CORAL GABLES, Fla., Dec. 15, 2021 (GLOBE NEWSWIRE) — Amerant Bancorp Inc. (NASDAQ: AMTB) today announced that its subsidiary, 220 Alhambra Properties LLC, completed the sale of its Coral Gables, FL, headquarters to FNLI Audax LLC in an all-cash transaction at the previously disclosed price of $135 million.
The property located at 220 Alhambra Circle, Coral Gables, Florida 33134, includes approximately 177,000 square feet in office space, 134,000 square feet in parking space, and serves as the corporate headquarters for Amerant Bancorp Inc. As of September 30, 2021, the net carrying value of the property was $71.3 million. In the fourth quarter of 2021, the Company expects to record a pre-tax gain of approximately $62.4 million, net of approximately $2.6 million of transaction costs, and the resulting gain on the sale to be taxable at the applicable all-in tax rate. The Company expects tangible book value per common share to increase by approximately $1.22 per common share, as a result of this event.
As part of this transaction, 220 Alhambra has entered into an 18-year triple net leaseback agreement at an approximate rate of $43 per square foot during the first year. The Company expects to record a right-of-use asset and lease liability of $91.4 million, in connection with this lease, as of December 31, 2021.
“The current market conditions, combined with the terms of the leaseback agreement, make this a very positive move for the Company both in the near and long term,” said Jerry Plush, vice chairman & CEO of Amerant. “We previously stated that one of our goals was to reduce the level of fixed assets on our balance sheet, and this transaction is a significant step towards achieving that.”
Plush added, “We fully intend to maintain our corporate headquarters in the city of Coral Gables and continue to support the surrounding community for many years to come.”
STREAM Capital Partners was the exclusive real estate advisor to Amerant on this transaction.
About Amerant Bancorp Inc. (NASDAQ: AMTB)
Amerant Bancorp Inc. is a bank holding company headquartered in Coral Gables, Florida since 1979. The Company operates through its main subsidiary, Amerant Bank, N.A. (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., Elant Bank and Trust Ltd., and Amerant Mortgage, LLC. The Company provides individuals and businesses in the U.S., as well as select international clients, with deposit, credit and wealth management services. The Bank, which has operated for over 40 years, is the second largest community bank headquartered in Florida. The Bank operates 24 banking centers – 17 in South Florida and 7 in Houston, Texas. For more information, visit investor.amerantbank.com.
