RAIT_Financial_Trust

RAIT Financial Trust

RAIT Financial Trust

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RAIT Financial Trust (Resource Asset Investment Trust) is a real estate investment trust owned by Fortress Investment Group that manages commercial real estate loans and properties. It is headquartered at 130 West 42nd Street, New York City.[1]

Quick Facts Founded, Headquarters ...

History

RAIT was founded in August 1997 by Resource America, Inc. at which time it was led by Betsy Z. Cohen.[1][2]

In January 1998, the company became a public company via an initial public offering.[3]

In December 2006, the company merged with Taberna Financial Realty Trust.[4]

In August 2007, during the subprime mortgage crisis, the company suffered due to its exposure to American Home Mortgage.[5]

In July 2009, the company sold its residential mortgage portfolio to Angelo Gordon for $15.8 million and took a $62 million loss on the sale.[6]

In March 2014, Urban Retail Properties became a subsidiary of the company.[7]

In November 2015, the company signed a lease to move its offices from the Cira Centre.[8]

In May 2017, the company sold UBS Plaza for $14 million.[9]

In December 2018, the company sold PlazAmericas.[10]

In August 2019, after defaulting on its bonds, RAIT filed bankruptcy and agreed to be acquired by Fortress Investment Group for $174.4 million.[11]

Magnetar Capital, a hedge fund, made a competing offer to acquire the company but the offer was rejected by a judge in December 2019.[12]

References

  1. [1]
    "Overview". RAIT Financial Trust.
  2. [2]
    Kostelni, Natalie (September 10, 2007). "Housing misery hits RAIT". American City Business Journals.
  3. [3]
    "IPOs for the fearless". CNN. January 12, 1998.
  4. [4]
    "RAIT merger complete". American City Business Journals. December 11, 2006.
  5. [5]
    Dunham, Kemba J. (August 15, 2007). "Home-Loan Woes Hit Commercial REITs". The Wall Street Journal.
  6. [6]
    Kostelni, Natalie (July 22, 2009). "RAIT unloads loans, takes loss". American City Business Journals.
  7. [7]
    "RAIT Financial Trust Acquires Retail Centers for $50.8 Million". Business Wire. September 18, 2014.
  8. [8]
    Kostelni, Natalie (November 13, 2015). "RAIT Financial Trust leaving Cira Centre, wants to be back in Center City". American City Business Journals.
  9. [9]
    Reilly, Mark (May 26, 2017). "UBS Plaza in St. Paul sells fetches $14 million in sale". American City Business Journals.
  10. [10]
    Pulsinelli, Olivia (December 21, 2018). "Houston real estate firm buys former Sharpstown Mall". American City Business Journals.
  11. [11]
    Yerak, Becky (August 31, 2019). "RAIT Financial Trust Files for Bankruptcy". The Wall Street Journal.
  12. [12]
    Yerak, Becky (December 5, 2019). "RAIT Financial Shareholders Fail to Derail Fortress Bankruptcy Bid". The Wall Street Journal.
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