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An affiliate of Red Pine Capital Partners, LLC sponsored a tenant in common acquisition of the largest branch of First Niagara Bank in Pennsylvania. The free standing 15,000 square foot building contains corporate offices on five floors as well as traditional teller stations on the ground floor. Located on the corner of a signaled intersection, the property has been operated as a bank branch for nearly 40 years and currently has a deposit base in excess of $100,000,000. The branch is encumbered by a ten year, triple net lease with First Niagara.
"Red Pine seeks to exploit the disconnect between the general perception of weakness in regional banking credits and the true strength of the balance sheets of many of these companies. We have several similar transactions in our pipeline," said Michael Federman, a Red Pine principal. "First Niagara showed great confidence in its own credit by financing the acquisition of the property where the bank is the sole tenant and only source of cash flow. Our analyst's reports also reflect that First Niagara insiders are aggressively buying back shares of the company," he added.
On the date of the Red Pine closing, First Niagara announced that it will combine with New Alliance Bancshares to create a Top-25 U.S. bank with more than $29 billion in assets, $18 billion in deposits and 340 branches across Connecticut, Massachusetts, Pennsylvania and upstate New York.
About Red Pine Capital Partners, LLC
Red Pine Capital Partners, LLC (redpinecap.com) is a boutique equity and real estate investment firm with a focus on investments in middle-market, consumer-related businesses and real estate projects. Red Pine and its affiliated companies seek control positions in businesses where long-term capital appreciation can be achieved through the combination of creative management, new strategies and quality corporate assets as well as opportunistic investments in real estate requiring the repositioning of core real estate assets. Red Pine is a sponsor of tenant-in-common investments, an investment advisor and asset manager for a diverse pool of institutional and individual investors. Red Pine also structures and syndicates special situation bridge loans and interim credit facilities, mezzanine loans and preferred equity financing in connection with real estate assets.
About First Niagara Bank
First Niagara Financial Group, Inc. operates as the holding company for First Niagara Bank that provides retail and commercial banking, and other financial services to individuals, families, and businesses. It offers retail deposit accounts, which consist of savings, negotiable order of withdrawal, checking, money market, and certificate of deposit accounts, as well as provides business savings and checking, money market, cash management accounts, and municipal deposit accounts. The company’s loan portfolio includes commercial real estate and multi-family loans; commercial business loans comprising term loans, letters of credit, and lines-of-credit; residential real estate loans; home equity loans; consumer loans consisting of indirect mobile home loan, and personal secured and unsecured loans; and specialized loans, including commercial leases and loans to finance insurance premium. First Niagara Financial Group also provides wealth management services that manage client funds utilizing various third party investment vehicles comprising stocks, bonds, mutual funds, and annuities, as well as other investment products, such as individual retirement accounts, education savings plans, and retirement plans.The company was founded in 1870 and is based in Buffalo, New York.
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