Blue Owl Acquires Trustmark Corporation's 34-Branch Bank Portfolio in $91.7M Sale-Leaseback Arranged by JLL

CHICAGO — Blue Owl has acquired a 34-branch retail bank portfolio from Trustmark Corporation for $91.7 million in a sale-leaseback transaction arranged by JLL Capital Markets, the firms announced Sept. 17, 2026. The deal covers 222,037 square feet across five Southeastern states and includes a 15-year absolute triple-net master lease under which Trustmark will continue operating all branch locations.

Deal Structure and Lease Terms

The portfolio spans Mississippi, Florida, Tennessee, Alabama and Texas, anchored by Trustmark's core Mississippi footprint and complemented by established branches along Florida's Gulf Coast and in the Memphis, Houston, Montgomery and Huntsville markets. The 34 properties total 222,037 square feet, pricing the portfolio at approximately $413 per square foot.

Under the terms of the transaction, Trustmark will lease back all 34 locations under a 15-year absolute NNN master lease featuring 1.5% annual rent escalations and three five-year renewal options. The initial aggregate annual rent is $6.4 million, implying an initial cap rate of approximately 6.97%. JLL's Corporate Capital Markets and Net Lease team represented Trustmark in the sale.

"Bank branch sale-leasebacks remain one of the most efficient tools available to financial institutions looking to unlock embedded real estate value and redeploy that capital into their core business," said Alex Sharrin, Senior Managing Director at JLL. "The depth of investor demand for this offering reflects the scarcity of investment-grade net lease retail product in today's market and the significant amount of capital targeting long-term, credit-backed income."

Strategic Rationale for Trustmark Corporation

The transaction generates a pre-tax gain of approximately $61.5 million for Trustmark after transaction expenses. Trustmark has paired the real estate sale with a securities portfolio repositioning, selling approximately $629.9 million of lower-yielding securities and reinvesting approximately $628.0 million into higher-yielding securities. The pre-tax loss recognized on that securities transaction offsets the real estate gain, allowing the bank to restructure its balance sheet while managing its tax position.

Trustmark reported record net income of $224.1 million, or $3.70 per share, for full-year 2025, with loans held for investment of $13.7 billion and deposits of $15.5 billion at year-end. The bank has guided to mid-single-digit loan and deposit growth for 2026, with a net interest margin target of approximately 3.8% to 3.85%. Its Common Equity Tier 1 ratio stood at approximately 11.7% and total risk-based capital at approximately 14.4% as of the first quarter of 2026.

Trustmark CEO Duane Dewey said the transaction allows the bank to redeploy capital from passive real estate into income-generating assets. "By working alongside the corporate capital markets team at JLL to structure this transaction, Trustmark has successfully unlocked the embedded value within our physical footprint," Dewey said. "This highly coordinated partnership allows us to seamlessly transition capital out of passive real estate assets and deploy it into high-performing, income-generating securities, thereby optimizing our investment portfolio while maintaining the high level of customer service across our branch network that our customers expect and deserve."

Trustmark said it will not close any branch or exit any markets as part of the transaction, and its products and service offerings will remain unchanged at all 34 locations.

Blue Owl Expands Southeast Bank Branch Holdings

The acquisition expands Blue Owl's Real Assets platform's bank branch portfolio in the Southeast. The firm previously acquired SouthState's 165-branch portfolio in 2025, a transaction also arranged by JLL.

Marc Zahr, Co-President of Blue Owl Capital Inc. and Head of Real Assets, said regional banks are increasingly viewing their balance sheets through a more strategic lens. "Banks today are looking at their balance sheets through a much more strategic lens, and transactions like this demonstrate how institutions can unlock value from their real estate while simultaneously optimizing other parts of the balance sheet," Zahr said. "We believe that combination can be particularly compelling for banks evaluating how to put capital to work more efficiently in today's rate environment."

Blue Owl manages $315 billion in assets under management as of March 31, 2026, investing across credit, real assets and GP strategic capital platforms.

Market Context: Bank Branch Sale-Leasebacks Gain Traction

The Trustmark transaction reflects a broader trend among regional banks using sale-leaseback structures to surface embedded real estate value and redirect capital toward core banking operations. The deal's pricing — at approximately $413 per square foot and a roughly 6.97% initial cap rate — aligns with the premium commanded by drive-thru-heavy, deposit-rich branch sites leased to investment-grade tenants on long-term NNN terms.

Trustmark Corporation (Nasdaq: TRMK) is a financial services company providing banking and financial solutions through offices in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas. Blue Owl (NYSE: OWL) is an asset manager with operations across credit, real assets and GP strategic capital. JLL (NYSE: JLL) is a global commercial real estate services and investment management company with annual revenue of $26.1 billion and operations in over 80 countries.

Sources

JLL Newsroom: JLL advises on sale-leaseback of Trustmark retail bank portfolio