BB&T Bank TENANT OVERVIEW


Pros

  • Investment grade tenant
  • Many locations are occupied as fee simple leases, allowing for depreciation versus the preferred ground lease scenario of most other bank brands
  • Generally well located, in both urban and suburban settings

Cons

  • Retail banking industry outlook on necessity of physical locations is evolving

Tenant Description

BB&T is one of the largest financial services holding companies in the US. As of December 31, 2016, holds $219.3 billion in assets and had a market capitalization of $38.1 billion.

BB&T continues to be a strong net lease asset to hold. While most banks tend to sign ground leases, BB&T typically signs NNN leases. While both leases place zero landlord responsibility on the investor, a NNN lease will carry higher rents than the ground leased counterparts.

Based in Winston-Salem, NC, the company operates 2,196 financial centers in 15 states and Washington, DC. BB&T offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services.

A Fortune 500 company, BB&T is consistently recognized for outstanding client satisfaction by the US Small Business Administration, Greenwich Associates and others. BB&T also has been named one of the World's Strongest Banks by Bloomberg Markets Magazine, one of the top three in the US and in the top 15 globally.

finviz dynamic chart for  BBT
Average Cap Rate
4.87%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $3,208,352
NOI $156,483
$/Square Foot $650 - $850
Building SF 7,000
Lot Size 0.5 - 2.0 Acres
Lease Term 15 Years
Escalations 1 - 2% Annually
Stock Symbol BBT
Credit Rating
S&P A-
Moody's A2
Average Cap Rate Trend
5.57%
2016
5.35%
2017
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Roswell, GA 5.35%
Front Royal, VA 4.84%