IRVINE, Calif. – Faris Lee Investments, a leading retail advisory and brokerage services firm, has completed the $10 million pre-sale of a new construction 46,000-square-foot retail building that is recently fully occupied by TJ Maxx and HomeGoods. The 3.88-acre property, located at 2314 Remi Drive in Melbourne (Viera), FL has a new 10-year corporate guaranteed lease by The TJX Companies, Inc.
Matthew Mousavi and Patrick Luther of Faris Lee Investments represented the all-cash buyer who is a private investor based in south Florida. Mousavi and Luther also represented the seller, a Florida-based developer. The closing cap rate on the asset was 6.2 percent.
“This transaction involved a pre-sale strategy,” said Mousavi, senior managing director with Faris Lee Investments. “Prior to the property completing construction, we procured more than 15 offers and selected a private, non-1031 exchange and all-cash investor who went non-contingent prior to the tenant opening its doors. Escrow closed immediately following the grand opening. The pricing achieved was extremely aggressive for a 10-year double net lease to TJ Maxx/HomeGoods.”
Mousavi added: “We targeted both the institutional and private buyers, ultimately exceeding the pricing that the institutional investors were offering by over 75 basis points by selecting a private buyer.”
The TJ Maxx/HomeGoods transaction represented the second transaction of a multi-phase break-up strategy employed by Faris Lee on behalf of the developer to offer the various parcels within the project to a wider buyer pool at more aggressive pricing levels. In 2013, Faris Lee completed a $6.1 million sale of a property occupied by Total Wine & More within the same center, and Faris Lee is currently under contract on other portions of the project.
The property is ideally positioned within a master-planned community that is situated just outside of Orlando. It is located at the southeast corner of Lake Andrew Dr. and Harnett Dr. It is adjacent to the 525,000-square-foot Avenue Viera shopping center, which includes Sports Authority, Kohl’s and Michaels, and is near the 336,000-square-foot Shoppes at Lake Andres shopping center which is anchored by WalMart Supercenter. Nearby retailers include Target, Petco, Pier One, Hobby Lobby, Ross Dress for Less, Old Navy, and others.