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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.
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.
This material does not constitute an offer to sell nor a solicitation of an offer to buy any securities described herein or otherwise. Only a prospectus for a specific securities offering makes such an offer. In that regard, the use of this material is authorized only when it is accompanied or preceded by a prospectus. Further, all information contained in this material is qualified by the terms of a current Prospectus of the offering of securities to which it relates, if any.
This material may contain forward-looking statements that involve assumptions, uncertainties and risks, some of which are set forth below. These statements are not guarantees and should not be regarded as representations that the results or conditions described in such statements, or that our objectives and/or plans, will be achieved.
A real estate investment program offering is subject to the following Risks: The failure to qualify, or maintain the requirements, to be taxed as a REIT would reduce the amount of income available for distribution and limit a REIT's ability to make distributions to its stockholders. No public market initially exists for a REIT's shares of common stock, and one may never exist for this or any other such type of real estate program. Securities are being offered on a best efforts basis. These are speculative securities and as such involve a high degree of risk. There are substantial conflicts among an offering and its sponsor, advisor, dealer manager and property manager. There is no assurance that the value of the real estate will be sufficient to return any portion of investors' original capital. Operating results will be affected by economic and regulatory changes that have an adverse impact on the real estate market and we cannot assure you that there will be growth in the value of the properties.
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Realty Capital Securities, LLC, Three Copley Place, Suite 3300, Boston, MA 02116, T 877-373-2522
American Realty Capital Trust, Inc., 405 Park Avenue, 15th Floor, New York, NY 10022, T 212-415-6500
American Realty Capital Advisors, LLC, 106 York Road, Jenkintown, PA 19046, T 215-887-2189
Realty Capital Securities, LLC (Member FINRA/SIPC), an affiliate of American Realty Capital Trust, Inc., is the dealer-manager for American Realty Capital Trust, Inc. Investors should consider a fund's investment objectives, risks, charges and expenses before investing. The Prospectus contains this as well as other important information. Carefully read and consider the information contained in the Prospectus before you invest or send money. The information on this site must be read in conjunction with the Prospectus in order to fully understand all the implications and risks of the offering of securities to which it relates. A copy of the Prospectus must be made available to you in connection with this offering.
Properties depicted in the photographs are of assets held in either American Realty Capital's current offerings or past real estate investment programs sponsored by American Realty Capital.
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