New York City - Net Lease Properties information comes from the Big Apple. American Realty Capital New York Recovery REIT, Inc. has entered into a purchase and sale agreement to buy an Investment Property Portfolio. This portfolio consists of five retail condominiums on Bleecker Street in the Greenwich Village neighborhood of Manhattan. The purchase price for the Investment Property Portfolio is $34 million, exclusive of closing costs. The closing of the acquisition will occur on or before December 1, 2010. The Real Estate Investment Trust "REIT" expects to fund the acquisition of the Investment Property Portfolio with proceeds from its ongoing offering. American Realty Capital New York Recovery REIT, Inc. expects to acquire and operate a portfolio of commercial real estate located in New York City with a focus on institutional quality office and retail net lease properties.
The Net Lease Properties seller consists of Bleecker Street Condo, LLC, 382/384 Bleecker, LLC, 382/384 Perry Retail, LLC and BCS 387, LLC.
The Net Lease Property Portfolio is 100 percent net-leased to fashion tenants, including Marc Jacobs, Michael Kors, Burberry, Mulberry and A.P.C. (Information below on this Tenant).
These Net Lease Properties have the tenant lease details, that described below. Each of the five tenants occupies 100% of the rentable square footage of the particular condominium that it leases.
* The lease to Marc Jacobs has a per annum rent of $426,164 and expires in July 2017. The net-lease has one five-year renewal option at 95% of fair market rent, but in no event less than 90% of last paid rent.
* The lease to Michael Kors has a per annum rent of $525,000 and expires in August 2022. The net-lease has one five-year renewal option at 95% percent of fair market rent.
* The lease to Burberry has a per annum rent of $900,000 and expires in November 2020. The net-lease has two five-year renewal options at the greater of 95% percent of fair market rent or 103% last rent paid.
* The lease to A.P.C. has a per annum rent of $120,000 and expires in June 2020. The net-lease has no renewal option.
* The lease to Mulberry has a per annum rent of $270,122 and expires in May 2016. The net-lease has one five-year renewal option at 95% percent of fair market rent.
Each lease has 3% annual rent escalations. All rents are annualized as of December 2010.
For those of us who did not know of the net-leased tenant, A.P.C., we did some research. In 1988, Tunis native Jean Touitou created a French fashion label called A.P.C. (Atelier de Production et de Creation). Initially, Touitou studied linguistics and history at Sorbonne University in Paris. Today, his label is becoming a prominent name in the ready-to-wear fashion industry as well as a modest wardrobe addition to both celebrities and the average shopper.
Touitou’s label has often been noted as the “French Gap”, but it distinguishes itself apart from the popular chain store as a prestigious clothier of the finest apparel. As time passed, he started selling some of his most popular fashions at stores like New York's Bergdorf Goodman.
We recently had an article on American Realty Capital. This former W.P. Carey CEO Gordon DuGan and US investment head Benjamin Harris have joined with American Realty Capital’s Nicholas Schorsch and William Kahane and formed Corporate Income Properties ARC Inc. Their interests are in Net Lease Properties Sale-Leaseback transactions. American Realty Capital Trust ("ARCT") is ARC's flagship product. It is a Maryland corporation that qualified as a real estate investment trust ("REIT") during the taxable year ended December 31, 2008.
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