Jones Lang LaSalle (JLL) has closed the sale of 139 SunTrust Bank locations in the United States for $240 million on behalf of Inland American REIT. The portfolio encompasses 715,000 square feet, 100 percent net-leased, throughout the Mid-Atlantic and Southeast.
The name of the buyer was not disclosed.
“The sale marked a prime opportunity for the investor to acquire a large portfolio absolute net leased to one of the nation’s leading financial institutions,” says Guy Ponticiello, JLL managing director. “The secure, growing cash flow of the SunTrust portfolio enables them to provide consistent returns for investors.
JLL has closed more than $500 million of single-tenant, net-leased bank properties across the country in the past 12 months. With another $500 million in bank credit offerings currently on the market, Ponticiello anticipates more of the same in the future.
“This is far from the only large-scale portfolio sale of triple-net-leased properties we expect to see this year as portfolio acquisitions of this size allow investors to deploy capital quickly and efficiently, making them a formidable force in the market,” he says.
What’s more, supply will be able to match the quick pace of purchase, Ponticiello predicts.
“The ability for sellers and occupiers to capture strong pricing due to the attractive, low-cap rate environment is continuing to be a motivating force, and we expect a significant amount of new offerings to hit the market in the second half of the year,” he says.
According to its website, Inland American owned 565 properties as of June 30, including approximately 41 million square feet of retail, industrial and office space; 5,186 multifamily units; 6,521 student housing beds; and 16,645 hotel rooms. The trust is one of six REITs sponsored by the Inland Real Estate Group of Companies Inc., which is based in Chicago.
The SunTrust portfolio is split into eight sub-portfolios and is subject to a long-term master lease that effectively creates a 15-year term. Approximately 40 percent of the properties are located in Florida.
Ponticiello, Bruce Westwood-Booth, Rob Bickel and Brian Shanfeld led the JLL team in representation of the seller.
SunTrust, headquartered in Atlanta, operates 1,539 retail branches and 2,874 ATMs in 11 states and Washington, D.C. The corporation’s stock (NYSE: STI) closed at $33.88 on Wednesday, up from $25.20 year-over-year.