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  PNC Bank


Average Property & Lease

Average Sale Price$7,080,000
CAP Rate (12mo avg with 10+ lease term)4.95%
NOI$346,797
$/Square Foot$800.00
Building Size3,500 - 4,800 sf
Lot Size1.00 - 1.5 +/- acres
Lease Term15 - 20 Year NNN
Escalations10 - 15% every five years
CREDIT RATING
A
S&P
A2
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 26, 2016
Net Lease Advisor Overview

PNC Bank's solid footing and strong investment grade credit rating make it a very attractive commodity to passive investors in the NNN investment market.

PNC Bank is a growing network of bank branches, with increasingly visible locations in both urban and suburban settings. PNC sites are approximately 1.00 - 1.5 acres with improvements of 3,500 to 4,800 square feet. Many are sold as ground leases* to NNN investors.

*In a ground lease, the investor/landlord owns the ground and the tenant (typically) builds and owns the improvements. The tenant leases the ground from the investor/landlord and on the tenant's default or other termination of the lease; the building becomes the property of the ground owner. Ground leases are extremely passive investments and generally sell at 50 to 125 basis points below the average cap rate for NNN "fee simple" ownership of ground and structure transactions leased by the same tenant.

The PNC Bank ground leases typically have an initial term of 15 to 20 years with up to 5, five year renewal options. Furthermore, the PNC Bank ground lease provides rent increases of 10-15% every five years. These features make the PNC ground lease a highly sought after investment opportunity.
 

Pros

Cons

  • Strong corporate guarantee
  • Secure NNN ground lease structure
  • 10%+ rent bumps throughout lease term
  • Well-located assets
  • Financial markets questioning strength of banking industry
  • Low asking cap rates
  • Often have high initial rents
  • No depreciation with a ground lease
Tenant Description

PNC Financial Services Group, Inc. is a U.S.-based financial services corporation. PNC operations include a regional banking franchise operating primarily in fifteen states and the District of Columbia, specialized financial businesses serving companies and government entities, and leading Turnkey Asset Management Program (TAMP) and processing businesses. PNC is the sixth largest bank by deposits in the United States and is the third largest bank off-premise ATM provider.

PNC provides deposit, lending, cash management and investment services to over 5 million consumer and small business customers It offers 2,500 branches, 6,600 ATM machines, and online banking.


PNC BANK TREND
CAP Rate

2014 avg: 5.80%

2015 avg: 5.95%

RECENT SALES

Sunrise, FL

$4,900,000 | 5%

Lower Makefield, PA

$4,360,000 | 6.65%

MORE INFO
www.pnc.com
Google Finance: PNC
Google News: PNC