On November 17, 2014, Nicholas S. Schorsch resigned from his role as chief executive officer of ARC Realty Finance Trust, Inc., effective as of that same date. Mr. Schorsch did not resign pursuant to any disagreement with the company. Mr. Schorsch also resigned from his role as chief executive officer of the company's advisor.

Simultaneously with Mr. Schorsch's resignation from his role as chief executive officer of the company, the company's board of directors appointed Peter M. Budko, currently the president and secretary of the company, to serve as the company's chief executive officer. In light of his appointment as chief executive officer of the company, Mr. Budko resigned from his roles as president and secretary of the company. Mr. Budko did not resign pursuant to any disagreement with the company.

Mr. Budko will also replace Mr. Schorsch as chief executive of the company's advisor. In light of his appointment as chief executive officer of the company's advisor, Mr. Budko also resigned from his roles as president and secretary of the company's advisor. Simultaneously with Mr. Budko's resignation from his roles as president and secretary of the company, the company's board of directors appointed Donald MacKinnon, currently the chief operating officer of the company, to serve as the company's president.

Mr. MacKinnon will also continue to serve in his role as chief operating officer of the company. Mr. MacKinnon will also replace Mr. Budko as president of the company's advisor, and will continue to serve in his role as chief operating officer of the company's advisor. Donald MacKinnon has served as the chief operating officer of the company and the company's advisor since January 2013.

Mr. Radesca has served as chief financial officer and treasurer of the company and the company's advisor since January 2013. On November 19, 2014, Messrs. Schorsch, Budko and Leslie D. Michelson each resigned as a member of the board of directors of the company.

None of Messrs. Schorsch, Budko or Michelson resigned pursuant to any disagreement with the company. Mr. Michelson served as an independent director and as a member of the audit committee since January 2013.

Also simultaneously with the resignations of Messrs. Schorsch, Budko and Michelson, the board of directors of the company appointed William M. Kahane as a member of the board of directors in accordance with the terms of the company's bylaws. William M. Kahane has served as president, chief operating officer, treasurer and secretary of ARC DNAV, the ARC DNAV advisor and the ARC DNAV property manager since November 2014, and had previously served as an executive officer and director of ARC DNAV, the ARC DNAV advisor and the ARC DNAV property manager from their formation in September 2010 until March 2012.