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SEALY, TX-Less than a month after closing on a 153,000-square-foot FedEx facility in Houston, American Realty Capital Trust Inc. has bought again, this time acquiring a 14,850-square-foot, just-opened Walgreens store. The New York City REIT bought the Houston suburban Walgreens for just under $4 million with a cap rate of 8.12%.

“The key aspect is that both the FedEx facility and the Walgreens are new facilities, they fit into our demographic strategies and give us exposure to the southwest market,” says American Realty Capital Trust CEO Nicholas S. Schorsch. Schorsch tells GlobeSt.com that the cap rate on the building at 1808 Meyer St., combined with a credit-worthy tenant and a base annual rent of $310,000 was simply too good to pass up.

Schorsch says American Realty Capital Trust is in the business to acquire free-standing, single-tenant assets with a lot of time on the leases. The company also stays away from what are termed “destination locations.” Furthermore, “everything we buy has to be necessary real estate; necessary to the community,” Schorsch points out.

Though the FedEx facility and Walgreens are fairly new buildings, Schorsch says the selling point isn’t necessarily the newness of the facilities, as much as it involves the newness of the lease. “Many of our properties are core locations for banks or other users, with more life on them, but brand-new leases,” he remarks. The minimum lease term is at least 10 years, with most averaging in the 15-25-year range. The reason for the long lease is the REIT’s required hold period of five to seven years.

Schorsch says American Realty Capital Trust is looking at more product and has some deals pending. Though he declined to comment on specifics, “we have about 20 different deals, sale-leaseback in nature, currently in the pipeline,” he remarks.

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