For more retail coverage, click GlobeSt.com/RETAIL.
SCOTTSDALE, AZ-Spirit Finance Corp. has filed with the Securities and Exchange Commission for a proposed $300-million initial public offering of shares of its common stock.
The locally based REIT, which focuses on single-tenant, net-leased real estate, was formed in August 2003 by Morton H. Fleischer and Christopher H. Volk, two senior executive officers of Franchise Finance Corp. of America, which was later sold to GE Capital Commercial Equipment Financing in August 2001 for $2.1 billion. Fleischer now holds the chairman and CEO position while Volk is president and COO.
According to SEC documents, the REIT intends "to be one of the limited sources of capital that provides comprehensive, customized real estate financing solutions in significant dollar amounts (in excess of $25 million)…real estate financing solutions take the form of sale-leaseback transactions and, to a lesser extent, mortgage loans and will, to a limited extent, include construction, equipment and corporate loans."
Spirit Finance, which posted revenue of $5.9 million for the first half of the year, boasts a portfolio of real estate and mortgage and equipment loans for 180 properties in 29 states in the US. The portfolio was valued at roughly $341 million as of Aug. 31. The real estate assets include restaurants, interstate travel plazas, movie theaters, automotive parts stores, electronics retailers, educational facilities and specialty retailers.
The REIT's SEC documents say: "We intend to continue to focus on sale-leaseback financing and the acquisition of real estate in the future, but may also provide other financing products to meet the needs of our customers."
The REIT has binding purchase agreements to make an additional $47.1 million of real estate investments. It has identified potential investments of about $2.1 billion.
The REIT seeks to trade on the New York Stock Exchange under the ticker symbol "SFC" after the IPO, which is underwritten by Banc of America Securities LLC and Citigroup Global Markets Inc. Spirit Finance was unable to contribute due to SEC "quiet period" regulations.
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