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American Realty Capital Retail Centers of America June 2011

American Realty Capital Retail Centers of America June 2011. Disclaimer.

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American Realty Capital Retail Centers of America June 2011

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  1. American Realty CapitalRetail Centers of AmericaJune 2011

  2. Disclaimer This webinar is intended to be part of the Broker/Dealer’s review, and is not intended to cover all facets of that which a Broker/Dealer may require. It should be noted that FINRA NTM 05-48 addresses the responsibilities of the individual broker/dealer: suggesting they may not rely exclusively on the efforts of a third party provider. While this webinar is designed to assist the broker/dealer in their due diligence efforts, it is not designed to replace it. In addition, Buttonwood expresses no opinion as to the Program’s, Sponsor’s, Advisor’s, and any affiliates thereof adherence to federal or state laws. Furthermore, the information contained within this webinar is the property of Buttonwood Investment Services LLC and as such may not be reproduced, copied or disseminated in any manner without the express written consent of Buttonwood Investment Services LLC.

  3. Offering Summary For additional detail, please see our complete report, which can be obtained by visiting: www.buttonwoodinvestmentservices.com/reports/

  4. Offering Summary The Company was formed to acquire existing anchored, stabilized core retail properties, including power centers, lifestyle centers, grocery-anchored shopping centers and other need-based shopping centers which are located in the United States and at least 80% leased at the time of acquisition Targeted Investments: • Large Retail – Up to 65.0% • Enclosed Mall Opportunities – Up to 20.0% • Necessity-Based Retail – Up to 20.0% • Real Estate Related Assets – Up to 15.0% For additional detail, please see our complete report, which can be obtained by visiting: www.buttonwoodinvestmentservices.com/reports/

  5. Sources & Uses of Proceeds For additional detail, please see our complete report, which can be obtained by visiting: www.buttonwoodinvestmentservices.com/reports/

  6. Financial Summary For additional detail, please see our complete report, which can be obtained by visiting: www.buttonwoodinvestmentservices.com/reports/

  7. Comments • Management intends to fund distributions from operating cash flow • However, there are no limits on the amount of distributions that may be funded from offering proceeds, borrowed funds, the sale of additional shares, or other sources • Utilizing offering proceeds, borrowings, etc to pay distributions hampers a REIT’s ability to meet stated goals For additional detail, please see our complete report, which can be obtained by visiting: www.buttonwoodinvestmentservices.com/reports/

  8. Comments • ARC typically only invests $200,000 in programs that are targeting $1.5 billion in equity raise. Given this minimal investment amount, ARC’s interests may not be as strongly aligned with investors as they would be with a large equity position alongside investors in the REIT • ARC management attests that their “skin in the game” is at the advisor level and that their ability to continue offering programs hinges on the fair treatment of investors, therefore they are of the opinion that their interests are properly aligned For additional detail, please see our complete report, which can be obtained by visiting: www.buttonwoodinvestmentservices.com/reports/

  9. Comments • Management has stated that they will not sponsor any follow on offerings, and their goal for this REIT is to return investor funds within 3 to 6 years after the close of the offering • The REIT is prohibited from paying an internalization fee. • However, up to 5.0% of outstanding shares (max 7,500,000 shares ) may be issued to directors, officers, employees and consultants • This restricted share program was originally implemented for ARC Trust shortly following the decision to prohibit the payment of an internalization fee by ARCT For additional detail, please see our complete report, which can be obtained by visiting: www.buttonwoodinvestmentservices.com/reports/

  10. Comments • Lincoln Property Company (Service provider to the REIT) is one of the largest diversified real estate services firms in the United States, (currently 4th largest) with approximately $29 billion of real estate assets currently under management • Lincoln has provided the REIT with a Right of First Refusal on all properties until the earlier of 1) investment of all funds, 2) 12 months after the effective date, if the REIT has not raised $50 million, or 3) 5 years after the effective date, if the REIT has raised more than $50 million • Financial information and prior performance information on Lincoln Property was not provided for Buttonwood’s review For additional detail, please see our complete report, which can be obtained by visiting: www.buttonwoodinvestmentservices.com/reports/

  11. Contact Buttonwood Investment Services, LLC 26 W Dry Creek Circle, suite 470 Littleton, CO 80125 (303) 730-3399 www.buttonwoodinvestmentservices.com Analysts: Gail Schneck Steve Ogrin For additional detail, please see our complete report, which can be obtained by visiting: www.buttonwoodinvestmentservices.com/reports/

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