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Pontus Picks Up 61 Bank Branches

LA JOLLA, CA—The triple-net leased portfolio of national and regional credit tenants is located primarily on the East Coast along with eight locations in California.

By Paul Bubny | paulbubny | | Updated on April 27, 2016
A Regions Bank branch A Regions Bank branch, one of 61 triple net-leased properties traded to Pontus.
LA JOLLA, CA—Locally based Pontus Capital has landed $109 million in acquisition financing for a portfolio of 61 triple-net leased bank branches. HFF secured the financing on Pontus’ behalf through CCRE; published reports identify the seller as KBS Real Estate Investment Trust Inc. The 98% leased portfolio, which traded for a reported total of $139.6 million to Pontus Net Lease Advisors LLC, consists of 19 national and regional credit tenants. Among the tenants are BB&T, Regions Bank, SunTrust Bank, Wells Fargo Bank, Bank of America and Fifth Third Bank. Twenty-seven of the branches are located in Florida, eight each are in California and North Carolina, seven in Georgia, four each in South Carolina and Virginia, two in New Jersey and one in Arkansas. HFF’s debt placement team was led by director Jordan Angel, who worked closely with the lender and borrower. “This deal closed at a time when the secondary market for floating-rate loans became very illiquid,” says Angel. “Pontus’s reputation as a top operator in the net lease space along with HFF’s capital relationships helped to get this deal financed.” Published reports say KBS REIT I recognized a gain of about $30 million from the sale to Pontus, after fees and expenses. Included in the purchase price was a payment of $6.6 million to compensate the non-traded REIT for costs and expenses associated with nullifying the mortgage loans on the properties, which had a total outstanding principal balance of $102.3 million.

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