Nicholas Schorsch of AFR

Talk about real estate you can bank on. Jenkintown, PA-based American Financial Realty Trust has cut a wide niche for itself focusing on the acquisition of assets held by financial institutions of all stripes. In most cases the deal revolves around a leaseback, although the deal can also reposition the property for other financial users. While it’s a focused specialty, it’s got incredible growth potential, says president and CEO Nicholas Schorsch, explaining that it’s a $230-billion market. All you have to do is perform a search on GlobeSt.com to see how that growth translates into deals, such as AFR’s $114-million acquisition of the Regions Financial portfolio, its Wachovia branch acquisition or its $570-million BofA buy . In addition, on Friday, AFR unveiled its $1-billion joint-venture redevelopment plan. AFR, which went public two years ago, now boasts a $4.5-billion portfolio consisting of 1,070 buildings in 36 states, says Schorsch, who claims that this is $1.5 billion more than at the same time last year. But doesn’t a solitary focus increase exposure to risk, and despite regulations, isn’t it possible that the financial market could at some unforeseen date and for some unforeseen reason, tank? Schorsch’s answers are enlightening.

GlobeSt.com: Just for the record, explain the strategy and what you feel makes it unique.

Schorsch: Our strategy from the beginning has been focused on a customer-centric model built around the banking and financial industry. Those are our primary tenants, as well as insurance carriers and investment banks. Acquiring assets within the financial industry allows us to address a unique set of needs. For example, they own the same type of real estate in every city across America. They own the same type of bank branches, office facilities, operation centers, credit-card and check-processing facilities, all of which are uniquely designed and positioned in the market. They are usually on Main Street in primary areas.