The Bancorp building sale falling through ‘concerning,’ says Keefe Bruyette

Keefe Bruyette says The Bancorp’s (TBBK) sale of the Aubrey building falling through is “concerning and raises questions” about the collateral value of the property. The buyer is walking away from $3M of earnest money and has up to $2.4M of sunk costs from required rehabilitation investments, the analyst tells investors in a research note. Keefe’s investigation indicates that the ultimate purchaser was a revenue-less biotech company that possibly couldn’t obtain reasonable financing terms. It has an Outperform rating on The Bancorp with a $70 price target