American Realty Capital Properties buys six Gulf Coast Red Lobster restaurants

BUYER: ARCP RL OG Port Charlotte FL LLC (American Realty Capital Properties Inc.), Phoenix, Ariz.
SELLER: Florida SE Inc.
PROPERTY: 1331 and 1341 Tamiami Trail, Port Charlotte
PRICE: $10.12 million
PREVIOUS PRICE: $1.74 million, October 1989

BUYER: ARCP RL Portfolio VII LLC,
PROPERTY: 2604 W. Brandon Blvd., Brandon
PRICE: $5.89 million
PREVIOUS PRICE: $560,000, July 1986

BUYER: ARCP RL Portfolio VII LLC,
PROPERTY: 11601 N. Dale Mabry Highway, Tampa
PRICE: $4.51 million
PREVIOUS PRICE: 350,000, July 1981

BUYER: ARCP RL Portfolio III LLC,
PROPERTY: 3801 Cleveland Ave., Fort Myers
PRICE: $3.89 million

BUYER: ARCP RL Portfolio VIII LLC
PROPERTY: 26320 N. U.S. Highway 19, Clearwater
PRICE: $3.34 million

BUYER: ARCP RL Portfolio V LLC,
PROPERTY: 17021 Palm Pointe Drive, Tampa
PRICE: $2.96 million
PREVIOUS PRICE: $950,000, October 2001

PLANS, DESCRIPTION:
American Realty Capital Properties Inc. purchased six Gulf Coast-area Red Lobsters restaurants as part of a larger acquisition of the seafood restaurant's sites nationwide. The firm purchased the Bradenton location for $5.89 million, two Tampa locations for $4.51 million and $2.96 million respectively, a Fort Myers location for $3.89 million and a Clearwater property for $3.34 million. The company also acquired a Red Lobster and an adjacent Olive Garden location in Port Charlotte for $10.12 million.

The purchase was done as part of American Realty Capital Properties' acquisition of more than 500 Red Lobster restaurant properties in a $1.5 billion sale-leaseback transaction. The transaction will be done in conjunction with Golden Gate Capital's acquisition of Red Lobster from Darden Restaurants Inc.

The overall purchase is reported to have a cash cap rate of 7.9% and a generally accepted accounting principles (GAAP) cap rate of 9.9%.

“We are extremely pleased to be acquiring these premium Red Lobster properties, located in key retail markets, with strong operating metrics and real estate fundamentals,” David S. Kay, president of American Realty Capital Properties, says in a press release. “With the built-in annual compounded rent growth, this transaction provides value to our shareholders and supports long-term earnings growth.”