Jones Lang LaSalle markets Sun Trust net lease portfolio

Published February 17, 2013 by Paula C. Squires

Jones Lang LaSalle’s Capital Markets Group in Chicago says the firm is marketing for sale the SunTrust Net Lease Portfolio on behalf of Inland American REIT. The portfolio includes 143 retail bank branches, encompassing 715,000 square feet, located throughout the mid-Atlantic and Southeastern U.S.

The properties are subject to a long-term master lease and are divided into eight geographically diverse sub-portfolios of bank branches. Investors have the option to bid on the entire portfolio or on individual sub-portfolios.

“Valued in excess of $275 million, the SunTrust Net Lease Portfolio provides the remarkable opportunity for a potential investor to acquire a substantial real estate portfolio absolute net leased to one of the nation’s leading financial institutions. We expect this portfolio to generate a significant amount of domestic and international investor interest,” Managing Director Guy Ponticiello said in a press release.

Net leases typically provide a secure long-term cash flow, because many of the terms are for 15 years.  According to JLL, the SunTrust master lease includes an option structure that effectively creates a 15-year lease term.

SunTrust is the 10th largest bank in the country with more than $130 billion in deposits and holds a strong market share in the states, including Virginia, in which the portfolio is located.