First Midwest Bank Branch Deal Signals Continued Demand For Net-Leased Assets
In a deal that proves the demand for net-leased real estate continues to be strong, Oak Street Real Estate Capital has agreed to buy 55 First Midwest Bank branches in Chicago and Indiana, in a reported $150M sale-leaseback deal.
First Midwest Bank will lease the branches from Oak Street for the next 14 years, according to Crain's. The deal comes as First Midwest works to complete its $365M acquisition of Standard Bancshares.
The portfolio purchase fits with Oak Street CEO and managing partner Marc Zahr's strategy of identifying and targeting assets that are the perfect combination of low risk and high yield. Oak Street has been killing it with the triple net lease game. The acquisition is part of Oak Street's latest investment fund, which raised over $500M in equity from institutional partners. [Crain's]
