American Realty Capital Healthcare Trust III Invests in Georgia Healthcare Property

American Realty Capital Healthcare Trust III Inc., a publicly registered non-traded real estate investment trust sponsored by AR Capital, acquired the fee simple interest in the Decatur Medical Office Building and a leasehold interest in an adjacent parking lot for an aggregate purchase price of $5.1 million, exclusive of closing costs.

The Decatur Medical Office Building, located in the Atlanta suburb of Decatur, Georgia, contains 20,800 rentable square feet and is 100 percent leased to Georgia Cancer Specialists I P.C. The lease is net, where the tenant is required to pay operating expenses, excluding real estate taxes and all costs to maintain and repair the roof and structure of the building, in addition to base rent. The lease has an amended 29-year term that commenced in October 1993 and expires in November 2022, and contains annual rental escalations equal to 2.0 percent. Annualized cash rental income is expected to be $0.6 million.

American Realty Capital Healthcare Trust III funded the acquisition with proceeds from its ongoing initial public offering of common stock. At closing, the REIT paid an acquisition fee of $0.1 million to their advisor, American Realty Capital Healthcare III Advisors LLC.

American Realty Capital Healthcare Trust III, Inc. is a publicly registered, non-traded REIT which seeks to acquire a diversified portfolio of real estate properties, focusing primarily on healthcare-related assets, including medical office buildings, seniors housing and other healthcare-related facilities.