SNL Sells Regions Bank in Prominent Area of Houston, TX
James Anderson Facilitates Sale Above List Price After Competitive Bidding Process
July 11, 2024 — Secure Net Lease, recognized for its expertise in investment real estate, orchestrated the closing of a Regions Bank in the highly sought-after Heights Area of Houston, Texas. This listing was sold for over its initial list price, due to a competitive bidding process.
SNL’s James Anderson effectively closed the all-cash transaction with Regions Bank, facilitated by a Texas-based broker. The property quickly attracted multiple all-cash offers over the listing price, but the tenant ended up bringing in the best offer.
“The property, largely a covered land play, was encumbered by a ground lease with Regions Bank, which was considered unfavorable. Despite this, the land’s value, spanning 1.84 acres, attracted attention quickly. We marketed the property, and within a week, we received about five all-cash offers. We conducted a best and final, and three groups offered above our list price. We selected the most logical and probable buyer to close the deal” Anderson said.
This 5,000 square-foot bank, located on 1.84 acres, is situated within the coveted Heights Area of Houston and benefits from the 3-mile population of over 180,975 that have an average household income of over $168,315. This branch of Regions Bank boasts exceptionally strong deposits, exceeding $100 million. Among the 27 Regions branches in Harris County, it ranks fourth in deposit volume.
“Regions Bank exercised their ROFR despite planning to go dark at several locations. Regions ended up being the best buyer because they had the lease in place. The deal was smooth, although we had to conduct a phase two environmental assessment due to an old C-store from the 80s. Fortunately, the results came back clean. Ultimately, the competitive bidding process elevated the final sale price above the initial list price. Although Regions exercised their offer, the bidding war drove up the price, and they paid the maximum amount possible,” the agent concluded.
Despite the challenges posed by the ground lease, buyers recognized the 1.84-acre property’s land and location as highly valuable. Within a week of marketing, it attracted significant interest, generating five offers and ultimately sparking a bidding war.
Regions Financial Corporation is a bank holding company headquartered in Birmingham, Alabama. The company provides retail banking and commercial banking, trust stock brokerage, and mortgage services. Regions serves customers across the South, Midwest, and Texas. Regions Bank is ranked 434th on the Fortune 500 List and is on the list of the largest banks in the U.S. Their revenue for 2023 was $9.153 billion and they hold over $155 billion in assets.
About Secure Net Lease
Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.
Ultimately, the competitive bidding process elevated the final sale price above the initial list price.
