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New York, NY
June 2, 2009
American Realty Capital Trust, Inc. ("ARCT" or the "REIT") anticipates acquiring by June 15, 2009, a newly constructed freight facility entirely net leased to FedEx Freight and guaranteed by FedEx Corporation (the "FedEx Facility"). FedEx Corporation is rated BBB by Standard & Poor's.
The purchase price, excluding closing costs and fees, is approximately $30.9 million. The primary lease term is fifteen years, having commenced October 16, 2008, and provides for up to two successive five-year extensions. The base annual rent increases by 8% every five years. The acquisition will be financed by a long-term, first mortgage loan from a major European bank, representing approximately 50% of the total purchase price; the remaining capital will be provided by the REIT.
The FedEx Facility is comprised of 152,640 square feet and is located in the Satsuma Station Industrial Park in the northwest corridor of Houston, TX. The property was a build-to-suit and is considered a "less-than-load" facility which allows products to move quickly across the country. ARCT will be acquiring the property from PinPoint Commercial, a leading developer of commercial and industrial properties throughout the United States.
"We are excited to add this single-tenant, investment-grade, net leased asset to our portfolio. This accretive addition to the REIT will further diversify its portfolio by tenant and geography, decrease its overall leverage, and allow us to continue to cover distributions from funds from operations," said Nicholas S. Schorsch, CEO of American Realty Capital.
American Realty Capital Trust, Inc., which invests in single-tenant, freestanding commercial real estate net leased long term to investment grade tenants, following this acquisition, will own a portfolio of 93 properties with a total purchase price of approximately $180.0 million, excluding acquisition related costs. ARCT anticipates rental revenues should allow the REIT to continue to cover fully distributions from funds from operations and be accretive to its annualized 6.7% distribution, paid monthly.
American Realty Capital is a real estate finance and investment firm formed by Nicholas S. Schorsch and William M. Kahane. As CEO and board member, respectively, the two were behind the growth of American Financial Realty Trust, where they acquired over 1,500 properties valued at more than $5 billion. In the last five years, ARC's executive team has collectively negotiated and closed on over $7 billion of bank branch and net-leased real estate. ARC sponsors American Realty Capital Trust, Inc., a publicly-registered, non-traded REIT acquiring single-tenant, freestanding properties net leased long term to investment grade and creditworthy tenants. Realty Capital Securities, member FINRA, SIPC, is the dealer-manager for ARCT.
This material does not constitute an offer to sell nor a solicitation of an offer to buy any securities described herein or otherwise. Only a prospectus for a specific securities offering makes such an offer. In that regard, the use of this material is authorized only when it is accompanied or preceded by a prospectus. Further, all information contained in this material is qualified by the terms of a current Prospectus of the offering of securities to which it relates, if any.
This material may contain forward-looking statements that involve assumptions, uncertainties and risks, some of which are set forth below. These statements are not guarantees and should not be regarded as representations that the results or conditions described in such statements, or that our objectives and/or plans, will be achieved.
A real estate investment program offering is subject to the following Risks: The failure to qualify, or maintain the requirements, to be taxed as a REIT would reduce the amount of income available for distribution and limit a REIT's ability to make distributions to its stockholders. No public market initially exists for a REIT's shares of common stock, and one may never exist for this or any other such type of real estate program. Securities are being offered on a best efforts basis. These are speculative securities and as such involve a high degree of risk. There are substantial conflicts among an offering and its sponsor, advisor, dealer manager and property manager. There is no assurance that the value of the real estate will be sufficient to return any portion of investors' original capital. Operating results will be affected by economic and regulatory changes that have an adverse impact on the real estate market and we cannot assure you that there will be growth in the value of the properties.
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Realty Capital Securities, LLC, Three Copley Place, Suite 3300, Boston, MA 02116, T 877-373-2522
American Realty Capital Trust, Inc., 405 Park Avenue, 15th Floor, New York, NY 10022, T 212-415-6500
American Realty Capital Advisors, LLC, 106 York Road, Jenkintown, PA 19046, T 215-887-2189
Realty Capital Securities, LLC (Member FINRA/SIPC), an affiliate of American Realty Capital Trust, Inc., is the dealer-manager for American Realty Capital Trust, Inc. Investors should consider a fund's investment objectives, risks, charges and expenses before investing. The Prospectus contains this as well as other important information. Carefully read and consider the information contained in the Prospectus before you invest or send money. The information on this site must be read in conjunction with the Prospectus in order to fully understand all the implications and risks of the offering of securities to which it relates. A copy of the Prospectus must be made available to you in connection with this offering.
Properties depicted in the photographs are of assets held in either American Realty Capital's current offerings or past real estate investment programs sponsored by American Realty Capital.
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