American Realty Pays $10M for French's HQ in Morris County
Putting a $10 million deal to bed, American Realty Capital Properties Inc. is now the owner of the 32,000-square-foot French's Mustard headquarters in Chester, NJ.
The going-in cap rate is 9.64 percent. The seller is Prospect Square LLC.
French's parent, Reckitt Benckiser Group plc, has 5.7 years remaining on a 10-year net lease at 4 Mill Ridge Lane, with an 8.7 percent escalation coming in year eight. The lease has one five-year renewal option, according to an SEC filing. The tenant pays about $1 million per year or $30.13 per square foot.
ARCP secured a $5.5 million loan to make the close, tapping its revolving credit facility for the balance of the acquisition cost.
"This purchase will further enhance our portfolio's tenant mix and geographic diversification," emphasized Nicholas S. Schorsch, chairman and CEO of ARCP.