American Realty Plans $30M Houston Industrial Buy

June 3, 2009

American Realty Capital Trust Inc. plans to acquire a newly constructed freight facility entirely net leased to FedEx Freight in the coming weeks. The firm will buy up the 152,600-square-foot Houston-area facility by June 15 for some $30.9 million from seller PinPoint Commercial. FedEx currently occupies the space under an existing lease with a primary lease term of 15 years, having commenced in October 2008. The agreement includes two successive five-year extensions. The base annual rent increases by 8 percent every five years. American Realty will finance the deal via a long-term, first mortgage loan from a major European bank, representing approximately 50 percent of the total purchase price; the remaining capital will be provided by the REIT.