Truist Bank Tenant Overview
Updated: January 10, 2023
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
In February 2019, BB&T Corporation (NYSE: BBT) and SunTrust Banks, Inc. (NYSE: STI) announced a merger to become the sixth-largest U.S. bank based on assets and deposits. With 275 years of combined BB&T and SunTrust history, Truist (NYSE: TFC) offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending and wealth management. Headquartered in Charlotte, North Carolina, Truist serves approximately 12 million households with leading market share in many high-growth markets in the country.
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 Charlotte, NC, Truist operates more than 2,781 financial branches 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, Truist is consistently recognized for outstanding client satisfaction by the US Small Business Administration, and executed nearly 23 Billion in revenue.
Average Cap Rate
5.25%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price |
$2,128,400 |
NOI |
$210,000 |
$/Square Foot |
$532 - $709 |
Building SF |
3,000 - 4,000 |
Lot Size |
0.5 - 2.0 Acres |
Lease Term |
15 Years |
Escalations |
1 - 2% Annually |
Stock Symbol |
N/A |
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Bradenton, FL |
4.70% |
Lancaster, PA |
6.50% |
Manakin Sabot, VA |
6.75% |
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