logo
Nicholas Schorsch's profile picture

Nicholas Schorsch

Also Known As Schorsch

CEO of American Financial Realty Trust

Education

  • -

Overview

Nicholas Schorsch is a is an American entrepreneur, investor, and philanthropist. Schorsch is the chairman, CEO, and co-founder of the investment services firm American Realty Capital. CEO of American Financial Realty Trust, Inc.(ARL)

Early career :

In 1995, he and his wife Shelley co-founded the Jenkintown-based American Financial Resource Group, which originally acquired operating companies in the printing, label, and financial services sector. Within two years, the company diversified into the acquisition of commercial real estate properties. In 1998, Schorsch learned of a merger between CoreStates Financial Corporation, a bank with whom he did business, and First Union Corporation. As a result of the pending merger, 106 of CoreStates' bank branches were set to close. Upon hearing this, Schorsch offered to buy every (vacant) bank branch building. He recalled in a 2005 interview in The New York Times, "They [the bank] thought I was a crazy man." The $22.3 million deal was completed within 37 days, and within 12 months he sold or leased 95% of the properties.

In 2002, American Financial Resource Group became American Financial Realty Trust, or AFRT. Schorsch served as the company's president, CEO, and vice chairman of the board of trustees, listing it publicly on the New York Stock Exchange in 2003. Shortly after, Schorsch was dubbed "The Bankers Landlord" by The Philadelphia Inquirer.[citation needed] In 2006, Schorsch left AFRT.

AR Capital and American Realty Capital Trust :

Schorsch moved to New York City in 2007 where he, along with William M. "Bill" Kahane, founded the investment services firm American Realty Capital, later renamed AR Capital as the sponsor expanded into alternative investments vehicles other than commercial real estate. Shortly thereafter, the AR Capital partnership expanded to include Michael Weil, president and chief operating officer, Peter Budko, executive vice president and chief investment officer, and Brian Block, executive vice president and chief financial officer. AR Capital's flagship investment program was named American Realty Capital Trust, Inc., or ARCT. Similar to American Financial Realty Trust, ARCT would invest in single-tenant commercial real estate properties leased to corporate businesses that provided other essential goods and services, such as Walgreens, CVS, Dollar General, and Federal Express. In March 2012, American Realty Capital Trust, Inc., listed on the NASDAQ, providing liquidity for its shareholders. Schorsch served as chairman of the company from inception until January 2013, when it merged with Realty Income Corporation (NYSE: O).

Schorsch founded American Realty Capital Properties Inc. or ARCP, later named VEREIT, in 2010. In October 2014, the company admitted to an accounting error of $23 million, leading to significant sales of the company's stock and a drop in its value by $3 billion. The company fired Chief Financial Officer Brian Block after an audit committee investigation, and said that financial information in its 2013 10-K and Q1 and Q2 2014 quarterly reports "should no longer be relied upon." Lawsuits followed, with investors claiming ARCP had misstated financials in order to inflate financial results. In December Schorsch resigned as chairman.

In September 2019, VEREIT entered into agreements to settle pending class action litigation against it regarding among other things alleged violations of Section 11 of the 1933 Act (In re American Realty Capital Properties, Inc. Litigation and the remaining opt-out actions), at a cost to VEREIT of $765.5 million. American Realty Capital, led by Schorsch, and its principals paid $225 million towards the settlement.

Early Life

Schorsch was born in Philadelphia, Pennsylvania, to Irvin G. Schorsch, Jr., and Anita (née Ulick) Schorsch. He worked for his family's scrap metal business starting at the age of 17, while attending Drexel University full-time, before taking over ownership of the business. He grew the business to millions of dollars in revenue and sold it for $50 million at age 23.

He next founded Thermal Reduction Corporation, a metal product manufacturing business. Over ten years he built up the company through a series of mergers and acquisitions, eventually selling his interest in 1994.

Career

  • American Financial Realty Trust - CEO

Reference

Sponsored
Sponsored
Our Offices
  • 10kInfo, Inc.
    13555 SE 36th St
    Bellevue, WA 98006
    Phone: +1 (425) 414-0184
  • 10kInfo Data Solutions, Pvt Ltd.
    Claywork Create
    11 km, Arakere Bannerghatta Rd, Omkar Nagar, Arekere,
    Bengaluru, Karnataka 560076
    Phone: +91 80 4902 2100
4.2 20250131