This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

ARCP Sells Shopping Center Portfolio to Blackstone

Stocks in this article: ARCPBX

NEW YORK (The Deal) -- American Realty Capital Properties (ARCP) said Wednesday it would sell its shopping center portfolio to Blackstone Group (BX) in a $1.975 billion deal that would in part fund the REIT's previously announced purchase of Red Lobster's real estate.

New York-based ARCP said that the properties to be sold were previously slated to be spun off into American Realty Capital Centers Inc. The company in March said it would include 69 shopping centers into that new entity, which will now instead be acquired by Blackstone.

The announcement comes less than a week after ARCP said it would participate in Golden Gate Capital's planned $2.1 billion acquisition of Red Lobster from Darden Restaurants Inc. Golden Gate as part of that deal has agreed to a $1.5 billion sale-leaseback agreement with the REIT.

ARCP said it intends to recycle capital from the sale of the strip mall portfolio to fund the Red Lobster acquisition. The REIT also said that with the Red Lobster purchase it has already hit its 2014 acquisition goal of $3 billion, and is increasing its deal target for the full year to $4.5 billion.

American Realty chairman and CEO Nicholas S. Schorsch in a statement said the planned spinoff of the shopping malls "created visibility and optionality for ARCP" that the REIT was now capitalizing on.

"We now believe the sale of the multi-tenant portfolio will deliver the best value creation option to our shareholders and serve to enhance the clarity of our single-tenant, net lease investment strategy, further simplifying and rationalizing our business plan," Schorsch said.

ARCP officials estimate the portfolio of 500 Red Lobster locations it is to acquire has a cash capitalization rate more than 100 basis points above the shopping center portfolio. ARCP, an aggressive acquirer of commercial properties who last year bought Cole Real Estate Investments Inc. for $11.2 billion, also announced a secondary offering of 100 million shares of its common stock. The company said it would use the net proceeds of the offering to repay outstanding indebtedness and for other corporate purposes.

This is Blackstone's second large real estate transaction this week, following the firm's Monday deal to sell five office properties in Boston to a consortium led by Oxford Properties Group for $2.1 billion.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs