NEW YORK CITY-In Nicholas Schorsch's third mega-deal in the space of a week, American Realty Capital Trust IV said Monday that it has agreed to buy a 986-property net lease portfolio from GE Capital for $1.45 billion. The deal follows American Realty Capital Properties' announcement on Friday that it would pay $807 million for 471 net lease assets from GE Capital, which in turn followed the news last Tuesday that ARCP would acquire CapLease for $2.2 billion.
Similar to the deal announced on Friday, today's transaction entails mainly of quick-service restaurant brands, and is part of the former Trustreet Properties portfolio that GE Capital acquired in 2007. The weighted average remaining lease is 10.6 years, according to a release.
“This well-constructed and highly diversified portfolio transaction with GE Capital enables us to efficiently deploy all of the remaining equity capital raised for American Realty Capital Trust IV within the next 60 days, well ahead of schedule,” Schorsch, chairman and CEO of ARCT IV, says in a release. “This high quality retail property portfolio represents a unique opportunity for the company.” As with last week's GE Capital deal by ARCP, the ARCT IV acquisition represents a cap rate “north of 7%,” adds Schorsch.
Within the next 60 days, ARCT IV expects to have completed its initial acquisitions stage with a portfolio of about $2.3 billion, including the GE Capital deal announced Monday. The REIT says it expects to complete the major portion of the GE Capital acquisition within 30 days and the balance shortly thereafter.
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