CapLease Execs Will Join ARCP Post-Merger

NEW YORK CITY-CapLease's senior management team, including CEO Paul McDowell, will be joining American Realty Capital Properties when the $2.2-billion merger between the two companies closes. McDowell and his CapLease colleagues will be on the payroll of ARCP's subsidiary, ARC Advisory Services LLC, where they'll bring a total of nearly 100 years' net lease experience to bear.

Following completion of the merger, McDowell will join ARC Advisory as president of the office and industrial group. CapLease SVP Robert Blanz will continue in that capacity with ARC Advisory's office and industrial group, while also adding the title of head of acquisitions. President William Pollert and SVP and CFO Shawn Seale will become SVPs with ARC Advisory, while Paul Hughes, currently SVP and general counsel at CapLease, will join ARC Advisory as assistant general counsel.

“We could not be more pleased to add Paul McDowell, Shawn Seale, Robert Blanz , Paul Hughes and Bill Pollert to our advisory platform,” says ARCP chairman and CEO Nicholas Schorsch. “Each of these gentlemen adds to the depth, breadth and strength of our real estate team, importantly augmenting our office and industrial experience. These hires will add versatility and specialized knowledge to our industry leading real estate asset management business.”

Earlier this month, CapLease's stockholders voted to approve the merger, which is expected to close no later than Dec. 2. When it was first announced in late May, McDowell said the deal was “in the best interests of CapLease and our stockholders, who will receive a certain cash premium for their shares. We believe that the structure of this transaction creates the greatest value for all stockholders over both the near and long term.”

When the merger is finalized, each share of CapLease common stock will be converted into the right to receive $8.50 in cash, and each share of the company's Series A, Series B and Series C preferred stock will be converted into the right to receive the sum of $25 in cash plus unpaid dividends. In addition, ARCP will take on approximately $580 million of CapLease's $1.2 billion of outstanding debt and repay the balance.