NEW YORK CITY- American Realty Capital Healthcare Trust, the non-traded REIT launched last year by American Realty Capital, said Thursday it is commencing an initial public offering of $1.5 billion in common stock, and a spokesman confirms that the IPO is under way. The announcement follows by a week the Securities and Exchange Commission’s declaration that ARC Healthcare’s registration statement was effective.

ARC Healthcare is offering 150 million common shares at $10 per share, according to a release. They’re being offered on a “reasonable best effort” basis through affiliate Realty Capital Securities LLC, based in Boston.

According to its August 2010 SEC filing for the healthcare venture, ARC believes it is now possible to buy high-quality commercial real estate, including medical office buildings and healthcare-related facilities, “at a discount to replacement cost and with significant potential for appreciation.”The REIT may invest in real estate equity in other real estate entities, and originate or invest in real estate debt. It has no plans to buy undeveloped land or make acquisitions outside the US.

ARC Healthcare marks the fourth in a series of sector-specific non-traded REITs launched by the ARC group of companies headed by chairman and CEO Nick Schorsch. In 2007, American Realty Capital Trust was launched, followed two years later by American Realty Capital New York Recovery REIT and Phillips Edison—ARC Shopping Center REIT.

Earlier this month, ARC Healthcare named Todd Jensen its chief investment officer and brought in Steve Leathers as VP of acquisitions. Jensen most recently helped build the healthcare real estate development and acquisition business at DASCO, while Leathers previously served as a senior member of the real estate investment management platform for Grubb & Ellis Realty Investors.

Previously, ARC and RCS tapped John Wilkins and Heather Gentry, both formerly of Grubb & Ellis, to assist in the rollout of the new venture. Wilkins is chief marketing officer at ARC Healthcare, while Gentry serves as VP of marketing at RCS.

NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.