Business Context and Reporting Period
This Form 8-K is a current report filed by American Realty Capital New York City REIT, Inc. on November 25, 2014, regarding events occurring on November 20, 2014. The filing addresses a significant change in executive leadership within the Company, its advisor, and its property manager.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance and personnel changes rather than financial performance.
Material Changes
- Executive Appointment: Michael A. Happel was appointed Chief Executive Officer (CEO) of the Company, its advisor, and its property manager, effective November 20, 2014.
- Executive Resignation: Nicholas S. Schorsch resigned as CEO of the Company, its advisor, and its property manager, effective November 20, 2014.
- Role Continuity: Mr. Happel continues to serve as President and Secretary of the Company in addition to his new role as CEO.
- Reason for Departure: Mr. Schorsch's resignation was not due to any disagreement with the Company.
Management Commentary and Background
Mr. Happel, 51, has served as President of the Company and its affiliates since their formation in December 2013. He brings over 20 years of real estate investment experience across office, retail, multifamily, industrial, and hotel sectors. His background includes:
- New York REIT, Inc. (NYRT): Served as Executive Vice President and Chief Investment Officer since 2009; promoted to President in March 2014.
- Morgan Stanley & Co. (1988-2002): Co-head of acquisitions for Morgan Stanley Real Estate Funds (MSREF), involved in acquiring over $10 billion in assets. MSREF I and II generated gross internal rates of return of approximately 48% and 27%, respectively.
- Westbrook Partners (2002-2004): Joined a private equity firm with over $5 billion in assets under management.
- Atticus Capital (2004-2009): Head of real estate, focusing on REITs and publicly traded real estate securities.
There are no reportable related party transactions involving Mr. Happel under Item 404(a) of Regulation S-K.
Investor Verification Checklist
- Confirm the effective date of the leadership transition (November 20, 2014).
- Verify that Nicholas S. Schorsch's departure was not related to any disagreement with the Company.
- Review Mr. Happel's prior performance at NYRT and MSREF to assess his track record.
- Check for any subsequent filings regarding compensation arrangements for the new CEO.