Unassociated Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, DC 20549

___________________
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported):
April 30, 2010
 
American Realty Capital Trust, Inc.
 (Exact Name of Registrant as Specified in Its Charter)
  
Maryland
 (State or Other Jurisdiction of Incorporation)

333-145949
  
71-1036989
(Commission File Number)
  
(IRS Employer Identification No.)
     
106 Old York Road
Jenkintown, PA
  
19046
(Address of Principal Executive Offices)
  
(Zip Code)
 
(215) 887-2189 (Registrant’s Telephone Number, Including Area Code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

 
 
 

 
Item 2.01 Completion of Acquisition of Assets.

On April 30, 2010, American Realty Capital Trust, Inc. (the “Company”) acquired a build-to-suit, freestanding, fee-simple distribution facility for FedEx Freight West, Inc. (“FedEx Freight West”), a wholly owned subsidiary of FedEx Corporation (NYSE: “FDX”).  The distribution facility is approximately 118,796 square feet and located in West Sacramento, California.  FedEx Corporation is the lease guarantor.  The aggregate purchase price was $34,211,889, inclusive of all closing costs and fees.

The original lease term at commencement was 15 years with 11.2 years currently remaining.  The lease contains rental escalations equivalent to the cumulative increase in the Consumer Price Index over the previous 30 months, with a minimum increase of 5% and a maximum increase of 10%.  The lease provides for 3 renewal options of 5 years each followed by one renewal option of 4 years.  The lease is double net with the landlord responsible for roof and structure.  The average annual base rent for the initial term is approximately $3,087,000. 

 
 
Address
  
 
 
City
  
 
 
State
  
 
 
Purchase Price
  
Compensation to
Advisor and
Affiliates (1)
4075 Channel Drive
  
West Sacramento
  
CA
  
$34,211,889
  
$485,000

(1)  Represents acquisition fee and financing coordination fee.

The Company financed the acquisition of the property with a 5-year first mortgage loan from Ladder Capital Finance, LLC, proceeds from the sale of our common stock and a $3,000,000 investment from an unrelated third party. The loan from Ladder Capital Finance, LLC will be secured by a mortgage on the property.

Mortgage Debt Amount
  
Rate
  
Maturity Date
$15,000,000
  
5.49%
  
5 years

Fedex Freight West provides regional less-than-truckload transportation services in the western United States.  It transports general commodities. The company also provides online shipping transactions services.  Fedex Freight West was founded in 1966 as Viking Delivery Service, Inc. and changed its name to Viking Freight System, Inc. in 1974 and then to Viking Freight, Inc. in 1996. It further changed its name to Fedex Freight West, Inc. in 2002. The company is based in San Jose, California.  As of February 12, 2001, Fedex Freight West was acquired by FedEx Corporation.

FedEx Corporation currently files its financial statements in reports filed with the U.S. Securities and Exchange Commission, and the following summary financial data regarding FedEx Corporation are taken from such filings:
 
 
Nine
Months Ended
    
 
Year Ended
  
   
February 28, 2010
(Unaudited)
    
May 31,
2009
(Audited)
    
May 31,
2008
(Audited)
    
May 31,
2007
(Audited)
  
Statement of Operations
                        
Revenues
   $ 25,306     $ 35,497     $ 37,953     $ 35,214  
Operating income
     1,302       747       2,075       3,276  
Net income
     765       98       1,125       2,016  
                                 
Condensed Consolidated Balance Sheets
                                
Total assets
     24,876       24,244       25,633       24,000  
Long-term debt
     1,668       1,930       1,506       3,909  
Total common stockholders investment
     14,380       13,626       14,526       12,656  

 
 
 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
AMERICAN REALTY CAPITAL TRUST, INC.
       
       
Date: May 6, 2010
By:
/s/ Nicholas S. Schorsch 
   
Name:
Nicholas S. Schorsch
   
Title:
Chief Executive Officer and
Chairman of the Board of Directors