American Realty to spin off shopping center portfolio

Owner of Macy's megastore to hive off $2.2B in retail properties

Nicholas Schorsch
Nicholas Schorsch

American Realty Capital plans to spin off its $2.2 billion portfolio of multi-tenant shopping center properties into a publicly traded real estate investment trust.

The Manhattan-based global real estate firm will own 25 percent of the new REIT, dubbed American Realty Capital Retail Centers of America, according to the company’s website. Investors will receive a share of the REIT for every 10 shares they own of American Realty.

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Net operating income for the new property trust is expected to reach $139 million in 2014, the company told Bloomberg.

The firm, one of the biggest landlords for single-tenant buildings in the U.S., has been active in retail real estate as of late. In October of last year American Realty acquired Cole Real Estate Investments, a REIT which holds 3,700 retail, office and other properties, for $6.85 billion. The firm currently has spinoff trusts for hospitality and medical properties, and owns the retail space that Macy’s megastore leases at 1440 Broadway[Bloomberg] – Angela Hunt