Prospective real estate investment trust American Realty Capital Properties completed its initial public offering, selling 5.58 million shares at $12.50 per share, and began being traded on the Nasdaq Capital Market with the symbol “ARCP” yesterday.
The REIT is one of nine sponsored by American Realty Capital, which launched American Realty Capital New York Recovery REIT in December 2009 to raise $1.7 billion for income-producing Manhattan properties. In July 2010, that trust picked up its first Manhattan building, paying $32.7 million for a 65,100-square-foot office property at 306 East 61st Street in Lenox Hill.
However, the REIT that went public yesterday is focused on single-tenant, freestanding, net-leased commercial real estate. Therefore, it’s unlikely the trust is eying New York City real estate. It currently owns 61 properties throughout the country, 60 of which are Citizen Bank retail outlets, including 11 in upstate New York. None of the leases expire before July 2016.
The IPO raised a total of $69.75 million, which it will use to acquire more properties and payoff debts. It will pay shareholders an annual dividend of $0.875 per share.
“In a period of historically low interest rates, and substantial market volatility,” American Realty Capital Chairman and CEO Nicholas Schorsch said, “strong real estate locations leased to investment-grade tenants should enable our shareholders to preserve capital, as well as pay and cover our 7 percent distribution.” — Adam Fusfeld