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

As part of the transaction, RAIT has agreed to sell back to IRT 7.3 million common shares in IRT that RAIT currently owns. Based on the current market price of IRT’s common stock as of September 23, 2016, the total proceeds to RAIT including the sale of its shares in IRT is expected to be approximately $120 million, before fees and expenses. RAIT expects the stock purchase to close within one month, subject to certain conditions. The internalization transaction is expected to close by the end of this year, subject to customary closing conditions and adjustments, including the successful underwritten offering by IRT of at least $83 million of IRT stock.

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 Committee was Justin P. Klein, Katayun I. Jaffari, Saba Ashraf, Diane A. Thompson, Jane E.R. Siegfried, Kaleena F. Laputka, T. Conrad Bower, John R. Sharrar, and Zachary Gorman.

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.