$44M Takes ACPT

ST. CHARLES, MD-DC’s Federal Capital Partners has entered into an agreement to acquire locally based American Community Properties Trust for $43.6 million, or all of ACPT’s shares at $7.75 per share, in cash. The per share price is a 17% premium to ACPT’s closing price on September 14, the day before ACPT said it was considering various strategic alternatives, including a possible sale of the company. FCP is making the acquisition through an equity fund called FCP Fund I. ACPT and FCP did not return calls to GlobeSt.com in time for publication.

If the deal goes through it will close prior to March 31, 2010. At least two-thirds of ACPT’s shareholders must approve the transaction. As part of the agreement, the Wilson family, which owns 50.68% of the outstanding voting shares, have agreed to vote their company common shares in favor of the deal. However, as part of the acquisition agreement, ACPT may consider other offers for the next 30 days. FBR Capital Markets is acting as financial advisor to the special committee of ACPT’s board of trustees.

Like many developers, ACPT, which specializes in community development, investment apartment properties, and property management services, has been buffeted by the recession. It reported a loss of $11 million, or $2.18 per share for the year and quarter ended December 31, 2008. As a result, the company realigned operations; it has streamlined management; laid off employees; and split the company into two segments.

FCP, for its part, has been focusing on distressed and opportunistic investments through FCP Fund 1, a $240-million equity pool raised in 2008. Earlier this year, the company acquired a $28-million senior secured mortgage loan on an existing residential project in Arlington, VA through that equity pool. The company is now acquiring ACPT’s shares through. The fund was set up to target both hard assets and paper, FCP co-founder and Partner, Esko Korhonen, told GlobeSt.com in an earlier interview.