X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PROVIDENCE, RI-Citizens Financial Group has sold its 13-story 224,089-sf headquarters here to publicly held American Financial Realty Trust for $60.2 million. As part of the deal, Citizens leased back 93,000 sf (42%) of the building for 10 years on a net lease basis. The building is 100% leased, with 153,000 sf (69%) occupied by financial institutions.

Jenkintown, PA-based AFRT financed the acquisition under a short-term bridge facility at a rate of LIBOR plus 1.40% pending the placement of permanent financing on the property. It anticipates an average capitalization rate of approximately 7% based on the projected cash flows under the existing leases.

AFR is a REIT that acquires properties from, and leases properties to, regulated financial institutions. This latest transaction–the sixth AFR has executed with Citizens Financial–was part of AFR’s “Landlord of Choice” program.

AFR chief executive Nicholas Schorsch tells GlobeSt.com the program offerings include arrangements whereby AFR will purchase every vacant branch in a bank’s portfolio, execute multiple sale-leaseback transactions, and acquire larger bank portfolios that include offices, operations centers and bank branches. AFR’s portfolio now totals 1,000 buildings, 700 of them bank banches and the rest are office buildings and operations centers. It clientele includes Bank of America, US Bancorp, Wachovia, Citigroup, AIG and Charles Schwab, among others.

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?

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.