American Realty Capital Trust Buying Jack in the Box, Firestone Properties
The following is culled from the 10-K filing from Jenkintown, PA-based American Realty Capital Trust, Inc. on Thursday:
On February 24, 2010, the Company acquired four Jack in the Box retail properties and intends to acquire an additional property. The properties are located in Oregon, Washington, Missouri and Texas totaling 11,930 square feet. The primary lease term under this net lease arrangement, pursuant to which Jack in the Box will be required to pay all operating expenses and capital expenditures in addition to base rent, is 20 years. Annual rent will be $0.9 million in the first year and the lease provides for rent escalations every five years of the lesser of CPI over the prior five year period or 10%.
The purchase price for all five properties will be approximately $9.8 million, inclusive of closing costs and fees, and will be financed with the proceeds from the sale of common stock and a mortgage note of $5.7 million which bears an interest rate of 6.43% and matures February 2015.
On February 26, 2010 and March 15, 2010, the Company acquired six Bridgestone Firestone retail properties and intends to acquire an additional six properties. The properties are located Texas, Colorado, New Mexico, Kansas, Arkansas and Louisiana totaling 93,366 square feet. The primary lease term under this net lease arrangement, pursuant to which Bridgestone Firestone will be required to pay all operating expenses and capital expenditures, with the exception of roof and structure which is the responsibility of the Company, in addition to base rent, is 15 years with a remaining lease term of 13.8 years. Annual rent will be $2.1 million in the first year and the lease provides for rent escalations of 6.25% every five years
The purchase price for all twelve properties will be approximately $26.6 million, inclusive of closing costs and fees, and will be financed with the proceeds from the sale of common stock.
