ACRES COMMERCIAL REALTY CORP. ANNOUNCES COMPLETION OF MERGER, INTERNALIZATION AND PRIVATE NOTES OFFERING

ACRES Commercial Realty Corp. (NYSE: ACR ) (the "ACR" or "Company") announced today that it has completed its previously disclosed acquisition of ACRES Capital Corp. (" ACC ") in an all-stock transaction (the " Merger ") and transitioned from an externally-managed REIT to an internally-managed REIT (the " Internalization "). Upon closing of the Merger and Internalization, the Company issued approximately 7.5 million shares of ACR common stock to ACC stockholders as merger consideration and terminated the existing Management Agreement. The net increase in ACR common shares outstanding is approximately 6.3 million shares after giving effect to the elimination of ACR shares held by ACC in consolidation. "The entire ACRES team is excited to have completed this transaction. Collectively, we will own over forty percent of ACR common shares and are highly motivated to drive value for all stakeholders. We believe this combination will enable the company to continue to meet the needs of our customers as they turn to ACRES for capital and service. We look forward to the next phase of growth for the company," said Andrew Fentress Chairman of the Board and Mark Fogel President of ACRES Commercial Realty Corp. The Company also announced today that it has completed a private placement of $200 million of 8.625% Senior Secured Notes due 2031 (the " Notes "), pursuant to a Note Purchase Agreement between the Company, the Purchasers party thereto and UMB Bank, N.A. (the " Collateral Agent "). The Company intends to use a portion of the proceeds from the sale of the Notes to repay in full its $150 million of 5.75% Senior Unsecured Notes upon their maturity in August 2026, with the remaining portion used for general corporate purposes. The Notes will mature on July 31, 2031 and will be secured on a first lien basis by the pledge of certain capital stock in its subsidiaries, residual equity interests in securitized financing vehicles and certain other CRE assets (the " Collateral "), and guaranteed by certain subsidiaries of the Company that granted security interests in the Collateral in favor of the Collateral Agent. "We are pleased to announce the successful completion of this refinancing with Raymond James who has been a trusted advisor and partner since our acquisition of the ACR contract six years ago," said Andrew Fentress Chairman of the Board and Mark Fogel President of ACRES Commercial Realty Corp. ACRES Commercial Realty Corp. is a public commercial mortgage REIT that is primarily focused on originating, holding and managing commercial real estate mortgage loans and equity investments in commercial real estate properties through direct ownership and joint ventures. The Company is dedicated to nationwide middle market lending with a focus on multifamily, student housing, hospitality, industrial and office properties in top U.S. markets.