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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, DC 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<B>FORM 8-K</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Date of Report (Date of earliest event
reported) May 7, 2012 (May 3, 2012)</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AMERICAN REALTY CAPITAL PROPERTIES, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 8.5pt; text-align: center">(Exact name of Registrant as specified
in its charter)</P>

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    <TD STYLE="width: 34%; padding-right: -0.6pt; font-size: 10pt; font-weight: bold; text-align: center"><B>Maryland</B></TD>
    <TD STYLE="width: 33%; padding-right: -0.6pt; font-size: 10pt; font-weight: bold; text-align: center">001-35263</TD>
    <TD STYLE="width: 33%; padding-right: -0.6pt; font-size: 10pt; font-weight: bold; text-align: center"><B>45-2482685</B></TD></TR>
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    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 3.2pt 0pt 0; text-align: center">(State or other jurisdiction of</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 3.2pt 0pt 0; text-align: center">incorporation or organization)</P></TD>
    <TD STYLE="padding-right: -0.6pt; font-size: 10pt; text-align: center">(Commission File Number)</TD>
    <TD STYLE="padding-right: -0.6pt; font-size: 10pt; text-align: center">(I.R.S. Employer Identification No.)</TD></TR>
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    <TD STYLE="width: 100%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 3.2pt 0pt 0; text-align: center"><B>405 Park Avenue</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 3.2pt 0pt 0; text-align: center"><B>New York, New York 10022</B></P></TD></TR>
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    <TD STYLE="padding-right: -0.6pt; font-size: 10pt; text-align: center">(Address, including zip code, of principal executive offices)</TD></TR>
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    <TD STYLE="padding-right: 0.8pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt; font-size: 10pt; font-weight: bold; text-align: center"><B>(212) 415-6500</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: -0.6pt; font-size: 10pt; text-align: center">Registrant&rsquo;s telephone number, including area code:&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

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&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">o</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01.&nbsp;Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Portfolio Summary</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This Current Report on Form 8-K provides disclosure relating
to several material definitive agreements entered into, or anticipated to be entered into, by American Realty Capital Properties,
Inc. (&ldquo;ARCP&rdquo; or the &ldquo;Company&rdquo;). As described in further detail below, the Company has entered into a purchase
and sale agreement to acquire the fee simple interests in six built-to-suit FedEx Freight distribution facilities located in five
states for an aggregate purchase price of approximately $12.2 million, exclusive of closing costs. In addition, as previously announced
in its Current Report on Form 8-K dated March 19, 2012, the Company executed a purchase and sale agreement to acquire a fee simple
interest in a John Deere distribution facility located in Davenport, Iowa for a purchase price of approximately $26.1 million,
exclusive of closing costs. The Company anticipates that the aggregate contract purchase price of these acquisitions, $38.3 million
excluding closing costs, will be funded from gross proceeds of approximately $6.0 million from the issuance of Preferred Shares
(as described in further detail below) as well as approximately $6.4 million from the issuance of OP Units (as described in further
detail below) of the Company&rsquo;s operating partnership. In addition, a portion of the aggregate purchase price of these acquisitions
will be funded from proceeds from the Company&rsquo;s senior secured revolving credit facility and available cash on-hand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">After the closing of the transactions set forth herein, the
Company will own 97 free-standing, single tenant commercial properties acquired for a purchase price of $183.8 million, containing
1.7 million square feet. The properties are net leased to nine credit tenants operating in eight industry sectors located in 16
states. Although the Company believes that the closing of the acquisitions of the FedEx Freight properties is probable, there can
be no assurance that the transactions will be consummated. The following table summarizes the portfolio highlights assuming the
acquisition of the John Deere distribution facility and six FedEx Freight distribution facilities (dollar amounts in thousands):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-left: 0">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Annualized Rental Income/ NOI (3)</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; padding-left: 0">Tenant</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Investment Grade Credit Rating (1)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Properties</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Square Feet</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Base Purchase Price (2)</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">% of Total Portfolio</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 17%; font-size: 10pt; text-align: left; padding-left: 0">Citizens Bank</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 11%; font-size: 10pt; text-align: center; padding-left: 10pt">Yes</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 11%; font-size: 10pt; text-align: center; padding-left: 5.4pt">59</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">291,920</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">95,241</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">6,729</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">45.3</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0">John Deere</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 10pt">Yes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 5.4pt">1</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">552,960</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">26,126</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,299</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15.5</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0">Home Depot</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 10pt">Yes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 5.4pt">1</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">465,600</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">23,398</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,258</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15.2</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 0">FedEx</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 10pt">Yes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 5.4pt">6</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">92,935</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12,152</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,094</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0">Dollar General</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 10pt">Yes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 5.4pt">20</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">177,668</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">9,981</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">965</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6.5</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 0">Walgreens</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 10pt">Yes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 5.4pt">2</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">29,534</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,204</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">591</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4.0</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0">Advance Auto Parts</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 10pt">Yes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 5.4pt">6</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">42,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,122</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">457</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3.1</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 0">GSA - SSA</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 10pt">Yes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 5.4pt">1</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12,009</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,850</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">421</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.8</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; padding-left: 0">Community Bank</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1pt; padding-left: 10pt">Yes</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt; border-bottom: Black 1pt solid">1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">4,410</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">705</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">36</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">0.2</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; padding-left: 0">&nbsp;Total Portfolio (4)</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 2.5pt; padding-left: 5.4pt; border-bottom: Black 2.5pt double">97</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,669,036</TD><TD STYLE="padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">183,779</TD><TD STYLE="padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">14,850</TD><TD STYLE="padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><B>100</B></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><B>%</B></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 3pt; text-indent: 0">___________________</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD>100% of the tenants within the portfolio have an investment grade credit rating as defined by a major credit rating agency.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(2)</TD><TD>Original purchase price of the properties contributed in September 2011 in connection with the Company&rsquo;s initial public
offering and contract purchase price for all other properties, excluding acquisition and related transaction costs.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(3)</TD><TD>Annualized rental income/ net operating income for net leases is rental income on a straight-line basis. For modified gross
lease properties, as applicable, amount is rental income on a straight-line basis plus operating expense reimbursement revenue
less property operating expenses.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(4)</TD><TD>Excludes two vacant properties which are classified as held-for-sale.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Private Placement of Preferred Stock </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On May 3, 2012, the Company&rsquo;s board of directors approved
the Company&rsquo;s entry into a securities purchase agreement (the &ldquo;Securities Purchase Agreement&rdquo;) with an unaffiliated
third party that is an &ldquo;accredited investor,&rdquo; as that term is defined in Regulation D as promulgated under the Securities
Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) (the &ldquo;Purchaser&rdquo;), pursuant to which the Company will agree
to sell to the Purchaser, and the Purchaser will agree to purchase from the Company, shares of a new series of the Company&rsquo;s
convertible preferred stock designated Series A Convertible Preferred Stock (the &ldquo;Preferred Shares&rdquo;), for an aggregate
purchase price of $6.0 million. After deducting for fees and expenses, the aggregate net proceeds from the sale of the Preferred
Shares is expected to be approximately $5.8 million. The offering is expected to close on or about May 10, 2012, subject to satisfaction
of certain customary closing conditions. Although the Company believes that the transaction is probable, there can be no assurance
that the transaction will be consummated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the Articles Supplementary to create the Preferred
Shares (the &ldquo;Articles Supplementary&rdquo;), at the option of the Purchaser, the Preferred Shares may be converted into shares
of the Company&rsquo;s common stock at a conversion price equal to the market value of the common stock, subject to the terms set
forth in the Articles Supplementary, beginning one year after the date of issuance. In addition, the holders of the Preferred Shares
will be entitled to receive dividends when, as and if authorized and declared by the Company&rsquo;s board of directors out of
funds legally available for that purpose, at the rate per annum equal to seven percent (7%) payable monthly. The Preferred Shares
will be redeemable by the Company at any time. The Company, at its option, may redeem the Preferred Shares, in whole or in part,
at $11 per share, subject to the provisions described in the Articles Supplementary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Preferred Shares will rank senior to any and all other classes
or series of the Company&rsquo;s capital stock. The Preferred Shares will not be transferable without the prior consent of the
Company. The Preferred Shares have full ratchet anti-dilution protection and are subject to other adjustments, as further described
in the Articles Supplementary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The foregoing descriptions of the Securities Purchase Agreement
and the Articles Supplementary do not purport to be complete and are qualified in their entirety by reference to the full text
of each document, each of which will be filed with the U.S. Securities and Exchange Commission (the &ldquo;SEC&rdquo;) upon closing
of the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Issuance of OP Units</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On May 4, 2012, the Company&rsquo;s operating partnership, ARC
Properties Operating Partnership, L.P. (the &ldquo;Operating Partnership&rdquo;) entered into a purchase and sale agreement with
Setzer Properties, LLC (the &ldquo;Seller&rdquo;), pursuant to which the Company will issue approximately 580,000 operating partnership
units (the &ldquo;OP Units&rdquo;) as partial consideration for the acquisition of the fee simple interest in the six built-to-suit
FedEx Freight distribution facilities described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As a result, the Seller will be admitted as a limited partner
of the Operating Partnership. Pursuant to the partnership agreement, the Seller will receive redemption rights as a limited partner,
which will enable the Seller to cause the Operating Partnership to redeem its OP Units in exchange for cash or, at the option of
the Operating Partnership, shares of the Company&rsquo;s common stock on a one-for-one basis. The cash redemption amount per OP
Unit will be based on the market price of the Company&rsquo;s common stock at the time of redemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The foregoing descriptions of the purchase and sale agreement
and the partnership agreement do not purport to be complete and are qualified in their entirety by reference to the full text of
each document. A copy of the purchase and sale agreement will be filed with the SEC upon closing of the transaction. A copy of
the partnership agreement was previously filed as Exhibit 4.1 to the Company&rsquo;s Registration Statement on Form S-11 filed
on July 5, 2011 and is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>FedEx Freight</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On May 3, 2012, the Company&rsquo;s board of directors ratified
the Company&rsquo;s entry, through the Operating Partnership, into a purchase and sale agreement with the Seller to acquire a fee
simple interest in six built-to-suit FedEx Freight distribution facilities located in the cities and states listed below. The Seller
does not have a material relationship with the Company and the acquisition is not an affiliated transaction. Although the Company
believes that the acquisition of the properties is probable, there can be no assurance that the acquisition will be consummated.
The purchase and sale agreement contains customary representations and warranties by the seller.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The tenant of each of the properties is FedEx Freight, Inc.,
which is a wholly-owned subsidiary FedEx Corp. (NYSE: FDX). All the leases are guaranteed by FedEx Corp., which has an investment
grade credit rating as determined by major credit rating agencies. The properties total 92,935 rentable square feet. The leases
have terms between seven to 15 years, with a weighted average remaining term of approximately 4.6 years. None of the leases contain
fixed rental escalations. The leases are net whereby the tenant is required to pay substantially all operating expenses, in addition
to base rent. The aggregate annualized rental income for the properties will be approximately $1.1 million, or approximately $11.82
per rentable square foot.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table provides, for each of the properties, information
relating to lease commencement and termination dates, amount of lease term remaining, rentable square footage and approximate annualized
rental income and renewal options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 11%; border-bottom: black 1pt solid; font-weight: bold; text-align: center">Location</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 22%; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Lease</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Commencement</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Date</B></P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Lease</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Termination</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Date</B></P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Lease Term</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Remaining</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Years)</B></P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 13%; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Rentable Square</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Footage</B></P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 13%; border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Approximate</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Annualized</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Rental Income</B></P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 13%; border-bottom: black 1pt solid; font-weight: bold; text-align: center">Renewal Options</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>Mt. Vernon, IL</TD>
    <TD>&nbsp;</TD>
    <TD>October 2009</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">April 2017</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">5.0</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">15,700</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">$144,000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;Two, five year options with 5% increases</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>Evansville, IN</TD>
    <TD>&nbsp;</TD>
    <TD>October 2009</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">January 2017</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">4.8</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">20,200</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">$339,049</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;Two, five year options with 5% increases</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>Mt. Pleasant, PA</TD>
    <TD>&nbsp;</TD>
    <TD>October 2009</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">October 2016</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">4.5</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">20,200</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">$219,000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;Two, five year options with 5% increases</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>Chillicothe, OH</TD>
    <TD>&nbsp;</TD>
    <TD>January 2009</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">December 2015</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">3.7</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">12,555</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">$138,000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;Two, five year options with 5% increases</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD>London, KY</TD>
    <TD>&nbsp;</TD>
    <TD>January 2009</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">June 2015</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">3.2</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">12,140</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">$122,400</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;Two, five year options with 5% increases</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>Kankakee, IL</TD>
    <TD>&nbsp;</TD>
    <TD>January 2003</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">October 2018</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">6.5</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">12,140</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">$136,200</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Two, five year options with 10% increases</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The aggregate purchase price of the properties is approximately
$12.2 million, exclusive of closing costs. The Company intends to fund the purchase price with (a) borrowings from its existing
$150 million senior secured revolving credit facility with RBS Citizens, N.A. in the amount of approximately $5.6 million and (b)
the issuance of approximately 580,000 OP Units to the Seller, as described above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 3.02. Unregistered Sales of Equity Securities </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The information set forth in Item 1.01 of this Current Report
on Form 8-K is hereby incorporated by reference into this Item 3.02 in its entirety. The Preferred Shares are being offered and
sold pursuant to an exemption from the registration requirements under Section 4(2) of the Securities Act and Rule 506 of Regulation
D promulgated thereunder. The shares of common stock to be issued upon conversion of the Preferred Shares have not been registered
under the Securities Act and may not be offered or sold in the United States in the absence of an effective registration statement
or exemption from the registration requirements. This Current Report on Form 8-K shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would
be unlawful prior to the registration or qualification under the securities laws of any such state.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Preferred Shares and OP Units are being issued without registration
in reliance on the exemption in Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D thereunder, in reliance
upon the exemption from registration provided by Section 4(2) thereof for transactions not involving a public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 3.03. Material Modification to Rights of Security Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The disclosure provided above in Item 1.01 is incorporated by
reference into this Item 3.03.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company will file the Articles Supplementary with the Secretary
of State of the State of Maryland, to be filed with the SEC upon closing of the Preferred Share transaction. The Articles Supplementary
will create and specify the rights of the Preferred Shares, including the terms and conditions on which shares of such Preferred
Shares shall convert into shares of common stock of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: -1.6pt">AMERICAN REALTY CAPITAL PROPERTIES, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 52%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 6%; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="width: 42%; padding-right: 0.8pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: -0.6pt">May 7, 2012</TD>
    <TD STYLE="padding-right: -0.6pt">By:</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; padding-right: -0.6pt">/s/ Nicholas S. Schorsch</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: -0.6pt">Name:</TD>
    <TD STYLE="padding-right: -0.6pt">Nicholas S. Schorsch</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: -0.6pt">Title:</TD>
    <TD STYLE="padding-right: -0.6pt">Chief Executive Officer and</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="padding-right: -0.6pt">Chairman of the Board of Directors</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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[{"type": "8-K", "sequence": "1", "filename": "v312141_8-k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 52944}]
{"company-data": {"conformed-name": "American Realty Capital Properties, Inc.", "cik": "0001507385", "assigned-sic": "6798", "irs-number": "000000000", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-35263", "film-number": "12815787"}, "business-address": {"street1": "405 PARK AVENUE", "city": "NEW YORK", "state": "NY", "zip": "10022", "phone": "212-415-6500"}, "mail-address": {"street1": "405 PARK AVENUE", "city": "NEW YORK", "state": "NY", "zip": "10022"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event
reported) May 7, 2012 (May 3, 2012)
AMERICAN REALTY CAPITAL PROPERTIES, INC.
(Exact name of Registrant as specified
in its charter)
Maryland
001-35263
45-2482685
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
405 Park Avenue
New York, New York 10022
(Address, including zip code, of principal executive offices)
(212) 415-6500
Registrant's telephone number, including area code:
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a Material Definitive Agreement.
Portfolio Summary
This Current Report on Form 8-K provides disclosure relating
to several material definitive agreements entered into, or anticipated to be entered into, by American Realty Capital Properties,
Inc. ("ARCP" or the "Company"). As described in further detail below, the Company has entered into a purchase
and sale agreement to acquire the fee simple interests in six built-to-suit FedEx Freight distribution facilities located in five
states for an aggregate purchase price of approximately $12.2 million, exclusive of closing costs. In addition, as previously announced
in its Current Report on Form 8-K dated March 19, 2012, the Company executed a purchase and sale agreement to acquire a fee simple
interest in a John Deere distribution facility located in Davenport, Iowa for a purchase price of approximately $26.1 million,
exclusive of closing costs. The Company anticipates that the aggregate contract purchase price of these acquisitions, $38.3 million
excluding closing costs, will be funded from gross proceeds of approximately $6.0 million from the issuance of Preferred Shares
(as described in further detail below) as well as approximately $6.4 million from the issuance of OP Units (as described in further
detail below) of the Company's operating partnership. In addition, a portion of the aggregate purchase price of these acquisitions
will be funded from proceeds from the Company's senior secured revolving credit facility and available cash on-hand.
After the closing of the transactions set forth herein, the
Company will own 97 free-standing, single tenant commercial properties acquired for a purchase price of $183.8 million, containing
1.7 million square feet. The properties are net leased to nine credit tenants operating in eight industry sectors located in 16
states. Although the Company believes that the closing of the acquisitions of the FedEx Freight properties is probable, there can
be no assurance that the transactions will be consummated. The following table summarizes the portfolio highlights assuming the
acquisition of the John Deere distribution facility and six FedEx Freight distribution facilities (dollar amounts in thousands):
Annualized Rental Income/ NOI (3)
Tenant
Investment Grade Credit Rating (1)
Properties
Square Feet
Base Purchase Price (2)
Amount
% of Total Portfolio
Citizens Bank
Yes
59
291,920
$
95,241
$
6,729
45.3
%
John Deere
Yes
1
552,960
26,126
2,299
15.5
%
Home Depot
Yes
1
465,600
23,398
2,258
15.2
%
FedEx
Yes
6
92,935
12,152
1,094
7.4
%
Dollar General
Yes
20
177,668
9,981
965
6.5
%
Walgreens
Yes
2
29,534
6,204
591
4.0
%
Advance Auto Parts
Yes
6
42,000
5,122
457
3.1
%
GSA - SSA
Yes
1
12,009
4,850
421
2.8
%
Community Bank
Yes
1
4,410
705
36
0.2
%
Total Portfolio (4)
97
1,669,036
$
183,779
$
14,850
100
%
___________________
(1)
100% of the tenants within the portfolio have an investment grade credit rating as defined by a major credit rating agency.
(2)
Original purchase price of the properties contributed in September 2011 in connection with the Company's initial public
offering and contract purchase price for all other properties, excluding acquisition and related transaction costs.
(3)
Annualized rental income/ net operating income for net leases is rental income on a straight-line basis. For modified gross
lease properties, as applicable, amount is rental income on a straight-line basis plus operating expense reimbursement revenue
less property operating expenses.
(4)
Excludes two vacant properties which are classified as held-for-sale.
Private Placement of Preferred Stock
On May 3, 2012, the Company's board of directors approved
the Company's entry into a securities purchase agreement (the "Securities Purchase Agreement") with an unaffiliated
third party that is an "accredited investor," as that term is defined in Regulation D as promulgated under the Securities
Act of 1933, as amended (the "Securities Act") (the "Purchaser"), pursuant to which the Company will agree
to sell to the Purchaser, and the Purchaser will agree to purchase from the Company, shares of a new series of the Company's
convertible preferred stock designated Series A Convertible Preferred Stock (the "Preferred Shares"), for an aggregate
purchase price of $6.0 million. After deducting for fees and expenses, the aggregate net proceeds from the sale of the Preferred
Shares is expected to be approximately $5.8 million. The offering is expected to close on or about May 10, 2012, subject to satisfaction
of certain customary closing conditions. Although the Company believes that the transaction is probable, there can be no assurance
that the transaction will be consummated.
Pursuant to the Articles Supplementary to create the Preferred
Shares (the "Articles Supplementary"), at the option of the Purchaser, the Preferred Shares may be converted into shares
of the Company's common stock at a conversion price equal to the market value of the common stock, subject to the terms set
forth in the Articles Supplementary, beginning one year after the date of issuance. In addition, the holders of the Preferred Shares
will be entitled to receive dividends when, as and if authorized and declared by the Company's board of directors out of
funds legally available for that purpose, at the rate per annum equal to seven percent (7%) payable monthly. The Preferred Shares
will be redeemable by the Company at any time. The Company, at its option, may redeem the Preferred Shares, in whole or in part,
at $11 per share, subject to the provisions described in the Articles Supplementary.
The Preferred Shares will rank senior to any and all other classes
or series of the Company's capital stock. The Preferred Shares will not be transferable without the prior consent of the
Company. The Preferred Shares have full ratchet anti-dilution protection and are subject to other adjustments, as further described
in the Articles Supplementary.
The foregoing descriptions of the Securities Purchase Agreement
and the Articles Supplementary do not purport to be complete and are qualified in their entirety by reference to the full text
of each document, each of which will be filed with the U.S. Securities and Exchange Commission (the "SEC") upon closing
of the transaction.
Issuance of OP Units
On May 4, 2012, the Company's operating partnership, ARC
Properties Operating Partnership, L.P. (the "Operating Partnership") entered into a purchase and sale agreement with
Setzer Properties, LLC (the "Seller"), pursuant to which the Company will issue approximately 580,000 operating partnership
units (the "OP Units") as partial consideration for the acquisition of the fee simple interest in the six built-to-suit
FedEx Freight distribution facilities described below.
As a result, the Seller will be admitted as a limited partner
of the Operating Partnership. Pursuant to the partnership agreement, the Seller will receive redemption rights as a limited partner,
which will enable the Seller to cause the Operating Partnership to redeem its OP Units in exchange for cash or, at the option of
the Operating Partnership, shares of the Company's common stock on a one-for-one basis. The cash redemption amount per OP
Unit will be based on the market price of the Company's common stock at the time of redemption.
The foregoing descriptions of the purchase and sale agreement
and the partnership agreement do not purport to be complete and are qualified in their entirety by reference to the full text of
each document. A copy of the purchase and sale agreement will be filed with the SEC upon closing of the transaction. A copy of
the partnership agreement was previously filed as Exhibit 4.1 to the Company's Registration Statement on Form S-11 filed
on July 5, 2011 and is incorporated herein by reference.
FedEx Freight
On May 3, 2012, the Company's board of directors ratified
the Company's entry, through the Operating Partnership, into a purchase and sale agreement with the Seller to acquire a fee
simple interest in six built-to-suit FedEx Freight distribution facilities located in the cities and states listed below. The Seller
does not have a material relationship with the Company and the acquisition is not an affiliated transaction. Although the Company
believes that the acquisition of the properties is probable, there can be no assurance that the acquisition will be consummated.
The purchase and sale agreement contains customary representations and warranties by the seller.
The tenant of each of the properties is FedEx Freight, Inc.,
which is a wholly-owned subsidiary FedEx Corp. (NYSE: FDX). All the leases are guaranteed by FedEx Corp., which has an investment
grade credit rating as determined by major credit rating agencies. The properties total 92,935 rentable square feet. The leases
have terms between seven to 15 years, with a weighted average remaining term of approximately 4.6 years. None of the leases contain
fixed rental escalations. The leases are net whereby the tenant is required to pay substantially all operating expenses, in addition
to base rent. The aggregate annualized rental income for the properties will be approximately $1.1 million, or approximately $11.82
per rentable square foot.
The following table provides, for each of the properties, information
relating to lease commencement and termination dates, amount of lease term remaining, rentable square footage and approximate annualized
rental income and renewal options.
Location
Lease
Commencement
Date
Lease
Termination
Date
Lease Term
Remaining
(Years)
Rentable Square
Footage
Approximate
Annualized
Rental Income
Renewal Options
Mt. Vernon, IL
October 2009
April 2017
5.0
15,700
$144,000
Two, five year options with 5% increases
Evansville, IN
October 2009
January 2017
4.8
20,200
$339,049
Two, five year options with 5% increases
Mt. Pleasant, PA
October 2009
October 2016
4.5
20,200
$219,000
Two, five year options with 5% increases
Chillicothe, OH
January 2009
December 2015
3.7
12,555
$138,000
Two, five year options with 5% increases
London, KY
January 2009
June 2015
3.2
12,140
$122,400
Two, five year options with 5% increases
Kankakee, IL
January 2003
October 2018
6.5
12,140
$136,200
Two, five year options with 10% increases
The aggregate purchase price of the properties is approximately
$12.2 million, exclusive of closing costs. The Company intends to fund the purchase price with (a) borrowings from its existing
$150 million senior secured revolving credit facility with RBS Citizens, N.A. in the amount of approximately $5.6 million and (b)
the issuance of approximately 580,000 OP Units to the Seller, as described above.
Item 3.02. Unregistered Sales of Equity Securities
The information set forth in Item 1.01 of this Current Report
on Form 8-K is hereby incorporated by reference into this Item 3.02 in its entirety. The Preferred Shares are being offered and
sold pursuant to an exemption from the registration requirements under Section 4(2) of the Securities Act and Rule 506 of Regulation
D promulgated thereunder. The shares of common stock to be issued upon conversion of the Preferred Shares have not been registered
under the Securities Act and may not be offered or sold in the United States in the absence of an effective registration statement
or exemption from the registration requirements. This Current Report on Form 8-K shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would
be unlawful prior to the registration or qualification under the securities laws of any such state.
The Preferred Shares and OP Units are being issued without registration
in reliance on the exemption in Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D thereunder, in reliance
upon the exemption from registration provided by Section 4(2) thereof for transactions not involving a public offering.
Item 3.03. Material Modification to Rights of Security Holders
The disclosure provided above in Item 1.01 is incorporated by
reference into this Item 3.03.
The Company will file the Articles Supplementary with the Secretary
of State of the State of Maryland, to be filed with the SEC upon closing of the Preferred Share transaction. The Articles Supplementary
will create and specify the rights of the Preferred Shares, including the terms and conditions on which shares of such Preferred
Shares shall convert into shares of common stock of the Company.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AMERICAN REALTY CAPITAL PROPERTIES, INC.
May 7, 2012
By:
/s/ Nicholas S. Schorsch
Name:
Nicholas S. Schorsch
Title:
Chief Executive Officer and
Chairman of the Board of Directors