NEW YORK CITY—American Realty Capital Properties Inc. said Monday morning that Nicholas Schorsch had resigned Friday as the net lease REIT's executive chairman and from its board, and also stepped down from a comparable position with ARC Properties Operating Partnership LP. ARCP said Schorsch's successor as CEO, David S. Kay, had also resigned from both ARCP and the partnership, as had president and COO Lisa Beeson.

William Stanley, the lead independent director of ARCP's board, will serve as interim chairman and CEO until permanent replacements are named. The board's compensation committee has launch a search for a new chairman and a new CEO, and will hire a search firm to assist them.

“The actions taken today will stabilize the company and are necessary to strengthen future leadership and strategy, improve governance, and complete a separation from Nick Schorsch and his affiliates,” Stanley says. “These actions build on ARCP's significant real estate assets and asset management capabilities, and will further restore investor confidence in ARCP.”

Stanley adds, “The Board is focused on finding highly qualified and experienced leadership for the roles of CEO and independent board chairman, as well as establishing a best-in-class governance structure. We thank David and Lisa for their service. We will continue to engage with all of our stakeholders and take actions that create long-term shareholder value.”

In connection with Schorsch's departure as executive chairman, ARCP will unwind all of its relationships with entities in which he maintains an executive or director-level role. He remains managing partner at AR Capital. Bloomberg reported Monday that ARCP's stock has lost more than a quarter of its value since accounting irregularities were reported in late October.

GlobeSt.com will report further on the developing story as information becomes available.