American Realty Capital Global Trust, Inc. Soars to New Heights

American Realty Capital Global Trust, Inc. (ARC Global) swooped in and took flight with a GE aviation office and warehouse facility. The facility, leased to GE Aviation Systems, LLC is located in Grand Rapids, Michigan. The acquisition comes following the completion of the company’s due diligence review on the property.

The property contains 369,000 rentable square feet and was purchased for $38.9 million, exclusive of closing costs. ARC Global paid using $20.4 million in cash, which was gathered from the company’s initial public offering and a drawdown of $18.5 million on its unsecured revolving credit facility from JPMorgan Chase Bank, N.A.

The facility is 100% leased to GE Aviation Systems, which provides commercial and military jet engines and components as well as avionics, electric power, and mechanical systems for aircraft. It is a subsidiary of General Electric Company, which carries an investment grade credit rating. The original lease on the property is approximately 12 years and terminates in December 2025. The property’s annualized straight line rental income is $2.8 million.

ARC Global is a non-traded REIT that aims to purchase commercial, single-tenant properties sourced from sale-leaseback transactions. The offering size is $1.5 billion and the REIT’s portfolio consists of multiple properties in the U.S. and the United Kingdom.