American Realty Capital Properties Inc., the largest U.S. owner of single-tenant buildings, isn’t in discussions to buy NorthStar Realty Finance Corp., according to statements from both companies today.
NorthStar jumped 7.3 percent yesterday after media reports that the real estate investment trusts may combine. American Realty had weighed an offer that would value NorthStar at about $6.5 billion, according to people with knowledge of the matter.
While American Realty evaluates opportunities and is in talks with many companies over potential combinations, it is “not currently in discussions with NorthStar,” the New York-based landlord said in a statement.
Nicholas Schorsch’s American Realty has announced multiple purchases of at least $500 million in the past year. Through acquisitions -- including the $9.85 billion takeover of Cole Real Estate Investments Inc. in February -- it has become the biggest U.S. landlord of single-tenant buildings leased to businesses such as drugstores and fast-food restaurants.
Schorsch, with his company AR Capital LLC, is the largest fundraiser in the nontraded REIT business. Nontraded REITs, which mainly attract money from individual investors, have a finite life and eventually have to provide liquidity to shareholders. That can happen through a sale of the company or a stock-exchange listing.
NorthStar, based in New York, said in a separate statement today that it is focused on its business plan and a spinoff of its asset-management business.