The Philadelphia asset is 94% leased, and Citizens Bank, a subsidiary of Royal Bank of Scotland Group, is the primary tenant. Citizens is among the locally based financial REIT's longtime clients. The San Francisco building is 100% occupied by Wells Fargo Bank, and this represents AFR's first Wells Fargo acquisition. The Las Vegas acquisition is 96% occupied by Bank of America, AFR's largest tenant.
The properties were acquired with a combination of approximately $49 million in cash and about $79 million in secured fixed-rate financing. The Philadelphia asset has $42 million in eight-year secured debt at a fixed interest rate of 6.17%. The Las Vegas property has $17 million in 10-year secured debt at a fixed interest rate of 5.41%. Terms and interest rate on $19 million in secured debt on the San Francisco property are undisclosed. That funding will be refinanced when it matures in May 2006.
With completion of these acquisitions, AFR has acquired 22 properties this year, aggregating approximately 1.3 million sf at an aggregate investment cost of about $239 million. Nicholas Schorsch, president and CEO, says the company's pipeline "remains robust and we expect to announce additional acquisition activity later this quarter and through the remainder of 2005."
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