Irvine, CA – (Jan 13, 2021) – Faris Lee Investments arranged the $2.47M sale of a drive-thru Taco Bell in the city of Folsom, a burgeoning and affluent community within the Sacramento-MSA. This freestanding property has proven operational success since its development in 2007, and provided a rare, fee simple acquisition opportunity for the trade area.
Tyler Strauss and Jeff Conover located a private family-partnership based just south of metropolitan San Francisco looking to grow their fast-food centric portfolio. Faris Lee Investment represented both the buyer and seller in this transaction.
This property is positioned within the Folsom Gateway Shopping Center, as a direct outparcel to a Sam’s Club and also shadowed by two Marriott-branded hotels. The Palladio Shopping Center, an outdoor/upscale shopping mall, is just across the street while retail giants like Costco, REI, Whole Foods, Best Buy, Staples, and BevMo are all within walking distance of the property.
“Since the pandemic began, we have observed a clear market correction for dispositions with lease terms under 7 years,” says Tyler Strauss, “the buyer pool for assets in secondary markets with shorter lease terms has simply shrunk, with many investors preferring to add more stabilized assets to their portfolio.”
The Faris Lee team was able navigate this challenging marketplace together in real-time with their client, constantly listening to market feedback and adjusting expectations for disposition scenarios.
Faris Lee’s marketing targeted fast-food owners local to the state of California, Southern California 1031 buyers, private investors, and brokers through the company’s proprietary database. Faris Lee identified a buyer who was within a short driving distance of the asset, while also being comfortable with the lease term remaining and no current options to renew. The all-cash transaction closed in 29 days at a 4.89% cap rate.
Conover added “at the end of the day, the buyer acquired a well-positioned real estate with a seasoned franchised operator and outstanding historical occupancy at this proven location.”
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