WASHINGTON, DC-Inland American REIT is putting a 143-asset portfolio on the market. The retail bank branches are located primarily in the Mid-Atlantic and the southeast US. Jones Lang LaSalle’s Guy Ponticiello, Bruce Westwood-Booth, Rob Bickel and Brian Shanfeld are marketing the portfolio, which clocks in at a $280 million, give or take, value. “We are expecting it to trade at a 6.5% cap rate,” Ponticiello tells GlobeSt.com.
The 715,000-square foot portfolio can trade in its entirety or be broken into eight sub-portfolios, each of which contains about 18 branches. The seller is not willing to consider one-off or a couple of sales, Ponticiello says.
The sub-portfolios are encumbered with a master lease structure. That is, all 18 properties in the sub-portfolio has an individual lease with SunTrust but these are wrapped into a master lease structure. If the tenant wishes to renew, it must be at no less than 75% of net operating income, he says. “That makes the probability of renewal very high.” JLL released the offering memorandum just last week but reports a very positive reaction from the debt markets already. “It was a 10-year interest-only quote at 3.8%,” Ponticiello says.
The SunTrust assets performed well in Inland’s portfolio, according to Jeff Manno, vice president of transactions of Inland American. The REIT is selling the assets in order to into additional multi-tenant, necessity-based retail properties, he says in a prepared statement.