$3B merger for realty groups; $400M in acquisitions planned for 2013

December 18, 2012 11:00AM

American Realty Capital Properties Inc. (ARCP) yesterday announced that it will acquire its sponsored REIT American Realty Capital Trust III in a $3 billion merger, GlobeSt reported. The deal is expected to close by the end of March 2013. Nicholas Schorsch, chairman and CEO of ARCP, told GlobeSt that the deal is “a very transformative transaction” for the company. He added that “it will change dramatically our size, our scale and, most importantly, our growth potential.”

ARCP focuses on single-tenant, freestanding, net-leased commercial real estate, as previously reported, and at the time it seemed unlikely it was seeking New York City Real estate. However, as reported this fall, American Realty Capital Trust’s portfolio encompasses multiple Walgreens in Brooklyn and Queens, as well as a FedEx in the Bronx.

The merger will significantly increase ARCP’s total square footage and properties. Currently, it has 148 properties; the merger will bring that number to 806. The square footage will get a boost to 18.9 million from 2.4 million square feet. In addition, rental revenue will tick in at $179.8 million from $25.6 million annually.

ARCP CEO Brian Block said the combined company will make $400 million in acquisitions in 2013 and $1 billion the following year. [GlobeSt]Zachary Kussin