SEC Edgar Web Site - May 11, 2004
American Financial Realty Trust today announced that it has signed a contract to acquire a portfolio of 150 properties, totaling approximately 8.2 million square feet, from Wachovia Bank for an aggregate purchase price of approximately $547 million. The portfolio composition includes bank branches and both large and small office buildings. The Company expects to complete the acquisition in the third quarter.
Upon completion of the transaction, the seller will lease approximately 5.0 million square feet in the portfolio for a 20-year term at an annual triple net rental rate equal to approximately 8.5% of the Company's purchase price for the leased space, and will lease an additional 1.1 million square feet of space on a temporary basis for rent equal to operating expenses for the properties. A portion of the portfolio is currently leased to third parties, while the remainder of the portfolio will be acquired vacant.
Within the portfolio, American Financial intends to acquire 24 non-core properties, aggregating approximately 2.0 million square feet, and to immediately commence marketing these properties for sale. Assuming sale of these properties, the seller's occupancy within the portfolio will rise to over 80%.
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Saturday, May 22, 2004
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