American Realty Capital Trust, Inc. (ARCT) has acquired nine freestanding Walgreens pharmacies in New York for $54.6 million. The properties contain 122,963 aggregate square feet of gross leasable area, all of which is occupied by Walgreens.
Following is the addresses for each of the sites purchased:
• 9050 Erie Road, Angola, NY
• 301 Genesee Street, Auburn NY
• Mt Read & Maiden Lane Greece, NY
• East Ridge Road & Hudson Avenue, Irondequoit, NY
• Union Road & Michael Road, Orchard Park, NY
• 226 Liberty Street, Penn Yan, NY
• Broad Street & Cornelia Street, Plattsburgh NY
• 2329 James Street, Syracuse NY
• Long Pond & Ridge Road Greece, NY
The ownership of each of these properties is described as fee simple with the exception of the Long Pond & Ridge Road asset in Greece, which is leasehold ownership.
The original lease terms at commencement were 25 years with an average of 23.9 years remaining. Eight of the leases do not contain contractual rental escalations. One of the leases contains a contractual rental escalation of 10 percent in year 10 and year 25. The leases are triple net. The average annual base rent for the initial term is $3.8 million.
American Realty Capital Trust, Inc. funded the acquisition of the properties with $45.2 million of proceeds from the sale of common stock and the assumption of the outstanding debt balance of $9.4 million. The in-place debt is secured by the properties located in Irondequoit, New York and Penn Yan, New York, has a 5.9% interest rate, 25 year amortization and matures on January 1, 2015.
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