BankUnited

Net Lease Advisor Overview

BankUnited has become highly visible in recent years, serving an ever-growing number of customers in different regional markets in the United States. Recently, they’ve been expanding from their headquarters based out of Miami, Florida, all the way up the East Coast of the U.S. to the NYC tri-state region.

Noting that many banking corporations were adversely affected from the past recession, BankUnited was acquired by a sizeable investment entity recently, then infused with new capital for growth. However, this isn’t the only reason responsible for consistent growth achievements.

BankUnited

At the time of their formation, there were many sizeable organizations in the process of expansion throughout Florida. This resulted in many more ground lease signings that were long term, with average rental revenues grossing in the range of $200,000 to $300,000 per annum.

This cause and effect had required banks to both build and foot the bill for property costs and upgrades, and many times adding an extra two million dollars average in a deal. Knowing this, BankUnited decided to be a bit more creative, taking advantage of minimalist opportunities to leverage operational growth.

From repurposing and updating older bank structures, QSRs, even restaurants, they wisely incorporated modern strategies in order to create more traffic and better access to physical properties. As for protecting net lease investments, a hedge of security had been formed in this way. It allowed for decreased rent costs per square foot on any given BankUnited location when compared against the competition.

Pros

  • Fee Simple leasing with depreciation vs. typical bank ground leasing
  • Tenants considered investor grade with Baa3 Moody rating (S&P: BBB- equivalence)
  • Affordable rent escalations through initial lease terms

Cons

  • Leasing often necessitates owner responsibilities for roofing and building(s)
  • Regulations and restrictions may be applicable for shopping malls and centers
  • Questions of necessity for building locations with respect to banking sector

Tenant Description

With over twelve billion dollars in holdings with 95 different branches, BankUnited continues their focus on financial growth and catering to the needs of a broad range of clients. Such companies include commercial and mid-market corporations to consumer businesses, a majority of which are located in Florida with currently over ninety separate properties in operation.

Founded in 2009 by John A. Kanas alongside a large group of investors, BankUnited was acquired from an earlier entity known as BankUnited, FSB through the FDIC. With an undertaking of approximately 900 million dollars, the entity was replenished to become one of the strongest financial institutions present in the United States. Prior to bankruptcy, they held over two percent of all deposits in the state of Florida, with a net income of 63 million and sitting on close to $1.5 billion dollars in net worth.