JENKINTOWN, PA-American Financial Realty Trust has sold or signed definitive agreements to sell 13 properties aggregating 711,000 sf for approximately $54.6 million, or about $76.79 per sf, in cash. All are considered non-core and Nicholas S. Schorsch, president and CEO of the locally based financial REIT, says the company’s disposition of non-core assets “is running ahead of schedule.”

Of the total space in this disposition, 545,000 sf, or 77% of the total, is currently vacant or occupied under short-term leases. The remaining 23%, or 166,000 sf, is occupied on a long-term basis. Some of the sales have reached completion and the rest are expected to close by year-end.

American Financial anticipates approximately $3.1 million in pre-tax gains from the sale in this quarter. In all, it has disposed of nearly 545,000 sf in actual or pending vacancy in this quarter alone, according to Schorsch. “Generally, we expect to save approximately $8 per sf in operating expenses from the sale of pure vacancy,” he says, “while our return on the sale of occupied properties will vary based on the terms of the underlying leases.”

The disposed property locations and buyers are undisclosed. In the last half of this year, American Financial acquired a 140-building portfolio from Wachovia and a 248-building Bank of America portfolio in sale/leaseback agreements. Both portfolios contained significant vacant space that resulted primarily from those financial institutions’ previous mergers and acquisitions.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.