NEW YORK CITY—Nearly 50 Citibank branches around the city and some areas beyond it up have been put up for sale in a net lease deal. The properties belong to a private seller.
The portfolio of 47 free standing single tenant sites is expected to sell for north of $150 million, according to Stan Johnson Co., which has the agency for this transaction. The properties are located throughout the five boroughs of New York City, as well as Nassau and Westchester counties.
Together, the bank branches make up a combined $9.1 billion in deposits and have been in operation for over 25 years. Jason Maier, senior director of Stan Johnson's office here, is heading the marketing efforts on this sizable portfolio.
“Brands of this caliber are in demand by investors when it comes to single-tenant net leased assets,” he says. “This portfolio also presents a buyer with the protection of strong residual real estate fundamentals with significant upside as the first lease renewal option for all of these locations is at fair market value. The majority of rents are below market by 25% and, in some cases by as much as 80%.”
Maier continues, “There is safety and security in a net lease investment with the massive potential in the fair market value renewal as well as the potential to reposition the well-located assets should the tenant ever vacate. I see these properties appealing to a diverse set of buyers including foreign equity funds, institutions, value-add firms, and family offices.”
The portfolio of 47 free standing single tenant sites is expected to sell for north of $150 million, according to Stan Johnson Co., which has the agency for this transaction. The properties are located throughout the five boroughs of
Together, the bank branches make up a combined $9.1 billion in deposits and have been in operation for over 25 years. Jason Maier, senior director of Stan Johnson's office here, is heading the marketing efforts on this sizable portfolio.
“Brands of this caliber are in demand by investors when it comes to single-tenant net leased assets,” he says. “This portfolio also presents a buyer with the protection of strong residual real estate fundamentals with significant upside as the first lease renewal option for all of these locations is at fair market value. The majority of rents are below market by 25% and, in some cases by as much as 80%.”
Maier continues, “There is safety and security in a net lease investment with the massive potential in the fair market value renewal as well as the potential to reposition the well-located assets should the tenant ever vacate. I see these properties appealing to a diverse set of buyers including foreign equity funds, institutions, value-add firms, and family offices.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
