American Realty in sale-leaseback deal on over 500 Red Lobsters

|By:, SA News Editor

In conjunction with the sale of Red Lobster to Golden Gate Capital, American  Realty Capital (ARCP) agrees to about a $1.5B sale-leaseback deal on more than 500 Red Lobster restaurants.

The purchase price represents a cash cap rate of 7.9%, with the vast majority of the properties on a 25-year initial term. The leases all provide for annualized 2% rent boosts.

Already ahead of schedule on its plan for $3B in acquisitions this year, this deal for ARCP assures it.