The crown jewel among the portfolio's office buildings and banking and operations centers is Bank of America Center, a 50-story, 1.03-million-sf, class-A office facility at 231 S. LaSalle St. in Chicago's financial district, just across from the Chicago Board of Trade.
Bank of America will lease 5.2 million sf of the portfolio for 20 years on a triple-net basis. It will lease an additional 804,000 sf on a short-term basis. Approximately 813,000 sf of the portfolio are leased to third-party tenants.
The transaction comes on the heels of American Financial's initial public offering. On June 30, it completed the sale of more than 64 million common shares for an aggregate price of $804.3 million.
The transaction "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," said Robert M. Patterson, SVP of corporate real estate, Bank of America.
Nicholas S. Schorsch, CEO of American Financial, said, "this transaction is consistent with our strategy to be the preferred landlord to financial institutions with high credit profiles."
The law firm of Morgan, Lewis & Bockius LLP served as counsel to American Financial in the acquisition and leasing transactions. Trammell Crow Services Inc. and Jones Lang LaSalle Americas Inc. represented Bank of America in the negotiations.
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