Atlanta, GA and Talladega, AL – July 17, 2024. MountainSeed Real Estate Services, LLC (“MountainSeed”), a Georgia limited liability company, has successfully completed a sale-leaseback transaction with First Bank of Alabama (“the Bank”), the wholly-owned subsidiary of Firstbanc of Alabama, Inc.
Effective July 10, 2024, under the terms of this transaction, First Bank of Alabama sold four properties, which it owned and operated as bank office locations for an aggregate purchase price of approximately $7.8 million, inclusive of customary closing adjustments. These properties are located in the immediate vicinity of Talladega, Alabama, where the Bank is headquartered.
Concurrently, First Bank of Alabama entered into a master lease agreement (the “Lease Agreement”), under which the Bank will lease all four properties. The Lease Agreement has an initial term of 15 years, with an option for the Bank to extend the lease for an additional 15-year term. The obligations of First Bank of Alabama under the Lease Agreement are guaranteed by Firstbanc of Alabama, Inc.. As part of this sale-leaseback transaction, the Bank will continue its operations without closing any offices or exiting any markets, ensuring seamless service to its clients and maintaining its presence in the local community.
MountainSeed’s continued commitment to conducting sale leaseback transactions further establishes the company as a reliable resource for community Banks and Credit Unions. It provides First Bank of Alabama with enhanced financial flexibility in the current economic environment.
“It was a true pleasure working with the entire executive team at First Bank of Alabama, they are a first class organization. We are excited to close on this portfolio of branches and this transaction continues to increase our momentum in the Southeast” said Patrick Roberts, Chief Revenue Officer at MountainSeed.
“MountainSeed has been a great partner to the Bank for many years and they were first to the table with this sale/leaseback that has been utilized around the country by many institutions, big and small. For us, it was an easy choice to turn a non-earning asset into an earning asset when liquidity is key in the eyes of the regulatory agencies,” noted Chad Jones, President & Chief Executive Officer at First Bank of Alabama.
About MountainSeed: MountainSeed acts as a beacon of trust and innovation in the real estate and banking industries, serving as a partner to over 600 community banks and credit unions across 50 states. MountainSeed has become the most active company in conducting sale leaseback transactions with community Banks and Credit Unions. In addition, the company processes over $5 Billion commercial real estate transactions monthly, offering expertise to clients in the commercial real estate and lending industries. Their tech-enabled business provides clients access to a marketplace of products, services, and real estate data.
About First Bank of Alabama: First Bank of Alabama is the wholly-owned subsidiary of Firstbanc of Alabama, Inc. and an FDIC-insured commercial bank that has been operating for more than 176 years in Talladega, Alabama and the surrounding area. Today, it remains dedicated to the very same principles it was founded on when Major James Isbell opened the bank in 1848.
For further information or inquiries, please contact:
- Patrick Roberts, Chief Revenue Officer, MountainSeed
– Email: [email protected]
– Phone: (404) 710-9642
- Chad Jones, President & Chief Executive Officer, First Bank of Alabama
– Email: [email protected]
– Phone: (256) 322-0866
Forward-Looking Statements
This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include changes in economic conditions, changes in market interest rates, among other factors.