AFRT Cites 1st Property Buy

American Financial Realty Trust, a real estate investment trust based in Jenkintown, Pa., has made its first property acquisition following a recent initial public offering.The REIT has acquired a portfolio of 158 properties, totaling approximately 8.1 million square feet, for $769.8 million in a sale/leaseback transaction with Bank of America. BoA is leasing 5.2 million square feet of the portfolio for 20 years on a triple-net basis (whereby the bank will be responsible for some property maintenance expenses). The bank is also leasing an additional 804,000 square feet on a short-term basis, the REIT said. Another 813,000 square feet of space is leased to other tenants. The portfolio includes office buildings, banking, and operations centers in 19 states, including the Bank of America Center, a 1.03 million-square-foot Chicago building. "This transaction is consistent with our strategy to be the preferred landlord to financial institutions with high credit profiles," said Nicholas Schorsch, chief executive officer of AFRT.