HOBBY LOBBY
PALMDALE, CA
$10,087,000
AT A GLANCE
Strong national tenants, Hobby Lobby - 700 locations in 40 states
New 15 year lease term with newer 2017 construction
Part of power center co-anchored by WalMart, Sam’s Club, and Kohls
CHALLENGES
Secondary trade area with big box retailer
Larger price point with rising interest rates for financing with conduit lender
Non-completed CC&R’s, complete lease amendment for buyer, insurance issues
MARKETING STRATEGY
Mass market buyer exposure through Faris Lee national marketing platform
- Mass market buyer exposure through Faris Lee national marketing platform
- Targeted California-based 1031 exchange buyers
RESULTS
- Secured and closed with a California 1031 exchange buyer from Orange County
Low cap rate (6.25% for Hobby Lobby versus national comparable sales
Provided advisory expertise to assist buyer in facilitating the transaction