Suneet Singal announces successful $350M real estate acquisition by FTE Networks Inc. & $100M Stock Distribution to the common shareholders of First Capital Real Estate Trust Inc.

NEW YORK, Dec. 20, 2019 /PRNewswire/ -- Suneet Singal, CEO of First Capital Master Advisor and Former Chairman and CEO of First Capital Real Estate Trust, Inc., announces successful $350 Million real estate acquisition by FTE Networks, Inc. and a $100 Million stock distribution to the common shareholders of First Capital Real Estate Trust, Inc. 

FTE Networks, Inc. FTNW ("FTE"), announced that it has signed a definitive agreement and has acquired the assets of Vision Property Management LLC ("Vision") and its affiliated assets which include more than 3,000 residential real estate assets in 46 states.

First Capital Master Advisor was instrumental in advising Vision with the transaction. The purchase price for Vision is approximately $350 million. The consideration includes a distribution of common and preferred stock of FTE valued at approximately $100M to the shareholders of First Capital Real Estate Trust Inc, a non-traded public REIT, at the direction and personal election of its former Chairman & CEO Suneet Singal.  Any such distribution will be subject to a registration under the Securities Act of 1933 or an applicable exemption from registration.

Committed to providing accretive investment opportunities to the retail investment channel, Suneet Singal had previously pledged assets worth $175M to First Capital Real Estate Trust Inc. (Formerly, United Realty Trust Incorporated) and acquired the external advisor to the REIT in September 2015. The $100M distribution to the common shareholders translates into a $20.00 per share exit, a gain over their original pricing paid of $10.45 per share and $12.49 per share. This exit pricing represents the one of the highest returns provided in the retail independent broker dealer channel alternative investment space since the last decade.

"I'm pleased with the outcome of providing a successful exit to the retail common shareholders representative of the multi-billion-dollar independent broker dealer channel.  We look forward to supporting the growth of the newly transformed company as shareholders," said Suneet Singal.

Vision's management team assembled its portfolio of houses over the past 10 years and will continue as senior executives of the Company and major shareholders. They will develop their strategy to acquire and build affordable housing properties for sale or for rent. FTE has assumed approximately $75MM in debt held by Vision it plans to refinance into a new lower cost credit facility including additional renovation capital allowing for the ability to capture additional revenue within the portfolio.

"We pride ourselves as experts in the residential real estate business in secondary markets around the US bringing home ownership and affordable for rent product to the middle and lower income class," said Vision CEO Alex Szkaradek. "Contributing our assets into FTE and structuring them into a residential real estate investment trust gives us the opportunity to scale our platform and allow investors the opportunity to participate in this under-represented investment class in the public markets.  We are thrilled as to this strategic partnership and look forward to delivering future shareholder results."

Media Contact: Zar Aamer, z.aamer@firstcapitalre.com

SOURCE First Capital Master Advisor