HOUSTON—Two single-tenant retail buildings have sold in the metro, signaling a continued demand due to population growth and strong fundamentals. The larger of the two buildings was a 7,568-square-foot building leased to Bank of America's Hedwig Village branch in the Memorial Villages area.
The seller was Hedwig Redevelopment Partners Ltd., which is a joint venture sponsored by locally based Fuller Realty Partners LLC. The North American Development Group NNN REIT purchased the property for an undisclosed amount.
Situated at 8773 Katy Frwy. in the western part of the city, the building is centrally located within this collection of upscale, affluent residential communities that in addition to Hedwig Village includes Spring Valley, Piney Point, Bunker Hill and Hunters Creek Village. The average household income within a 1-mile radius of this Bank of America retail location is $250,121 along with an average home value of $967,408.
This Bank of America branch has been a tenant of the property since 1994 and has nine years remaining on its lease. The branch is ranked ninth in Houston for all Bank of America locations measured in deposits.
HFF's investment advisory team representing the seller included senior managing director Ryan West and real estate analysts Charlie Strauss and Johnny Kight.
The NADG NNN REIT was formed in 2016 and exclusively acquires national outparcel pads. Approximately 50 outparcels have been acquired/under control to date, and the REIT has plans to acquire between five and 10 outparcels per month on a go-forward basis.
The other building was a 5,622-square-foot single-tenant retail property leased to MedExpress Urgent Care, a subsidiary of United Health Group, in Beaumont, TX. Completed in 2015, the building is leased to MedExpress on an absolute triple-net lease for 10 years with multiple options. This MedExpress Urgent Care center did not have any damage as a result of Hurricane Harvey.
Situated on .79 acres at 3565 College St., the property is visible to more than 27,000 vehicles a day. The property is directly across from an H-E-B grocery store and one block west of Baptist Hospital of Southeast Texas.
Beaumont is a southeast Texas community that is home to 118,296 residents and the fourth busiest US port by tonnage.
HFF's investment advisory team included senior managing director Ryan West, director John Indelli and real estate analyst Charlie Strauss.
MedExpress Urgent Care is a neighborhood healthcare provider that offers a range of services, including urgent care, basic wellness and prevention, and employer health services.
“We had a deep pool of prospective buyers for both Bank of America Hedwig Village and MedExpress,” Indelli tells GlobeSt.com. “Investors are attracted to the Houston metro area's healthy retail fundamentals underpinned by nation-leading population growth and robust employment growth.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
