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ARC Buys Branch Portfolio for $100M

JENKINTOWN, PA-Wachovia is selling the 100-plus bank branch portfolio to better manage its distribution network and reinvest the proceeds in new products and services.

By Erika Morphy | Updated on March 14, 2008

JENKINTOWN, PA-American Realty Capital II LLC has picked up 100-plus surplus bank branches from Wachovia Bank NA for more than $100 million. A multi-year transaction, the portfolio is trading hands in two tranches, with the first set of branches expected to transfer to American Realty Capital in this summer.

This is the largest transaction American Realty Capital has executed in this particular fund, which has been open since 2007, according to Nicholas Schorsch, CEO of American Realty Capital. “This is the exactly the type of transaction for which we created American Realty,” he tells GlobeSt.com. American Realty Capital acquires surplus bank branches that are empty and repositions them for other banks or other businesses, such as a Starbucks or Enterprise Rental Car or tax assistance center, to name a few examples. Sometimes, Schorsch adds, parcels are bought for land assemblage and the buildings torn down. American Realty Capital also acquires bank branches as part of a sale-leaseback transaction for a bank, allowing the bank to stay in the location.

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