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ARCP selling 76 shopping centers for $1.98 billion

NEW YORK (AP) -- Real estate investment trust American Realty Capital Properties Inc. is selling 76 shopping centers to a joint venture of DDR Corp. and Blackstone for about $1.98 billion.

The deal includes the assumption of $461 million in debt and about $800 million of new financings.

The shopping centers are mostly located in Los Angeles, Houston, Denver, Chicago, Atlanta, Washington D.C. and Phoenix. Tenants include Whole Foods, Trader Joe's, The Fresh Market, Costco, Target, Walmart, Kohl's, PetSmart, Dick's Sporting Goods, Bed Bath & Beyond and the TJX Cos.

ARCP President David Kay said Thursday that it will use capital from the sale of its Red Lobster transaction and its strategy of acquiring single tenant commercial properties. ARCP is buying Red Lobster's real estate from Golden Gate Capital for $1.5 billion and then leasing it back.

Blackstone Real Estate Partners VII owns 95 percent of the joint venture's common equity, with a DDR affiliate owning the remaining 5 percent. DDR owns and manages 396 shopping centers in 39 states and Puerto Rico.

The sale is expected to close by late in the third quarter.