Cheryl Pestor with Sperry Van Ness in Pasadena, CA, writes, "The upside is that banks are usually on great signalized corners and have great parking ratios, thus attracting national retail and food tenants such as Starbucks, Coffee Bean, Baja Fresh, etc. ... In today's market in Southern California you would be able to sell this leased investment in the average range of a 7.0% to 7.5% cap rate."

Jack MacNeish with Bartram & Cochran in Philadelphia writes a cautionary note. "Bank buildings are over-developed buildings, not easily reused without major overhaul except by other banks. Don't see many ex-bank branches reused other than for 'funky' or second tier credit uses."

Paul Ruff of Triumph Real Estate, Englewood, CO, speculates that "the transaction was valued on the basis of the lease-back and that the vacant space is a throw-in. If it never leases, I doubt American Financial would really care. On the other hand, every square foot they do manage to lease is likely just gravy."

Mike McCormac with Grubb & Ellis in San Francisco writes from personal experience. "I was buying and recycling bank branches 20 years ago! I still own an old branch on Geary Blvd. that was converted to two retail stores. I still have my original tenant in one of the spaces."

Stephen Bronetto with Mayhew Realty in Thornhill, Ontario, Canada, writes from north of the border. "I would take the chance that 2004 is a turn-around year and do the buying now as the right time to acquire space while the costs are low. ... How many bank locations do you think are really that bad? Not many, because the banks have done the research prior to opening a location. So why not capitalize on this accordingly?"

--Peter Pike