NEW YORK CITY-In two separate transactions, companies under the American Realty Capital umbrella have closed on $1.3 billion in net lease acquisitions from GE Capital. American Realty Capital Properties Inc. and American Realty Capital Trust IV, both of which count Nicholas Schorsch as chairman and CEO, have bought a total of 824 properties in the former Trustreet Properties portfolio owned by GE Capital, concentrated in the restaurant sector.
The larger of the two deals was ARCP’s $774-million buy of 447 properties, whittled down from the original 471 assets in the portfolio. Ten nationally recognized restaurant brands—IHOP; Jack in the Box; Golden Corral; Burger King; Arby’s; Taco Bell; Applebee’s; Wendy’s; Logan’s Roadhouse; and Denny’s—represent 63% of the portfolio’s NOI, ARCP said Friday.
Aside from the GE Capital portfolio, ARCP year to date has acquired 81 additional properties for a total purchase price of $366.6 million. That means the company has already exceeded its 2013 acquisition projections as the second quarter winds down.
Further, there’s the $2.2-billion merger between ARCP and CapLease, which is expected to close by the end of Q3. When it closes, Schorsch says in a release, it will create a $6.9-billion company, “adding a team of real estate professionals with an exemplary skillset in building, acquiring and managing high quality, net lease office and industrial assets.”
ARCT IV on Friday said it paid $528.2 million to buy 377 net leased retail properties from GE Capital. The REIT will be acquiring the remainder of the former Trustreet portfolio, as well: a deal valued at up to $920 million is expected to close in the next quarter.
Regarding the ARCT IV deal for 377 assets that closed Friday, Schorsch says it’s important for several reasons. “First, it positions the company, with substantial capital having been invested, to pursue its strategic liquidity options immediately, in a market that has proved very receptive for net lease REITs,” he says in a release. “Second, it further diversifies our property portfolio with a continuing focus on well-branded retail locations that provide essential goods and services. Third, it is testimony to the hard work and dedication of our acquisitions team, who thoroughly evaluated 377 properties in only three weeks.”