New York -- American Realty Capital – Retail Centers of America, Inc. ("ARC Retail") closed its acquisition of the Tiffany Springs MarketCenter, located in Kansas City, Mo., on Sept. 26, for a contract price of $53.5 million, exclusive of closing costs. The purchase of the Tiffany Springs MarketCenter represents ARC Retail's third acquisition of a retail power center with multiple credit tenants.
ARC Retail's portfolio now exceeds $107 million in purchased assets. The Tiffany Springs MarketCenter contains approximately 240,000 rentable sq. ft. and is 88% leased to 29 tenants. Three tenants, Best Buy, The Sports Authority and PetSmart, represent 48% of the annualized rental income of the property and are rated by major credit rating agencies.
The lease to Best Buy contains approximately 46,000 rentable sq. ft. and has a 10-year lease term, which expires in January 2019. The lease to The Sports Authority contains approximately 42,000 rentable sq. ft. and has a 10-year lease term, which expires in January 2019. The lease to PetSmart contains approximately 25,000 rentable sq. ft. and has a 10-year lease term, which expires in July 2018.
"ARC Retail's acquisition of Tiffany Springs MarketCenter, our third property, remains consistent with our sector specific investment focus of buying attractive power centers and lifestyle properties in the U.S.,” said Nicholas S. Schorsch, ARC Retail's chairman and CEO. “We continue to accelerate the momentum from previous acquisitions, always looking for opportunities to buy well-positioned centers, in growth markets with a strong tenant base. We continue to take advantage of attractive big-box investment opportunities while increasing our geographic and tenant diversity."