BB&T Bank TENANT OVERVIEW
Last Updated: September 9, 2016
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
BB&T is one of the largest financial services holding companies in the US. As of December 31, 2016, holds $219.3 billion in assets and had a market capitalization of $38.1 billion.
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 Winston-Salem, NC, the company operates 2,196 financial centers 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, BB&T is consistently recognized for outstanding client satisfaction by the US Small Business Administration, Greenwich Associates and others. BB&T also has been named one of the World's Strongest Banks by Bloomberg Markets Magazine, one of the top three in the US and in the top 15 globally.
Average Cap Rate
4.87%
12 mo avg with 10+ yr lease term
Average Property & Lease
| Average Sale Price |
$3,208,352 |
| NOI |
$156,483 |
| $/Square Foot |
$650 - $850 |
| Building SF |
7,000 |
| Lot Size |
0.5 - 2.0 Acres |
| Lease Term |
15 Years |
| Escalations |
1 - 2% Annually |
| Stock Symbol |
BBT |
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
| Roswell, GA |
5.35% |
| Front Royal, VA |
4.84% |
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