American Realty Capital Trust IV Acquires Two FedEx Ground Distribution Facilities and a CVS Pharmacy For $8.6M
American Realty Capital Trust IV, ("ARCT IV" or the "Company") announced today that it closed on the acquisition of two FedEx Ground distribution facilities located in Independence, Kansas and Ottumwa, Iowa and a CVS pharmacy located in New Castle, Pennsylvania. The aggregate purchase price of the three properties was $8.6 million, exclusive of closing costs. The Independence, Kansas and Ottumwa, Iowa FedEx Ground distribution facilities were purchased at capitalization rates of 7.7% and 7.6%, respectively, and the CVS pharmacy was purchased at a capitalization rate of 7.7% (calculated by dividing annualized rental income on a straight-line basis plus operating expense reimbursement revenue, less property operating expenses, by base purchase price).
The Independence, Kansas and Ottumwa, Iowa FedEx Ground distribution facilities contain approximately 23,400 and 29,300 rentable square feet, respectively, and are 100% leased to a subsidiary of FedEx Corporation (NYSE: "FDX"), which carries an investment grade credit rating as determined by major credit rating agencies. The CVS pharmacy contains approximately 10,000 rentable square feet and is 100% leased to CVS Caremark Corporation (NYSE: "CVS"), which carries an investment grade credit rating as determined by major credit rating agencies.
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