Located at 800 Market Street, the class A office building is 96% leased. It is anchored by Bank of America NA, which leases 466,731 sf, and IBM, which leases 154,825 sf. Other tenants include PricewaterhouseCoopers and Key Bank. Total 2004 projected net operating income will be approximately $7.6 million, according to AFR.
The purchase price is exclusive of any debt prepayment and closing costs. To take advantage of current low interest rates and mitigate long-term interest rate risk, AFR has decided to refinance the building on a long-term basis and has agreed to prepay the current short-term debt at a cost of approximately $5.8 million.
"With secured long-term leases from credit-quality tenants, the acquisition of Bank of America Plaza provides enhanced depth and tenant diversity to our portfolio while establishing a presence in the St. Louis real estate market," says AFR president/CEO Nicholas Schorsch. "Looking ahead, American Financial continues to seek acquisition opportunities that will provide attractive returns to our shareholders."
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