SouthState to sell 170 branches to Blue Owl for $475 million, then lease them back
On January 8, 2025, SouthState Bank agreed to sell about 170 branch properties in Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia to entities affiliated with Blue Owl Real Estate Capital for about $475 million in cash, and to lease them back under 15-year triple net leases. The company expects a pre-tax gain of about $225 million, but also about $40 million in first-year GAAP rent expense, so the deal trades a one-time gain for ongoing occupancy costs, and the final numbers could change during due diligence.
Key points
- Sale of about 170 branches to Blue Owl affiliates for about $475 million cash, expected to close in the first quarter of 2025, subject to Blue Owl's due diligence.
- Expected pre-tax gain of about $225 million after transaction-related expenses.
- First-year rent of about $36 million pretax; GAAP rent expense of about $40 million, partly offset by about $8 million less depreciation.
- Lease terms: 15-year initial term, three 5-year renewal options, 2% annual rent escalation; the bank will not close any branches or exit any markets.
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 12:56 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on January 13, 2025.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.