REIT Purchases Bank Pad-Site Building for Redevelopment
A Bank of America branch in the Houston area has been purchased by a REIT. Photo credit: Mabry Campbell.
HOUSTON – NADG NNN REIT, an investment company specializing in free‑standing retail buildings and outparcels in shopping centers, has acquired a Bank of America branch located on the Katy Freeway in Houston.
Holliday Fenoglio Fowler (HFF) represented the seller in the sale of the 7,568‑square‑foot, single‑tenant retail building leased to Bank of America’s Hedwig Village branch.
HFF marketed the property on behalf of the seller, Hedwig Redevelopment Partners, Ltd., a joint venture sponsored by local firm Fuller Realty Partners, LLC.
North American Development Group’s NADG NNN REIT purchased the asset for an undisclosed price. Formed in 2016, the REIT focuses exclusively on acquiring outparcel pads nationwide. To date it has acquired or secured control of roughly 50 outparcels and plans to continue expanding by targeting five to ten outparcel acquisitions per month.
The property is situated at 8773 Katy Freeway in the Memorial Villages area. Within a one‑mile radius of this location, the average household income is approximately $250,121 and the average home value is about $967,408. Bank of America has occupied the branch since 1994 and currently has nine years remaining on its lease. By deposit volume, this branch ranks ninth among Bank of America locations in the Houston market.
HFF’s investment advisory team on the transaction included Ryan West, Charlie Strauss and Johnny Kight.
