NEW YORK CITY—Having already agreed to take American RealtyCapital Properties' shopping center portfolio off itshands for $1.98 billion, the Blackstone Group isnow bringing in a partner. The New York City-based private equitygiant and Beachwood, OH-based DDR said Thursdaythey had forged a joint venture to acquire the 76-asset portfolio,with Blackstone owning 95% of the JV's common equity and DDR theremaining 5%.

Accordingly, ARCP, also headquartered in New York, said Thursdaythat it had executed on a purchase and sale agreement to the JV,with the all-cash deal expected to close late in the third quarter.The REIT's president, David S. Kay, says the salewill allow the company “to accretively recycle the capital from ourmulti-tenant business into Red Lobster and our single-tenant,self-originated acquisition strategy.”

ARCP, which inherited the multi-tenant portfolio as part of itsmerger with Cole Real estate Investments, had considered otheroptions including spinning off the properties into a separate REIT.A few days before announcing the portfolio sale to Blackstone, ARCPacquired more than 500 Red Lobster locations in a $1.5-billion sale-leaseback deal.