American Realty Capital Properties Inc., the landlord that’s trying to repair its reputation after an accounting scandal last year, named Hugh Frater as non-executive chairman and added another independent director to the board.
Frater is currently chairman of Berkadia Commercial Mortgage LLC, which is owned by Berkshire Hathaway Inc. and Leucadia National Corp. Julie Richardson, formerly a partner and managing director at Providence Equity Partners LLC, also joined the board of American Realty Capital Properties, also known as ARCP, the Phoenix-based company said in a statement Wednesday. The appointments are effective immediately.
ARCP, the biggest owner of U.S. single-tenant properties, last month named Glenn Rufrano as its chief executive officer and said two directors will leave. Rufrano is the former CEO of brokerage Cushman & Wakefield Inc. William Stanley, who had been ARCP’s interim CEO since December and was interim chairman, will remain as a director.
“These appointments represent a major milestone in the board’s stated goal of reconstituting the board,” Thomas Andruskevich, a director who led the search for the new CEO and board members, said in the statement. “Coupled with Glenn Rufrano’s appointment as CEO, the new directors provide additional public company leadership experience as well as proficiency in real estate, capital markets, investment management, credit and other relevant disciplines.”
ARCP executives including Chairman Nicholas Schorsch and CEO David Kay resigned last year after the disclosure of accounting errors that were intentionally concealed. The real estate investment trust, which owns about 4,650 properties in the U.S. and Canada, had been facing pressure from shareholders including Corvex Management to overhaul its board.
The departures of directors Leslie Michelson and Edward Rendell, announced last month, became effective Wednesday.