Colony Bankcorp in Fitzgerald, Ga., has agreed to sell three Georgia branches to MountainSeed Real Estate Services for $19.9 million.
The $3.7 billion-asset Colony disclosed in a regulatory filing that it will lease the properties for an initial 15-year term. Two properties have already sold for $16.2 million, while a third is set to sell for $3.7 million.
The initial rent for the sold branches is $1.3 million, which will increase to nearly $1.7 million when the third property changes hands. The rent has 2% annual compounded increases starting in the second year.
Colony said it expects to use the gains from the sales to offset “a planned repositioning of the bank’s investment securities portfolio.”