UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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):July 12, 2013 (July 8, 2013)
American Realty Capital Trust V, Inc.
(Exact Name of Registrant as Specified in Charter)
| Maryland | | 333-187092 | | 90-0929989 |
(State or other jurisdiction of incorporation or organization) | | (Commission File Number) | | (I.R.S. Employer Identification No.) |
405 Park Avenue
New York, New York 10022
(Address, including zip code, of Principal Executive Offices)
Registrant's telephone number, including area code: (212) 415-6500
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:
£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a Material Definitive Agreement.
Walgreens Pharmacy – Pine Bluff, Arkansas
On July 8, 2013, American Realty Capital Trust V, Inc. (the “Company”) completed its due diligence review of a Walgreens pharmacy located in Pine Bluff, Arkansas and acquired the fee simple interest in the property on that same date. Pursuant to the terms of the purchase and sale agreement dated as of May 31, 2013, the Company’s obligation to close upon the acquisition was subject to the satisfactory completion of a due diligence review of the property, among other conditions. The purchase and sale agreement contains customary representations and warranties by the seller.
The description of the Walgreens pharmacy set forth in Item 2.01 of this Current Report on Form 8-K is incorporated by reference into this Item 1.01 in its entirety.
Item 2.01. Completion of Acquisition or Disposition of Assets.
On July 8, 2013, the Company closed its acquisition of the fee simple interest in a Walgreens pharmacy located in Pine Bluff, Arkansas for a contract purchase price of $3.6 million, exclusive of closing costs. The Company acquired the property through a wholly owned subsidiary of its operating partnership. The seller has no material relationship with the Company and the acquisition was not an affiliated transaction.
The Company funded 100% of the acquisition with cash from its ongoing initial public offering.
The property is 100% leased to a subsidiary of Walgreen Co. (NYSE: WAG), which guarantees the lease and carries an investment grade credit rating as determined by major credit rating agencies. The lease is net whereby the tenant is required to pay substantially all operating expenses, including all costs to maintain and repair the roof and structure of the building, in addition to base rent.
The following table provides information about the property relating to the seller, lease commencement and termination dates, rentable square feet, annualized rental income, rental escalations and renewal options.
| Seller | Lease
Commencement Date | Lease
Termination Date | Rentable
Square
Feet | Annualized
Rental
Income | Rental Escalations | Renewal
Options |
| STAMJA-DT AR Properties, LLC | July 2013 | September 2037 | 10,500 | $0.2 million | None | Lease term is 75 years; however, the tenant has the option to terminate the lease after 300 months (25 years) |
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 V, INC. |
| | | |
| Date: July 12, 2013 | By: | /s/ Nicholas S. Schorsch |
| | Nicholas S. Schorsch Chief Executive Officer and Chairman of the Board of Directors |
