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  BankUnited


Average Property & Lease

Average Sale Price$5,802,024
CAP Rate (12mo avg with 10+ lease term)4.10%
NOI$237,883
$/Square Foot$1,200 - $1,600
Building Size2,500 - 5,000 sf
Lot Size0.50 - 1.00 acres
Lease Term10 - 20 Years
Escalations10% Every 5 Years
CREDIT RATING
N/A
S&P
Ba1
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

While all banks were significantly challenged during the recent recession, BankUnited was purchased by a large investor group with a significant capital infusion, creating a new, stable platform from which to grow. Having expanded from their Miami, FL headquarters throughout Florida, they are currently working to penetrate the New York City metro area to better serve their large client base with dealings in both markets.

Their expansion and continued growth has been a testament to their creative founding. Many of the larger institutions expanding in Florida at the same time as BankUnited were willing to sign long term ground leases with rents exceeding $200k-$300k annually, requiring the bank to then build and pay for all of the physical improvements, often times costing in excess of an additional $2M. Conversely, BankUnited took a more conservative approach to their expansion; renovating and redeveloping old banks, QSRs, and restaurant locations, minimizing their occupancy cost while maximizing their visibility and accessibility to accommodate today's banking customer. This is important to the net lease investor as it adds a layer of protection through lower rents and $/sf costs on average for a BankUnited site versus their peer group.

Pros

Cons

  • Leases afford rental increases throughout the primary term
  • Investment grade tenant, rated Baa3 by Moody's (Equivalent to S&P:BBB-)
  • Many locations are occupied as fee simple leases, allowing for depreciation versus the preferred ground lease scenario of most other bank brands
  • Retail banking industry outlook on necessity of physical locations is evolving
  • When located as a part of a shopping center, some use restrictions may apply
  • Some Leases require landlord obligations to roof and structure
Tenant Description

BankUnited was established on May 21, 2009, when a group of investors led by John A. Kanas acquired the assets and most of the liabilities of the former BankUnited, FSB from the Federal Deposit Insurance Corporation. The group recapitalized BankUnited with a $900 million investment, making it one of the most well capitalized financial institutions in the country.

On January 28, 2011, BankUnited Inc. began trading on the New York Stock Exchange under the symbol BKU. The initial public offering was the largest for a U.S. bank in history.

BankUnited has more than $12 billion in assets and more than 95 branch locations and focuses on the financial needs of growing companies and their executives, consumers and commercial and middle-market businesses in Florida's thriving coastal regions. The bank offers a broad range of online services, treasury management tools for businesses and traditional depository and lending products.

The latest information before the bankruptcy credited BankUnited with about 2.1% of all deposits in Florida, ranking it 8th in the state. Bank United, has 90+ locations, $1.47 billion in Net Worth and over $63 million in net income.


BANKUNITED TREND
CAP Rate

2013 avg: 5.1%

2014 avg: 5.09%

RECENT SALES

Lake Mary, FL

$3,223,140 | 5.75%

Miami Beach, FL

$8,150,000 | 4.16%

MORE INFO
www.bankunited.com
Google Finance: BKU
Google News: BKU