The buildings are in Louisville, KY, Greensboro, NC and Boise, IA. They have an aggregate of approximately 531,000 sf, split about evenly among the three properties, a Koll spokesperson tells GlobeSt.com. American Financial's purchase price will be between $85.6 million and $88.6 million, based on the construction requirements of the Citigroup affiliate. That puts the price at between $161.20 per sf and $166.85 per sf. The price is payable on completion. The properties will be developed concurrently, and completion is scheduled for the fourth quarter of this year.

The Citigroup leases are for an initial term of 15 years with two five-year renewal options. The rental rate, yet to be determined, will be based on an undisclosed percentage of American Financial's gross purchase price. Citigroup's parent, Citicorp, will guarantee the tenant's lease obligations, and American Financial assumes no development risk in the transactions.

Nicholas S. Schorsch, president and CEO of the REIT, which specializes in acquiring and leasing properties occupied by financial institutions, says the Landlord of Choice program "will allow us to partner with our most valuable banking tenants and their chosen development companies in new construction opportunities. American Financial is not a developer, but we are the preferred landlord of major banks. Through this program, our best customers can select American Financial as their landlord in advance, and we will purchase properties net leased to them upon completion of construction," he explains.