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  TD Bank


Average Property & Lease

Average Sale Price$5,165,000
CAP Rate (12mo avg with 10+ lease term)4.30%
NOI$227,486
$/Square Foot$950.00
Building Size4,400 sf
Lot Size1.3 +/- acres
Lease Term20 Year Ground Lease
Escalations12% Every 5 Years
CREDIT RATING
AA-
S&P
Aa1
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

TD Bank, (NYSE: TD) is one of the few national banks to emerge relatively unscathed from the near collapse of the banking industry and recent recession. TD Bank is also one of the few national banks actively opening new branches in major markets across the eastern United States. TD Bank's solid footing and strong investment grade credit rating make it a very attractive commodity to passive investors in the NNN investment market.

TD Bank is actively growing its network of bank branches and demands highly visible locations in both urban and suburban settings. Generally, sites are 1.00 - 1.5 acres with improvements of 3,500 to 4,800 square feet and are sold as unsubordinated 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 TD Bank ground lease is attractive to investors because they typically have an initial term of 15 to 20 years with up to 5, five year renewal options. In addition, the TD Bank ground lease provides rent increases of 10-15% every five years.
 

Pros

Cons

  • Strong Global Credit Tenant
  • High Visibility Locations
  • Long absolute NNN leases
  • 10%+ Rental increases
  • High initial rental rate
  • The tenant owns the building
  • Ground Leases provide little to no depreciation
  • Lower Cap rates
Tenant Description

TD Bank is one of the 15 largest commercial banks in the U.S., with more than 23,000 Employees and deep roots in the community dating back to 1852. TD Bank offers a broad array of retail, small business and commercial banking products and services to more than 6.5 million customers through its extensive network of more than 1,000 retail locations throughout the Northeast, Mid-Atlantic, Florida and Metro D.C markets. In addition to banking products, TD Bank and its subsidiaries provide clients with comprehensive wealth management services through TD Wealth Management, and insurance products and services through TD Insurance, Inc., one of the largest insurance agencies in the Northeast.

TD Bank is a member of TD Bank Financial Group of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker: TD. TD Bank "America's Most Convenient Bank®", has proudly provided unparalleled convenience and customer service for more than 150 years. The company first opened its doors as Portland Savings Bank in Portland, Maine, in 1852, and later grew through a series of mergers and became Peoples Heritage Bank in 1983. In 2000, Peoples Heritage Bank, through several acquisitions, expanded deeper into New England and took the name Banknorth. In 2004, Banknorth caught the eye of TD Bank Financial Group. TD Bank Financial Group soon became Banknorth's majority shareholder and the company became known as TD Banknorth. On March 31, 2008, TD Bank Financial Group acquired Cherry Hill, New Jersey based Commerce Bank with a strong presence in metro New York, Philadelphia, Washington D.C. and South Florida. The acquired entities were rebranded as TD Bank, America's Most Convenient Bank in September 2009, completing the merger of the companies and uniting them under the TD Bank brand name.


TD BANK TREND
CAP Rate

2014 avg: 4.93%

2015 avg: 5.46%

RECENT SALES

Washington, DC

$4,300,000 | 7.01%

Pompano Beach, FL

$3,600,000 | 6.70%

MORE INFO
www.td.com
Google Finance: TD
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