Ballard Spahr advised RAIT Financial Trust (NYSE:RAS) and a Special Committee of its Board of Trustees on the completion of the internalization of the management of Independence Realty Trust (NYSE MKT:IRT). RAIT sold its subsidiary, Independence Realty Advisors, LLC, previously the external adviser to IRT, and certain assets of the company’s subsidiary, Jupiter Communities, LLC (d/b/a RAIT Residential), to IRT for $43 million. The transaction allows IRT to internalize its adviser and property management functions.

As part of the IRT internalization transaction, IRT previously repurchased all 7.3 million shares of IRT common stock owned by certain RAIT subsidiaries for $62.2 million. As a result of transactions consummated in connection with the internalization of IRT’s management, RAIT received aggregate proceeds of $105.2 million. RAIT was able to deconsolidate IRT from its financial statements and is expecting to achieve significant annual expense savings.

The Board of Trustees of RAIT formed a Special Committee to provide an objective evaluation of the transaction. The committee recommended the transaction to the Board of Trustees, which unanimously approved it. The Ballard Spahr Business and Finance team that advised the company and the committee was led by Partners Justin P. Klein and Katayun I. Jaffari and included Associates Jane E.R. Siegfried and Kaleena F. Laputka.

RAIT Financial Trust is an internally managed real estate investment trust that provides debt financing options to owners of commercial real estate and invests directly into commercial real estate properties located throughout the United States. Independence Realty Trust, Inc., is a publicly held real estate investment trust that owns apartment properties.