Atlantic Union Bankshares in Richmond, Va., has sold 27 properties in Virginia as part of a sale-leaseback transaction.
The $20.6 billion-asset company disclosed in a regulatory filing that it sold 25 branches, a drive through and a parking lot to an affiliate of Blue Owl Capital for $45.8 million.
Atlantic Union agreed to lease the properties for an initial 17-year period, with renewal options. The rent can increase by 1.5% annually during the initial period and by 2% in renewal years.
The transactions resulted in a $27.9 million pretax gain. Pretax rent expense is expected to be $3.7 million in the first full year, though it will largely be partially offset by the elimination of depreciation expense and reinvestment of the proceeds from the sale.
Atlantic Union recently agreed to buy American National Bankshares in Danville, Va.