(Save the date: RealShare New Jersey comes to the Hyatt Regency, New Brunswick, NJ, September 19.)
CHESTER, NJ-American Realty Capital has acquired the French's Mustard headquarters in Chester for $10 million. The 100-year-old condiment company, a subsidiary of the British multinational firm Reckitt Benckiser Group, has five-and-a-half years remaining on its lease.
American Realty Capital calculates the capitalization rate on the deal at 9.64%.The building in Chester contains about 32,000 rentable square feet. French’s, which was the creation of two American brothers, debuted at the 1904 St. Louis World’s Fair. It has been headquartered in New Jersey since 1987, when it was purchased by Reckitt and merged with Durkee Famous Foods.
American Realty Capital, which is based in Maryland, said the Chester purchase represents the 23rd acquisition made since the successful close of its public offering in June. The publicly traded company owns and acquires only single-tenant, free-standing commercial real estate properties, most of which are net-leased to “investment-grade” tenants.
"We are pleased to add this property to our portfolio, and will continue to seek acquisitions such as this one which contributes yet another name brand to our stable of high quality tenants," says Nicholas S. Schorsch, chairman and CEO in a release. "This purchase will further enhance our portfolio's tenant mix and geographic diversification. We continue to take advantage of plentiful buying opportunities in the market consistent with our guidance model and our investment strategy."
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