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  SunTrust


Average Property & Lease

Average Sale Price$1M - $2.5M
CAP Rate (12mo avg with 10+ lease term)5.52%
NOI$103,451
$/Square Foot$800 - $1,000
Building Size3,000 - 5,500 sf
Lot Size1 - 2 acres
Lease Term15 - 20 Years
Escalations10-12% Every 5 Years
CREDIT RATING
A-
S&P
Baa1
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM
Net Lease Advisor Overview

SunTrust Bank seems to have weathered the hits it took during the banking crisis and great recession. Analysts revised the outlook to Positive for SunTrust indicating that loan growth and an improved portfolio to reduce credit risk coupled with a measured approach to extending credit have put the institution on more stable footing.

SunTrust Bank is a diversified financial services holding company whose businesses provide a range of financial services to consumer and corporate clients. The Company operates in three segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. Through its principal subsidiary, SunTrust Bank, the Company offers a full line of financial services for consumers and businesses including deposit, credit, and trust and investment services. Additional subsidiaries provide mortgage banking, asset management, securities brokerage, and capital market services. SunTrust operates primarily within Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia. SunTrust provides clients with a selection of branch-based and technology-based banking channels, including the Internet, automatic teller machine (ATMs), and twenty-four hour telebanking.

Pros

Cons

  • 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
  • Retail banking industry outlook on necessity of physical locations is evolving
  • Mainly an east coast bank
Tenant Description

SunTrust Banks, Inc., is an American bank holding company. The largest subsidiary is SunTrust Bank. SunTrust Bank's most direct corporate parent was established in 1891 in Atlanta, where its headquarters remain.

SunTrust's more than 1,500 retail branches and 2,800 ATMs are located primarily in Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia and the District of Columbia. In addition, SunTrust provides clients with a full selection of technology-based banking channels including online, state-of-the-art customer services centers, and through the latest mobile devices.


SUNTRUST TREND
CAP Rate

2013 avg: 6.43%

2014 avg: 6.03%

RECENT SALES

Greensboro, NC

$2,000,000 | 5.75%

Apopka, FL

$2,007,000 | 6.75%

MORE INFO
www.suntrust.com
Google Finance: STI
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