-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001144204-09-054297.txt : 20091023
<SEC-HEADER>0001144204-09-054297.hdr.sgml : 20091023
<ACCEPTANCE-DATETIME>20091023103135
ACCESSION NUMBER:		0001144204-09-054297
CONFORMED SUBMISSION TYPE:	D
PUBLIC DOCUMENT COUNT:		1
ITEM INFORMATION:		Rule 506
FILED AS OF DATE:		20091023
DATE AS OF CHANGE:		20091023
EFFECTIVENESS DATE:		20091023

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ARC INCOME PROPERTIES III LLC
		CENTRAL INDEX KEY:			0001475098
		IRS NUMBER:				270919368
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1209

	FILING VALUES:
		FORM TYPE:		D
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	021-135546
		FILM NUMBER:		091133719

	BUSINESS ADDRESS:	
		STREET 1:		405 PARK AVENUE
		STREET 2:		15TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212 415 6500

	MAIL ADDRESS:	
		STREET 1:		405 PARK AVENUE
		STREET 2:		15TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
</SEC-HEADER>
<DOCUMENT>
<TYPE>D
<SEQUENCE>1
<FILENAME>primary_doc.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<edgarSubmission>

    <schemaVersion>X0603</schemaVersion>

    <submissionType>D</submissionType>

    <testOrLive>LIVE</testOrLive>

    <primaryIssuer>
        <cik>0001475098</cik>
        <entityName>ARC INCOME PROPERTIES III LLC</entityName>
        <issuerAddress>
            <street1>405 PARK AVENUE</street1>
            <street2>15TH FLOOR</street2>
            <city>NEW YORK</city>
            <stateOrCountry>NY</stateOrCountry>
            <zipCode>10022</zipCode>
        </issuerAddress>
        <issuerPhoneNumber>212 415 6500</issuerPhoneNumber>
        <jurisdictionOfInc>DELAWARE</jurisdictionOfInc>
        <issuerPreviousNameList>
            <value>None</value>
        </issuerPreviousNameList>
        <edgarPreviousNameList>
            <value>None</value>
        </edgarPreviousNameList>
        <entityType>Limited Liability Company</entityType>
        <yearOfInc>
            <withinFiveYears>true</withinFiveYears>
            <value>2009</value>
        </yearOfInc>
    </primaryIssuer>

    <relatedPersonsList>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>N/A</firstName>
                <lastName>American Realty Capital Partners, LLC</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>405 Park Avenue</street1>
                <city>New York</city>
                <stateOrCountry>NY</stateOrCountry>
                <zipCode>10022</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Member</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Nicholas</firstName>
                <lastName>Schorsch</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o American Realty Capital</street1>
                <street2>405 Park Avenue</street2>
                <city>New York</city>
                <stateOrCountry>NY</stateOrCountry>
                <zipCode>10022</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>CEO and Managing Director</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>William</firstName>
                <lastName>Kahane</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o American Realty Capital</street1>
                <street2>405 Park Avenue</street2>
                <city>New York</city>
                <stateOrCountry>NY</stateOrCountry>
                <zipCode>10022</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>President, COO and Treasurer</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Peter</firstName>
                <lastName>Budko</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o American Realty Capital</street1>
                <street2>405 Park Avenue</street2>
                <city>New York</city>
                <stateOrCountry>NY</stateOrCountry>
                <zipCode>10022</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Chief Investment Officer and Executive Vice President</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Michael</firstName>
                <lastName>Weil</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o American Realty Capital</street1>
                <street2>405 Park Avenue</street2>
                <city>New York</city>
                <stateOrCountry>NY</stateOrCountry>
                <zipCode>10022</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Secretary and Executive Vice President</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Brian</firstName>
                <lastName>Block</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o American Realty Capital</street1>
                <street2>405 Park Avenue</street2>
                <city>New York</city>
                <stateOrCountry>NY</stateOrCountry>
                <zipCode>10022</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>CFO and Senior Vice President</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Michael</firstName>
                <lastName>Reiter</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o American Realty Capital</street1>
                <street2>405 Park Avenue</street2>
                <city>New York</city>
                <stateOrCountry>NY</stateOrCountry>
                <zipCode>10022</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Vice President</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Curtis</firstName>
                <lastName>Parker</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>c/o American Realty Capital</street1>
                <street2>405 Park Avenue</street2>
                <city>New York</city>
                <stateOrCountry>NY</stateOrCountry>
                <zipCode>10022</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Vice President</relationshipClarification>
        </relatedPersonInfo>
    </relatedPersonsList>

    <offeringData>
        <industryGroup>
            <industryGroupType>Commercial</industryGroupType>
        </industryGroup>
        <issuerSize>
            <revenueRange>$5,000,001 - $25,000,000</revenueRange>
        </issuerSize>
        <federalExemptionsExclusions>
            <item>06</item>
        </federalExemptionsExclusions>
        <typeOfFiling>
            <newOrAmendment>
                <isAmendment>false</isAmendment>
            </newOrAmendment>
            <dateOfFirstSale>
                <value>2009-10-13</value>
            </dateOfFirstSale>
        </typeOfFiling>
        <durationOfOffering>
            <moreThanOneYear>true</moreThanOneYear>
        </durationOfOffering>
        <typesOfSecuritiesOffered>
            <isDebtType>true</isDebtType>
        </typesOfSecuritiesOffered>
        <businessCombinationTransaction>
            <isBusinessCombinationTransaction>false</isBusinessCombinationTransaction>
        </businessCombinationTransaction>
        <minimumInvestmentAccepted>25000</minimumInvestmentAccepted>
        <salesCompensationList>
            <recipient>
                <recipientName>American Investors Company</recipientName>
                <recipientCRDNumber>38</recipientCRDNumber>
                <associatedBDName>None</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>2682 Bishop Dr., Suite 123</street1>
                    <city>San Ramon</city>
                    <stateOrCountry>CA</stateOrCountry>
                    <zipCode>94583</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <state>AL</state>
                    <state>AZ</state>
                    <state>AR</state>
                    <state>CA</state>
                    <state>CO</state>
                    <state>CT</state>
                    <state>DE</state>
                    <state>DC</state>
                    <state>FL</state>
                    <state>GA</state>
                    <state>HI</state>
                    <state>ID</state>
                    <state>IL</state>
                    <state>IN</state>
                    <state>KS</state>
                    <state>KY</state>
                    <state>ME</state>
                    <state>MD</state>
                    <state>MA</state>
                    <state>MI</state>
                    <state>MN</state>
                    <state>MS</state>
                    <state>MO</state>
                    <state>MT</state>
                    <state>NV</state>
                    <state>NJ</state>
                    <state>NM</state>
                    <state>NY</state>
                    <state>NC</state>
                    <state>OH</state>
                    <state>OK</state>
                    <state>OR</state>
                    <state>PA</state>
                    <state>RI</state>
                    <state>SD</state>
                    <state>TN</state>
                    <state>TX</state>
                    <state>UT</state>
                    <state>VT</state>
                    <state>VA</state>
                    <state>WA</state>
                    <state>WI</state>
                    <state>WY</state>
                </statesOfSolicitationList>
            </recipient>
            <recipient>
                <recipientName>Calton &amp; Associates</recipientName>
                <recipientCRDNumber>20999</recipientCRDNumber>
                <associatedBDName>None</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>14497 N. Dale Mabry Hwy</street1>
                    <street2>Ste 215</street2>
                    <city>Tampa</city>
                    <stateOrCountry>FL</stateOrCountry>
                    <zipCode>33618</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <value>All States</value>
                </statesOfSolicitationList>
            </recipient>
            <recipient>
                <recipientName>Realty Capital Securities, LLC</recipientName>
                <recipientCRDNumber>145454</recipientCRDNumber>
                <associatedBDName>None</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>3 Copley Place</street1>
                    <street2>Suite 3300</street2>
                    <city>Boston</city>
                    <stateOrCountry>MA</stateOrCountry>
                    <zipCode>02116</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <value>All States</value>
                </statesOfSolicitationList>
            </recipient>
            <recipient>
                <recipientName>J.P. Turner &amp; Company, LLC</recipientName>
                <recipientCRDNumber>43177</recipientCRDNumber>
                <associatedBDName>None</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>One Buckhead Plaza</street1>
                    <street2>3060 Peachtree Rd. NW, 11th Floor</street2>
                    <city>Atlanta</city>
                    <stateOrCountry>GA</stateOrCountry>
                    <zipCode>30305</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <value>All States</value>
                </statesOfSolicitationList>
            </recipient>
            <recipient>
                <recipientName>Investors Capital Corp.</recipientName>
                <recipientCRDNumber>30613</recipientCRDNumber>
                <associatedBDName>None</associatedBDName>
                <associatedBDCRDNumber>None</associatedBDCRDNumber>
                <recipientAddress>
                    <street1>230 Broadway East 203</street1>
                    <city>Lynnfield</city>
                    <stateOrCountry>MA</stateOrCountry>
                    <zipCode>01940-2320</zipCode>
                </recipientAddress>
                <statesOfSolicitationList>
                    <value>All States</value>
                </statesOfSolicitationList>
            </recipient>
        </salesCompensationList>
        <offeringSalesAmounts>
            <totalOfferingAmount>10500000</totalOfferingAmount>
            <totalAmountSold>6493672</totalAmountSold>
            <totalRemaining>4006328</totalRemaining>
        </offeringSalesAmounts>
        <investors>
            <hasNonAccreditedInvestors>false</hasNonAccreditedInvestors>
            <totalNumberAlreadyInvested>38</totalNumberAlreadyInvested>
        </investors>
        <salesCommissionsFindersFees>
            <salesCommissions>
                <dollarAmount>844177</dollarAmount>
                <isEstimate>true</isEstimate>
            </salesCommissions>
            <findersFees>
                <dollarAmount>0</dollarAmount>
            </findersFees>
            <clarificationOfResponse>Includes selling commission, marketing and due diligence expenses, non-accountable organizational and Offering expenses and wholesaling fee.</clarificationOfResponse>
        </salesCommissionsFindersFees>
        <useOfProceeds>
            <grossProceedsUsed>
                <dollarAmount>861970</dollarAmount>
                <isEstimate>true</isEstimate>
            </grossProceedsUsed>
            <clarificationOfResponse>This amount represents the payment to American Realty Capital Partners, LLC or its affiliates of an acquisition fee and a financing coordination fee.</clarificationOfResponse>
        </useOfProceeds>
        <signatureBlock>
            <authorizedRepresentative>false</authorizedRepresentative>
            <signature>
                <issuerName>ARC Income Properties III LLC</issuerName>
                <signatureName>/s/ Brian Block</signatureName>
                <nameOfSigner>Brian Block</nameOfSigner>
                <signatureTitle>CFO and Senior Vice President</signatureTitle>
                <signatureDate>2009-10-23</signatureDate>
            </signature>
        </signatureBlock>
    </offeringData>
</edgarSubmission>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----