NEW YORK CITY-American Realty Capital Trust, Inc. has closed a $1.5-billion fund comprised of freestanding, single-tenant properties in its national portfolio, the company unveiled on Monday morning. The non-traded REIT--which focuses on net-leasing pharmacies, banks, restaurants and convenience stores in high-traffic locations to high credit quality tenants--expects to deploy all of its recently raised equity capital by the end of the third quarter, ARCT’s chairman and CEO Nicholas S. Schorsch tells GlobeSt.com.
“We are deploying our capital on a continuous basis,” says Schorsch, who explains ARCT has approximately 368 properties across the US, including 20 in New York State. “We’ve deployed and we’ve bought $742 million of assets this year already and our pipeline is very robust.”
As part of this transaction, the ARCT board of directions has retained Goldman Sachs as its financial advisor to explore liquidity options for the portfolio. “Their responsibility will be to help us and our board build a strategic alternative,” Schorsch says. “As a non-traded REIT, you are always looking for a liquidity event of some kind, whether that is a public listing or a sale of a company, or whether that is to grow the company for another year or two. Our focus is start the next steps in our strategic process.”
ARCT commenced its initial public offering of 150 million shares of common stock in January 2008, according to a company statement. On July 5, the REIT had issued the entire 150 million shares available in connection with its primary offering, as well as 2.8 million shares of common stock under the Dividend Reinvestment Plan. Total gross proceeds from these issuances were $1.6 billion, and as of July 11, the aggregate value of all share issuances and subscriptions outstanding was $1.7 billion based on a per share value of $10 per share, or $9.50 per share for shares issued under the DRIP, ARCT says.
The REIT is currently in the process of registering with US Securities and Exchange Commission to issue a second round of shares under DRIP. Schorsch says the transaction is a “real testament” to the clients of ARCT. “We are very appreciative of their loyalty and their focus,” he says. “They have really appreciated this asset class and have been very supportive of American Realty Capital.”
ARC began its IPO for its new fund, American Realty Capital Trust III, Inc. on March 31. The offering period will last until March 31, 2013, or until the target equity of $1.5 billion is reached. In addition, ARC’s Healthcare division, American Realty Capital Healthcare Trust Inc., has entered into an executory contract to potentially acquire 12 assets totaling 765,038 square feet for $257.5 million.
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