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Harleysville Gains $39M in Sale-Leaseback

HARLEYSVILLE, PA-The bank sells 16 branches to American Realty Capital and leases them back for terms of between five and 15 years.

By Marita Thomas | Updated on November 26, 2007

HARLEYSVILLE, PA-Harleysville National Bank has entered into an agreement to sell 16 branches to New York City-based American Realty Capital LLC and lease back all of them. ARC will pay approximately $38.8 million, according to an SEC filing by the locally based subsidiary of Harleysville National Corp.

ARC was formed by Nicholas Schorsch, founder and former CEO of Jenkintown-based American Financial Realty Trust, who left that company by mutual agreement with the board in August 2006. This marks ARC’s first deal with a financial firm, Schorsch tells GlobeSt.com, and it occurred within two weeks of his release of a non-compete agreement with AFR.

Of the Harleysville deal, he says, “it’s a perfect diversification under our plan,” which, as GlobeSt.com previously reported, focuses on sale-leasebacks of creditworthy, single-tenant, primarily retail properties net leased for at least 10 years. “Bank branches are a natural expansion for us,” Schorsch says, adding, “absolutely we plan more of them.”

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