Fontana, CA – Faris Lee Investments has completed the $3.15 million sale of a newly developed, 2,500-square-foot single-tenant, triple net-leased retail property that is occupied by Starbucks Coffee with a drive-thru. The property is located on Slover Avenue in Fontana, Calif.
Managing Director Christopher DePierro and Senior Managing Director Jeff Conover with Faris Lee Investments represented the seller, Southern California-based Puente Hills Power Center, LLC. The buyer, New York-based Fata Organization, LLC, was represented by Director Matt Brooks of Faris Lee Investments.
“Newly constructed single-tenant properties in prime locations are opportunities investors seek out, however, they are difficult to find especially in Southern California. Furthermore, after a number of competitive offers, Faris Lee sourced an all-cash, 1031 exchange buyer through the company’s proprietary 1031 national database,” said DePierro.
“The Faris Lee team successfully collaborated to meet the buyer’s urgent 1031 exchange needs by managing a two-day escrow period,” said Brooks.
Conover noted that the property sold at a cap rate of 4.1 percent and a price per square foot of $1,270. The sale represents the lowest cap rate for a freestanding Starbucks sold in Riverside/San Bernardino Counties with a price point over $2.75 million.
The asset is part of Palm Court Center, a 630,000-square-foot power center anchored by Super Target, Ross, TJ Maxx and 24 Hour Fitness. The center also includes Kaiser Permanente which employs more than 500 people and draws hundreds of daily visitors. Starbucks is located on an outparcel to the center, and enjoys great visibility and direct access from Slover Avenue.
About Faris Lee Investments: Faris Lee Investments is a leading retail advisory and investment sales firm. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee’s senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, visit www.farislee.com.