IRVINE, Calif., – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $24.35 million sale of a 139,535-square-foot, single-tenant, NNN-leased retail property fully occupied by Lowe’s Home Improvement in Shippensburg, PA. This sale marks the highest price paid for a Lowe’s-occupied asset over the past two years, according to CoStar data.
Jeff Conover, senior managing director, and Patrick Luther, managing director, with Faris Lee Investments represented the seller, Bountiful, a Utah-based Excel Trust. The buyer, New York, NY-based ARC Real Estate Group, LLC was represented by Marcus & Millichap. The closing cap rate was 6 percent.
Lowe’s is on a long-term lease with 18 years remaining on its 22-year initial lease term along with set rental increases and options to renew.
“Our strategy was to aggressively market this asset to both private capital and institutional investors and highlight the strength of the credit tenant as well as its long-term lease, creating long-term security and stability for the investor,” said Conover. “It attracted an impressive amount of interest and six offers. We ultimately selected ARC Real Estate Group, LLC, a private, New York-based family office, as the ideal buyer for this asset.”
Luther added, “Despite the credit and lease term, the transaction involved structuring holdbacks for deferred maintenance, adding a layer of challenge and complexity to the sale.”
Built in 2008 and situated on 20.94 acres, the property is located at 250 S. Conestoga Dr. It benefits from being adjacent to a Walmart Supercenter and across from a Big Kmart-anchored center, situated directly between Hwy 174 and Hwy 11. In addition, Lowe’s is the only major home improvement store within 15 miles, and services over 119,000 people within the local market area.
Shippensburg is an attractive college town that is home to Shippensburg University, located directly on the line between Franklin and Cumberland counties. The nearby Pennsylvania Turnpike and I-81, are short driving distances from many metropolitan centers, including Philadelphia, Pittsburgh, Baltimore, Washington D.C., and New York City.
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.