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American Realty Capital Properties Acquires 447 Net Lease Properties From GE Capital For $774 Million, Part Of The Formerly Public Trustreet Properties Portfolio

Stocks in this article: ARCP

NEW YORK, June 28, 2013 /PRNewswire/ --  American Realty Capital Properties, Inc. ("ARCP" or the "Company") (NASDAQ: ARCP) closed today on its previously announced acquisition of 447 net lease properties at a purchase price of $774 million from certain affiliates of GE Capital.  This property portfolio includes assets primarily net leased to nationally recognized restaurant operators including: IHOP; Jack in the Box; Golden Corral; Burger King; Arby's; Taco Bell; Applebee's; Wendy's; Logan's Roadhouse; and Denny's. These ten nationally recognized brands constitute 63% of the net operating income of the 447-property portfolio, part of formerly public Trustreet Properties Inc.  The 447 properties acquired represent the entire portfolio acquisition after the parties agreed to remove 24 properties from the originally announced 471 property portfolio, as permitted under the purchase and sale agreement.

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Apart from the GE Capital portfolio acquisition, ARCP has acquired in 2013 an additional 81 properties from its organically developed pipeline for a purchase price of $366.6 million, exclusive of closing costs, at a cap rate of 8.1%.  Thus the Company's total acquisitions in 2013 as of June 30 th total $1.14 billion, surpassing it previously announced purchase projections for all of 2013.

ARCP also reaffirmed its earlier announcement that it expects to complete its merger with CapLease, Inc. ("CapLease") by the end of the third quarter of 2013.  ARCP sees this union as a transformative transaction in which ARCP will add 71 high credit quality, primarily net leased properties, further diversifying its portfolio.

Nicholas S. Schorsch, Chief Executive Officer and Chairman of ARCP commented, "We are pleased to announce our acquisition of this diverse net lease portfolio from GE Capital.  These properties represent a diverse and accretive addition to our best-in-class net lease real estate portfolio. We completed this transaction quickly while adding $366.6 million of other net lease properties in 2013.  Currently for 2013, we have bought approximately $1.14 billion of total acquisitions through June. We will continue to augment our asset base and our management team with our expected merger with CapLease, creating a $6.9 billion company by the end of the third quarter of 2013, and adding a team of real estate professionals with an exemplary skillset in building, acquiring and managing high quality, net lease office and industrial assets.  We will continue to be deliberate in evaluating our options as we expect to grow the Company further through organic purchases and strategic acquisitions."

Mike Weil, President of ARCP added, "We want to thank GE Capital for working closely and collaboratively with us to close this milestone transaction in record time. Through the efforts of our dedicated management and acquisition team, we added a high-quality, diverse portfolio of branded net lease properties housing vibrant business models at a cap rate of roughly 7%. We are thrilled to have assembled one of the strongest net lease REIT portfolios available to the institutional and retail investor in the public, traded markets, diversified across industry, geographical location and tenant." 

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