The aggregate purchase price is $546 million and follows by a day American Financial's agreement to acquire a 236-property, 7.5-million-sf portfolio from Bank of America for the same price. The Wachovia purchase is expected to close in the third quarter of this year.

Wachovia will lease approximately five million sf in the portfolio for 20 years at an annual triple-net rental rate equal to approximately 8.5% of the purchase price for the leased space. It will lease another 1.1 million sf short term for a rate equal to the operating expenses for those properties.

The portfolio contains 24 properties deemed "non-core" by American Financial, and they will be put up for sale immediately following the close. Once sold, Wachovia's occupancy in the portfolio will rise above 80%.

Noting that the REIT's relationship with Wachovia "continues to evolve and grow," Nicholas S. Schorsch, American Financial's president and CEO, says the Wachovia transaction demonstrates his company's ability "to work with our best customers…to fashion complete solutions to their real estate needs." American Financial went public as AFR on the NYSE on June 25, 2003.