Federal Capital closes $43m take-private

The Washington DC-based private equity real estate firm has closed the deal to acquire developer and operator, American Community Properties Trust, through its $240m FCP I fund.

Federal Capital Partners has closed a deal to acquire the listed development company American Community Properties Trust for $43.6 million

The take-private was originally announced by the Washington DC-based private equity real estate firm in September last year. Today, the firm revealed it closed the cash merger on 30 December, after originally offering $7.75 a share for ACPT.

The deal was done through Federal Capital’s FCP Fund I, which raised $240 million in 2008 and is targeting real estate debt and equity investments in the mid-Atlantic region of the US, particularly in the metro Washington DC area.

ACPT owns 3,200 apartments, 230,000-square-feet of commercial property, as well as 4,000 acres of land entitled for 2,500 apartments, 8,500 homes and 5 million square feet of commercial development, according to Federal Capital. Since 1968, ACPT has also been the developer of the 9,100-acre planned community of St Charles, in Charles County, Maryland.

Lacy Rice, co-founding partner of Federal, said in the statement ACPT offered the firm a “rare opportunity” to acquire a large inventory of entitled home sites in Washington DC. Rice and fellow co-founding partner Esko Korhonen formed Federal Capital Partners (FCP) in 1999 after both working as principals’ at The Carlyle Group.