ARC was formed by Nicholas Schorsch, founder and former CEO ofJenkintown-based American Financial Realty Trust, who left thatcompany by mutual agreement with the board in August 2006. Thismarks ARC's first deal with a financial firm, Schorsch tellsGlobeSt.com, and it occurred within two weeks of his release of anon-compete agreement with AFR.

Of the Harleysville deal, he says, "it's a perfectdiversification under our plan," which, as GlobeSt.compreviously reported, focuses on sale-leasebacks of creditworthy,single-tenant, primarily retail properties net leased for at least10 years. "Bank branches are a natural expansion for us," Schorschsays, adding, "absolutely we plan more of them."

The close of the sale is contingent on a 30-day due diligenceperiod and ARC's inspection of each branch. Under the agreement,the buyer can terminate all or some of the individual branch deals,but can't reduce the overall price to below $30 million. Throughoutthis period and after the close, Harleysville will continueoperations as usual and is responsible for operating, repair andmaintenance costs on the properties.