American Realty Capital Properties, Inc. (“ARCP”) announced a definitive merger agreement to acquire all of the outstanding shares of American Realty Capital Trust IV (“ARCT IV”) in a $3.1 billion transaction whereby ARCP will own 2,579 single tenant properties net leased to 470 tenants across 29 industries in 48 states. Proskauer served as counsel to ARCP and ARCT IV. The deal is expected to close in the third quarter of 2013.
“This transaction enhances ARCP’s scale and further diversifies its tenant and asset base,” said Peter M. Fass, Proskauer Partner and co-head of the firm’s Real Estate Capital Markets Group. “Upon closing, the combined entity will become the second largest net lease REIT and have a well diversified real estate pool. Together with the recently announced CapLease merger and portfolio purchase from GE Capital and other organic acquisitions, ARCP will have an enterprise value of $10 billion.”
Earlier this year, the Group advised American Realty Capital Trust IV in its acquisition of a net lease retail portfolio of properties from General Electric Co’s (GE) financial arm for $1.45 billion, and American Realty Capital Properties in a separate purchase of a net lease retail portfolio from GE for $807 million. In May, the Group advised on American Realty Capital Properties merger agreement to acquire CapLease Inc. in a $2.2 billion transaction. In March, the Group advised on American Realty Capital Properties bid to acquire Cole Credit Property Trust III for $9.7 billion, as well as on American Realty Capital Properties acquisition of American Realty Capital Trust III to become one of the largest publicly traded REITs in the U.S., with a total enterprise value exceeding $3 billion.
In addition to Peter Fass, the team includes Partners Daniel Ganitsky (M&A) and Les Loffman (Tax); Special Tax Counsel Tim Donovan (Tax); and Associates Mike Ellis (Corporate), Julie Kim (Corporate), Adela Cho (Corporate), Leon Volchyok (Corporate), Martha Rose (Corporate) and Raj Bandla (Corporate).
