP closed at $9.33 on Tuesday.
What’s more, ARCP’s nontraded REIT unit, Cole Capital, is struggling mightily. After the ARCP accounting errors came to light, a number of broker-dealers and clearing firms temporarily halted sales of Cole REITs.
(See: As fund-raising dries up at ARCP’s Cole Capital, senior executives head for the door
“ARCP is a young company, grown rapidly, which now requires a sound business path,” Mr. Rufrano said in a statement.
“I look forward to meeting the management team, thoroughly analyzing the assets and reviewing the details of the balance sheets while at the same time seeking thoughts from the institutional investor community,” he said. “Once complete, we will organize a strategic plan and begin execution to maximize the value of the core REIT assets, Cole Capital and the enterprise.”