American Realty Capital Trust IV, Inc. has completed its due diligence review and acquired the fee simple interest in an office complex in Indianapolis, IN for $79.1 million. The company closed on the property on May 9, 2013.
The seller of the property was Eli Lilly and Company.
The 400,000 square foot property is fully leased to Rolls-Royce Corporation under a lease that has 9.7 years remaining and expires in December 2022. The lease contains two renewal options of five years each.
The lease is net, meaning the tenant is required to pay substantially all operating expenses in addition to base rent. The annualized straight line rental income for the initial lease term with respect to the acquisition is $6.1 million.
The lease also contains fixed annual rental increases of 2.0%.
American Realty Capital Trust IV funded 100 percent of the acquisition of the property with cash from the sale of its common stock.