American Financial REIT to Sell Five Net Leased Properties for $301 Million

American Financial Realty Trust Web Site - February 24, 2006

American Financial Realty Trust (NYSE:AFR), announced today that it has entered into an agreement of sale with Resnick Development Corp., a subsidiary of Jack Resnick & Sons, Inc., to sell five 100% occupied, net leased properties for a sale price of $301 million, before transactions and closing costs. The purchaser will reimburse the Company for approximately $16.0 million in loan defeasance and prepayment costs, which results in an implied cap rate on the sale of approximately 6.70%.

The properties to be sold by the Company, which aggregate approximately 1.16 million square feet of rentable area, include 215 Fremont Street, San Francisco, California, an approximately 373,000 square foot office building that is leased to Charles Schwab & Co., Inc., Condominium Unit # 1 at 123 S. Broad Street, Philadelphia Pennsylvania, an approximately 256,000 square foot commercial condominium unit that is leased to Wachovia Bank, National Association, and three operations centers located in Meridian, Idaho, Louisville, Kentucky and McLeansville, North Carolina, aggregating approximately 530,000 square feet, that are leased to Citicorp North America, Inc.

The sale price is approximately $260 per square foot and will result in a GAAP gain to the Company of approximately $42.5 million, net of estimated closing costs. The transaction is expected to close early in the second quarter 2006. The Company will retain the property management on the 123 South Broad condominium unit and be granted rights of first offer to reacquire all of the properties. Sphere: Related Content