F inancial D igest
Mid Atlantic Real Estate Journal — July 12 - 25, 2013 — 11A
www.marejournal.com
ew York, NY — American Realty Capi ta l Proper- N 2,579 single tenant properties net leased to 470 tenants across 29 industries in 48 states ARCP to acquire American Realty Capital Trust IV in a Merger Transaction valued at $3.1 billion
IV will be converted into a right to receive, at the election of each ARCT IV stockhold- er, a fixed exchange ratio of 2.05 shares of ARCP common stock, valued at $31.02 based on ARCP’s volume weighted average stock price of $15.13 for the five trading days ended July 1, 2013, subject to ad- justment or cash payment at ARCP’s option to establish a guaranteed floor value of $30.62 per share. Alternative- ly, an ARCT IV stockholder may elect to receive $30.00 per share in cash, limited to the consideration paid with respect 25% of the ARCT IV shares outstanding. The portion of the consideration consisting of ARCP shares will be tax-free for ARCT IV shareholders. ARCP shares issued to ARCT IV stockhold- ers will not be subject to any “lockup.” Metzger and Nate Hyman of Eastern Union arranged the transaction. • $6 million for the refi- nance of a 70 unit multi-fam- ily property in Brooklyn, at 3.55 percent, on a 10 year term, and 30 year amortiza- tion. Shaya Ackerman of Eastern Union arranged the transaction. n University satellite campus in Harrisburg, where there are less than 10,000 students,” says Banas. “This made it chal- lenging to get agency financing but a perfect fit for one of our banking relationships. There was a substantial portion of equity cash out to the sponsors and the property just opened in September 2012, so there was really no financial history,” continues Banas. “The refinance that we ar- ranged paid back the construc- tion loan as well as a majority of the developer’s cash equity.” concludes Banas. n
Philadelphia, PA — DavidTurley,AnnaWesthoff and Janet Proscia of Cron- heim Mortgage advised on the $50 million refinance of a three-property, 750,000 s/f of- fice building portfolio located in suburban Philadelphia. The loan was provided by a national bank, which funded a non-recourse, moderately leveraged, 5-year facility. The one and two-story pro- fessional office buildings are occupied with a mix of small professional office, medical, corporate satellite, education, and government users. “Sponsorship bought the assets a few years ago with a As a result in part of this pending acquisition, ARCP has increased its 2014E ad- justed funds from operations (“AFFO”) guidance to $1.19 - $1.25 per share, equivalent to approximately 31% growth over 2013E AFFO per share at the midpoint of the respec- tive ranges. This projected AFFO growth rate leads the net lease industry. In addition to the projected impact of the acquisition of ARCT IV, revi- sions to 2014 guidance include the reduction of outstanding debt as well as refinancing of certain short- and medium- term borrowings to longer term indebtedness in order to maintain financial flexibility and further ARCP’s intention to seek an investment grade corporate credit rating. Fur- ther, ARCP will increase its annualized dividend to $0.94 per share, effective upon the New York, NY — Mark Scott’s Commercial Mort- gage Capital (CMC) recently closed $55 million worth of loans with life company cor- respondents and investment banks. CMC arranged a $21-million loan for iPark Hudson Build- ing Three, a recently renovat- ed 152,149 s/f office/research
earlier to occur of the close of this merger and the close of ARCP’s previously announced merger with CapLease, Inc. The dividend increase will be ARCP’s 7th consecutive quar- terly dividend increase. Commenting on the trans- action, ARCP’s chairman and CEO, Nicholas Schorsch , said, “Today’s announced merger solidifies our lead- ership position in the net lease real estate sector. Less than two years after listing ARCP on NASDAQ, subject to completing this acquisition and the CapLease merger, together with the recently announced portfolio purchase from GE Capital and other organic acquisitions, we will have increased our enter- prise value from $250 million in September 2011 to $10 billion, becoming the second largest net lease REIT. n value-add investment strategy. They improved the assets with the help of significant build- ing upgrades and a focus on brand/image enhancement,” noted Westhoff. “The institu- tional prejudice against older suburban office was a chal- lenge, but one we were able to overcome.” “Under the client’s direction, we conducted an extensive marketing effort to create op- tions representing a variety of financing strategies. In the end, they executed a bank facility that offers low-cost, flexible financing at an attrac- tive leverage point,” Turley added. n
t i e s , I n c . ( “ ARCP ” ) and Ameri- can Realty C a p i t a l Tr u s t I V , Inc. (“ARCT I V ” ) a n - nounced that t h e y h a v e
be approximately $10 billion, with annualized rent of more than $527 million, of which 57% will be from investment grade tenants. The merger agreement has been approved by the independent directors of both companies, and is sub- ject to customary closing con- ditions, including stockholder votes by both companies. The acquisition is expected to close by the end of the third quarter of 2013. Stockholders of record for each company as of July 2, 2013 will be entitled to vote on the proposals re- lated to the merger. Pursuant to the terms of the merger agreement, each outstanding share of ARCT mixed-use portfolio of 4 prop- erties in the Bronx, on a 7 year term. This loan featured 80 percent LTV and 2 years IO. Eli Breiner of Eastern Union arranged the transaction. • $8 million for the refi- nance of a 52 unit mixed-use property in Manhattan, at 3 percent, on a 7 year term and 30 year amortization. David John Banas and Kristo- pher Wood , both directors in MMCC’s Philadelphia office, have arranged the following refinance debt: • $11.7 million to refinance a 66-unit student housing prop- erty in Middletown, Pa. • $6 million to refinance a 580-unit hotel in Syracuse, N.Y. • $5.7 million to refinance a 31,000 s/f classAoffice building in Phoenixville “The Middletown property is located at the Penn State
signed a definitive merger agreement wherebyARCPwill acquire all of the outstanding shares of ARCT IV for stock and cash in a transaction valued at approximately $3.1 billion. As a result of this and other previously announced acquisitions, ARCP will own 2,579 single tenant proper- ties net leased to 470 tenants across 29 industries in 48 states. ARCP’s projected pro forma enterprise value will New York, NY — Com- mercial mortgage brokerage firm Eastern Union Fund- ing announced that it has arranged approximately $60 million in financing for com- mercial real estate properties in New York City. Select transactions include: • $25.6 million for the refi- nance of a multi-family and PHILADELPHIA, PA — Marcus &Millichap Capital Corporation (MMCC) ar- ranged in excess of $244,000,000 in debt during the month of May 2013, according to Wil- liam Hughes , senior vice president and managing direc- tor of MMCC. “May was a busy month for us,” says Hughes. “We closed more than 100 transactions, thanks in a large part to our firm’s initiative and deep mar- ket knowledge. The range of these transactions, in terms of property sectors and challeng- es, is a testament to the power
Eastern Union arranges $60 million in New York City financing
Cronheim completes $50m financing assignment in PA
Marcus & Millichap Capital Corp. places $244m+ of the Marcus & Millichap platform,” adds Hughes.
building. In addition, Mr. Scott arranged an $18-million, long- term, self-liquidating loan for a 400 unit multi-family complex in Parsippany, NJ. Also in New Jersey, CMC arranged a $16- million, 10-year self-liquidating loan for a 140,000 s/f single- tenant office building located in Florham Park, NJ, a prime Morris County location. n CMC closes $55 million in loans
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