Schorsch Strikes Again with Second GE Net Lease Deal for $1.5B

American Realty Capital Trust IV announced agreeing to buy from GE a 986-property retail portfolio for $1.45 billion.

Nicholas Schorsch’s company is on a shopping spree this past week, with no immediate end in sight. As the ink is still drying from a Friday deal ARCP closed with GE Capital on the purchase of an $807 million portfolio of 471 net lease properties, today its affiliate American Realty Capital Trust IV announced agreeing to buy from GE a 986-property retail portfolio for $1.45 billion. The deal comes on the heels of ARCP announcing early last week the purchase of CapLease for $2.2 billion.

Similar to Friday’s deal, today’s purchase agreement entails retail-concentrated tenants, including popular fast-food restaurants such as Wendy’s, Applebee’s, Burger King, Pizza Hut, KFC, Taco Bell, among others. The portfolio is mostly made up of long-term leases, with the weighted average remaining lease duration of 10.6 years.

“This acquisition exemplifies our focus on building one of the best-in-class, lowest leveraged, long-term, retail focused net lease portfolios in the REIT industry’s history,” said Schorsch in a news release. “The completion of our acquisition program positions us to commence our active review of strategic alternatives in a market that has proved extremely supportive to net lease companies.”

ARCT IV plans to finish its initial purchase stage in the next 60 days, with an assembled portfolio of around $2.3 billion, which entails the newly acquired $1.45 billion GE Capital portfolio, and $590 million of previously acquired properties. The REIT plans to conclude the major portion of GE Capital purchase within 30 days, using existing proceeds from its recently completed $1.7 billion equity raise, in addition to some portion of its $750 million recently announced commitments, as needed, per release.