Cole Capital, the private capital management business of American Realty Capital Properties (ARCP), announced results for some of its sponsored, non-traded REITs for the third quarter of 2014.
“We are delighted to report that the Cole Capital REITs have once again executed on their business strategy. During the third quarter, each of the Cole Capital REITs continued to build and diversify its portfolio and successfully executed on additional financings,” commented Simon Misselbrook, Chief Financial Officer and Treasurer of Managed REITs for Cole Capital.
Several of the company’s non-traded REITs made acquisitions in the third quarter.
Cole Credit Property Trust V (CCPT V) is still open to new investors and focuses on retail properties. During the third quarter, the non-traded REIT acquired 40 properties in 15 states for a total approximate purchase price of $163.7 million. At the end of the quarter, the company’s portfolio consisted of 47 properties. Between September 30, 2014 and November 10, 2014, CCPT V acquired an additional eight properties for approximately $80.2 million.
Another current offering, Cole Office & Industrial REIT (CCIT II) acquired seven properties during the third quarter for a total of about $91 million, bringing its total properties to 17 at the end of the third quarter. Subsequent to the close of the third quarter, CCIT II acquired three additional properties for a purchase price of approximately $204.9 million.
Cole Real Estate Income Strategy (Daily NAV), a continuously offered non-traded REIT that provides daily valuations, acquired 18 properties across the country in the third quarter for approximately $72 million. By the end of the quarter, the REIT had 71 assets across 26 states and acquired another four properties for around $5 million after the quarter ended.
With a focus on retail commercial real estate, Cole Credit Property Trust IV (CCPT IV) added 162 properties to its robust portfolio for a purchase price of approximately $724.4 million. CCPT IV closed in February 2014 and at the end of the third quarter had 671 properties. After September 30, 2014, CCPT IV acquired another 33 properties for an approximate total purchase price of $170 million.
During the third quarter, Cole Corporate Income Trust (CCIT) entered into a definitive agreement to merge with Select Income REIT. The agreement creates a full liquidity option for CCIT stockholders. CCIT, which invests in “Necessity Corporate” properties, acquired two properties in the third quarter for a total approximate purchase price of $60.8 million, bringing the company’s total to 87 properties.
Cole Capital has been the subject of a dispute between ARCP and RCS Capital Corporation (RCAP), in which RCAP canceled an agreement to acquire Cole. The news came after ARCP admitted to accounting errors. A recent analyst report by Oppenheimer valued Cole Capital at $368 million, in stark contrast to the $700 million RCAP was prepared to pay before backing out.