BB&T Corporation (Branch Banking & Trust) is an American bank with assets of US$157 billion (March 2011), offering commercial and retail banking services. From a net lease investors perspective, here are some pros and cons:
Pros:
- Investment grade tenant.
- Leases afford rental increases throughout the primary term, many with annual rental increases.
- Generally well located, either as out parcel to grocery anchored shopping center.
- Many locations are occupied as fee simple leases, allowing for depreciation versus the preferred ground lease scenario of most other bank brands.
Cons:
- As BB&T expands through acquisition, overlap of retail branches may occur.
- Retail banking industry outlook on necessity of physical locations is evolving.
- When located as a part of a shopping center, some use restrictions may apply.
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Jonathan Hipp
Jonathan Hipp began his career in real estate over 25 years ago. In his early years as a broker, he ventured into the net lease industry and quickly began leading the US net lease market, closing over $3 billion in transactions. In 2005, Jon founded Calkain Companies, a company focused solely on net lease investment services. As President and CEO, he has been instrumental in building the firm into one of the leading Net Lease real estate companies, transacting over $12 billion of net lease deal volume over the past 13 years. He has expanded Calkain’s services to include brokerage, advisory, asset management, capital markets, and industry research. He has become a well-known resource, panelist, and speaker at various Net Lease and Industry conferences and is a regular contributor to GlobeSt.com on real estate trends. In June 2015, Jon’s passion for the real estate business was again recognized as he was nominated for the Top Real Estate Player in the DC area by SmartCEO magazine.
