This follows by one day, the locally based financial REIT's agreement to buy a 7.5-million-sf, 263-property portfolio from Bank of America for $546 million. The two acquisitions increase the number of properties in American Financial's portfolio as of May 31, by 88% and the portfolio's aggregate sf by 86%.

Today's agreement identifies the seller only as a "major national bank" with an "A" S&P rating. The portfolio composition includes bank branches and both large and small office buildings. The locations are undisclosed.

The seller will lease approximately five million sf in the portfolio for a 20-year term at an annual triple-net rate equal to approximately 8.5% of American Financial's purchase price for the leased space. In addition, the seller will lease 1.1 million sf in the portfolio on a temporary basis for rent equal to operating expenses for the properties.

Within the portfolio are 24 properties that American Financial deems non-core. They have an aggregate of approximately two million sf and will be immediately put on the sales block. Once sold, the seller's occupancy within the portfolio will rise above 80%.

"This transaction runs to the core of our acquisition strategy, as it includes both bank branches and office buildings," says Nicholas S. Schorsch, president and CEO of American Financial. "We believe that the portfolio offers significant growth potential through dispositions of non-core assets and the lease-up of acquired vacancy."

This transaction is expected to close during the third quarter of this year, following the closing of B of A acquisition, which is expected to occur on or before July 31 this year. "Thus, we have ample time to review various financing alternatives for the portfolio, as well as the Bank of America portfolio transaction announced yesterday," Schorsch says.