Pennsylvania-based American Financial Realty Trust (AFR) has sold five net leased office properties for a total of $301 million. The buyer is New York-based Resnick Development Corporation. The sale price equals a capitalization rate (or initial yield) of 6.7% for Resnick.
The five properties encompass roughly 1.16 million sq. ft. of rentable office space scattered between San Francisco, Philadelphia and North Carolina. The sale price translates into roughly $260 per sq. ft. and will result in a GAAP gain to AFR of approximately $42.5 million (minus closing costs).