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News
American Realty Capital Closes on 39 Bank Branch Properties, Eyes More over the Next Year
August 24, 2008
New York, NY
American Realty Capital announced today that it has closed on 39 of more than 100 bank branches it plans to purchase this year through a previously announced agreement with Wachovia Corp. to acquire its surplus bank branches. The 39 vacant Wachovia branches held an aggregate purchase price of over $53 million. In addition, the Company has stated it will purchase more than 70 branch locations over the next year, as it continues to take advantage of favorable market conditions for retail bank properties and assist Wachovia in efficiently disposing of surplus real estate assets.
“We are responding to an increased demand from the financial community for vacated branches,” said Nicholas S. Schorsch, CEO of American Realty Capital. “Many commercial banks are returning to their roots, i.e., retail banking. Part of the allure is the ability to build their depository base, provide a variety of profitable financial services to their depositors, and borrow FDIC-insured funds at low rates and lend at much higher ones.”
“To better manage our distribution network, Wachovia continuously opens new branches and consolidates or refurbishes old branches,” said John Saclarides, Senior Vice President and Transaction Executive, Wachovia Corporate Real Estate. “The dollars we save by better managing our distribution network can be reinvested into more and better products, services and locations for our customers.”
Of the 39 locations that American Realty Capital has closed on over the past month, 15 have been sold primarily to financial institutions and four more will be leased to banks.
“We have been able to move branches quickly and successfully because we are offering banks an easy transition,” said Mr. Schorsch. “Many times what banks get coming into an existing branch space is an interior already designed to meet their business needs and the ability to be open for business and making profits in less than 90 days.”
American Realty Capital is a real estate finance and investment firm formed by Nicholas S. Schorsch and William M. Kahane. As CEO and board member, respectively, the two were behind the growth of American Financial Realty Trust, where they acquired over 1,500 properties valued at more than $5 billion. In the last five years, ARC’s executive team has collectively negotiated and closed on over $7 billion of bank branch and net leased real estate.
For more information, visit www.americanrealtycap.com.
This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors.
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