American Financial Realty Trust has purchased a portfolio of 158 properties from Bank of America Corp. for $769 million. The 8.1 million sq. ft. portfolio consists of office buildings, banking and operations centers scattered throughout 19 states and includes the 1 million sq. ft. Bank of America Center at 231 S. LaSalle Street in Chicago's financial district.
"We are very pleased with this transaction as it advances several key business objectives. Specifically, it will enable Bank of America to generate immediate cost savings as well as to increase our operating efficiency and reduce our role as a property manager for third-party tenants," says Robert Patterson, senior vice president of corporate real estate at Bank of America.
Bank of America will lease 5.2 million sq. ft. of the portfolio on a 20-year term. The bank also will lease an additional 804,000 sq. ft. on a short-term basis. Approximately 813,000 sq. ft. is leased to third-party tenants.
Shares of American Financial (NYSE: AFR) closed at $14.91 on Monday, up 6 cents, or 0.4%.
