DALLAS, Texas – (BUSINESS WIRE)— NADG NNN REIT, a private real estate investment trust managed by an affiliate of North American Development Group, announced that it has successfully issued $264 million of 5-year fixed rate notes at a yield of 3.39%.   The notes received an investment grade rating of “A” by both Standard & Poor’s Ratings Services (S&P) and Kroll Bond Rating Agency. The offering was approximately 5.7x oversubscribed, with $1.5 billion of aggregate demand from a high-quality, diverse institutional investor base.  The proceeds from the notes were used to fund the acquisition of 30 additional properties and to provide additional capital for future acquisitions.   The notes represent the inaugural bond issuance for the NADG NNN REIT.   Barclays Capital Inc. served as the sole structuring advisor and bookrunning manager on the transaction.

“This transaction represents a significant milestone for the NADG NNN REIT,” said Stephen Preston, its Founder and Chairman.  “The exceptionally robust reception from the institutional investor community serves as a strong validation of the REIT’s niche acquisition strategy and diversified national portfolio of high-quality outparcel properties leased to household name, service industry tenants.”

The NADG NNN REIT’s portfolio now includes over 150 properties, diversified across 30 states and 45 metro areas.  The REIT’s enterprise value exceeds $500 million, with over $250 million of equity.

“2020 is shaping up to be a year of continued vibrant growth for the REIT,” said Randall Starr, its President & CEO.  “The closing of this transaction, coupled with our growing equity commitments, provides a substantial capital war chest to take advantage of attractive acquisition opportunities.”

Founded in 2016, the REIT was formed to assemble a national portfolio of hand-selected outparcel properties. Outparcels are freestanding buildings, situated directly on busy roads with the best access and visibility, triple net leased (NNN) to service oriented, internet proof, household name tenants, under long-term lease agreements.

The notes are not registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. The notes may only be offered and sold in the United States in accordance with Rule 144A under the Securities Act. This press release does not constitute an offer to sell or the solicitation of any offer to buy nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful under the laws of such jurisdiction.

About North American Development Group

Founded in 1977, North American Development Group (“NADG”) has been active in the development, acquisition, redevelopment and management of over 250 shopping centers, mixed-use and residential developments comprising well over 35 million square feet across the United States and Canada.  Currently, NADG has over $5 billion of AUM and owns over 28 million square feet of shopping center, mixed-use and residential space in the United States and Canada.

NADG NNN Contacts

Stephen Preston, [email protected]

Randall Starr, [email protected]

Website: www.nadgnnn.com