AFR Will Take $104M Stake in Philadelphia and San Francisco Properties

The Philadelphia property is approximately 94% occupied, primarily by Citizens Bank. Wells Fargo Bank occupies 100% of the San Francisco property, and this acquisition marks the locally based financial REIT's first purchase from Wells Fargo.

AFR will assume existing mortgage debt on the Philadelphia asset of about $42 million at a fixed interest rate of 6.17% with a remaining term of eight years. For the San Francisco property, it will assume $19 million of secured debt that matures in May 2006, after which the REIT intends to refinance. The remaining portion of its costs of acquiring these two properties will be paid with a combination of cash on hand and draws from its existing lines of credit. Both purchases are expected to reach completion later this month.

These agreements follow AFR's March 11 purchase of a 161,000-sf fully leased building in Cleveland for $9.5 million in its first acquisition from National City Bank. Also on March 11, it signed a contract to pay $24.3 million for an 80,000-sf building in Las Vegas that is fully leased to a financial institution identified only as a major commercial bank. This acquisition is also expected to close by the end of this month. For more information, go to AFR Pays $34M for Properties in Cleveland and Las Vegas.

Muriel Lange, an AFR principal, declined to disclose the locations of the three properties under contract or disclose AFR's proportionate interest in the Philadelphia and San Francisco assets until the closings. Shares of AFR common stock opened on the NYSE at $14.86 a share on March 14. The 52-week high, $17.75 a share, was reached on March 19, 2004, and the 52-week low of $12.60 a share, occurred on May 10, 2004.