IRVINE, Calif., February 25, 2020 – Faris Lee Investments, a leading retail advisory, and investment sales firm has completed the $9.21 million sale of two freestanding outparcel shop buildings within the only Walmart anchored center in the city of Fontana, CA. The property totals 34,377 square feet and is located at 17151-17171 W. Foothill Boulevard in Fontana, CA.
Shaun Riley, senior managing director and Nick Miller, Director at Faris Lee Investments represented the seller of the property and sourced a local Los Angeles-based buyer. The transaction had an escrow of 35 days and closed at a 6.00% cap, approximately 50 basis points below what similar centers have traded for in the surrounding area.
“Faris Lee’s marketing strategy was to position the property as a unique value-add investment opportunity in a trade area with significant residential, office, and industrial developments,” said Miller. “The market responded well to the rare opportunity to purchase outparcel shops to Walmart at a prime location within the city.”
“A key factor to the transaction was that Faris Lee was able to show prospective buyers a unique and tailored leasing strategy which will enable a buyer to achieve the inherent upside in a timely manner. The strategy consisted of leasing to additional food users by taking advantage of the demisable units and large parking field.” Said Riley.
Faris Lee marketing targeted Southern California 1031 buyers, private investors, and brokers. Ultimately, Faris Lee identified a 1031 exchange buyer out of Los Angeles who needed to close quickly due to 1031 exchange requirement.
The property was comprised of a strong daily needs tenant line-up, resistant to e-commerce advancements and trends. Fontana Square is positioned within the rapidly growing city of Fontana along the highly trafficked Foothill Boulevard (Route 66), which experiences in excess of 30,800 vehicles per day. The city of Fontana has experienced significant growth of 47% since 2000 and is expected to continue by more than 4% over the next 5 years. Currently, the city has an estimated 10,000 residential units proposed, planned, and underdevelopment within its city limits including Ventana at Duncan Canyon (842+/- units), West Gate (3,240+/- units), and The Renaissance (1,667+/- units). In addition, the in-fill demographics count approximately 379,600 residents with an average household income of over $81,100 with over 72,000 day-time employees within a 5-mile radius.
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 affiliation with X-Team Retail Advisors, a nationwide partnership 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