ACRES Commercial Realty

CEO Mark Fogel and CFO Eldron Blackwell have repositioned ACR since 2020 toward multifamily lending and improved financing resilience; book value per share increased to ~30 dollars and is up materially since ACRES took over management.

We credit underwriting and asset management, but we also note the inherent conflicts of an external model and that the internalization, while potentially aligning incentives, creates dilution and integration complexity. Board governance used a special committee and obtained a fairness opinion for the merger.

Overall, capable operators facing a complex transition.