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ARCP to Buy GE Capital’s Net Lease Restaurant Portfolio in $807M Deal

ARCP to Buy GE Capital’s Net Lease Restaurant Portfolio in $807M Deal

American Realty Capital Properties Inc. entered into an agreement to purchase a portfolio of 471 net lease properties from GE Capital for $807 million. The portfolio is made up primarily of nationally recognized restaurants, including IHOP, Jack in the Box, Golden Corral, Burger King, Arby’s, Taco Bell, Applebee’s, Wendy’s, Logan’s Roadhouse and Denny’s.

The firm plans to finance the acquisition with currently available debt.

ARCP expects that the portfolio will remain 100 percent occupied, with the average remaining lease duration of nine years. The acquisition will help diversify the credit concentration within the firm’s overall net lease holdings by adding 137 new tenants.

“This transaction allows us to deliver on our promise to acquire $1.1 billion of properties, consistent with our investment strategy, and do so earlier than expected in 2013 at a cap rate in excess of 7 percent,” said ARCP CEO and Chairman Nicholas S. Schorsch in a statement. “This acquisition solidifies the company’s position as the fastest growing single tenant net lease REIT. We are pleased to have forged this agreement to purchase a portion of the formerly publicly traded Trustreet Properties Inc. portfolio from GE Capital, which bolsters and further diversifies significantly our net lease portfolio.”

 

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