IRVINE, Calif. - (July 13, 2021) - Faris Lee Investments, a leading retail advisory, and investment sales firm has completed the 6.14 million sale of a 100% occupied, 14,164 SF strip center located in Escondido (San Diego County), California, a densely populated area.
The Shops at Trafalgar Square (the “Property”) resides within an ALDI (NAP) anchored center, featuring an IHOP (NAP) pad located on the East Valley Parkway corridor providing access to and from the I-5 Freeway and Highway 78.
The Property is comprised of a mix of essential local/regional, internet-resistant tenants, providing investors security in the real estate, tenant lineup, and long-term cash flow. All of the tenants within the Property signed 5-10 year leases during the pandemic, proving the strength of the center and location.
To maximize value for the Seller, Matt Brooks and Joe Chichester, leaders of Faris Lee Investment’s Mid-Market team, created a break-up sale strategy for the entire center’s initial owner, which the subsequent buyer implemented with the guidance of the team.
Faris Lee sold the entirety of the center in 2018 as a value-add opportunity and referred the capital market advisor to secure financing. At the time, the property was in the process of being parcelized into three separate parcels, a process in which, Faris Lee’s team got involved by procuring the engineers.
After the initial sale, the subsequent strategy consisted of a break-up strategy with the sale of ALDI, IHOP, and finally, the Shops at Trafalgar Square.
The Team successfully closed the ALDI and IHOP at record breaking cap rates (4.03% and 4.38%, respectively) in 2020, and again set another cap rate record with the sale of the Shops at Trafalgar Square, which is the lowest cap rate recorded for a strip center in San Diego County in 2021 (5.60%).
For the Shops at Trafalgar Square, Faris Lee targeted 1031 exchange investors and reached out to existing strip center investors in Faris Lee’s proprietary Mid-Market database. Due to a lack of supply of well-located strip, 100% occupied centers during the pandemic, the team received multiple offers within the first 30 days of marketing the property and closed at 99% of the contract price.
“Coming out of the pandemic with a multi-tenant retail center, we engaged our capital markets partner early and often in order to manage any financing concerns, and we continued to leverage the success of the record breaking sales of the ALDI and IHOP portions of the center in order to successfully close the Shops at Trafalgar Square at the lowest cap rate for a strip center in San Diego County for 2021. The completion of the fourth and final transaction within the business plan was a testament to the teamwork between our capital market’s partner, the leasing team we put in place, the engineer for the parcelization, a fully engaged Seller, and the comprehensive Faris Lee team.” Said Matt Brooks
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About Faris Lee Investments
Faris Lee Investments is a national 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. Through its recent strategic partnership with X-Team Retail Advisors, a nationwide affiliation of seasoned retail leasing experts, Faris Lee offers a fully integrated platform with disciplined expertise in landlord leasing, tenant representation, capital markets, and investment sales to maximize value for clients. For more information, visit www.farislee.com.
Published by Shopping Center Business: https://shoppingcenterbusiness.com/faris-lee-arranges-6-1-million-sale-of-retail-strip-completes-break-up-strategy-for-aldi-anchored-center-in-metro-san-diego/