American Financial Realty Trust is under contract to buy interests in two separate office buildings located in San Francisco and Philadelphia. The two acquisitions add up to 432,000 sq. ft. of office space. American Financial spent roughly $104 million on the purchase, which was offered by two separate sellers.
The Philadelphia property is 94% occupied, according to the firm. The San Francisco property, meanwhile, is fully occupied by Wells Fargo Bank.
“We are extremely pleased to announce contracts for two acquisitions, both in major financial markets. We are also happy to significantly expand our relationship with Citizens Bank, and to establish an important new relationship with Wells Fargo,” says Nicholas Schorsch, president and chief executive officer at American Financial.
AFR expects the two properties to generate an unleveraged return of roughly 7.6% in 2006, which will be the firm’s first full year of ownership.