Irvine, CA – (Jan 13, 2021) – Faris Lee Investments a leading retail advisory, and investment sales firm has completed the $23.4M sale of Gene Autry Plaza, a Smart & Final grocery-anchored center directly adjacent to the Palm Springs Airport and Gene Autry Business District, one of the densest daytime employment areas in the city of Palm Springs, CA
Don MacLellan & Rick Chichester at Faris Lee Investments represented the seller & buyer in the transaction.
Located at the busiest intersection of East Ramon Road and Gene Autry Trail (56,000 VPD), the historically 98% occupied center features a strong national tenant line-up with a mix of popular national & regional daily needs, food, fitness, and health operators. Staples is the only office supplies retailer within the trade area and Smart & Final is the primary value-oriented grocer for the trade area.
The sale represents the largest grocery anchored center transaction during COVID in 2020-2021 in Coachella Valley and only the second grocery anchored center transaction in California during that time. The pandemic has impacted multi-tenant retail properties as the shutdown has impacted tenants ability to pay rent and sustain their operations. Fortunately , in this case , the essential nature of the grocery Smart & Final anchor, continued to drive strong consumer traffic to the center which benefited the shop tenants .
In addition, the offering required an investor to assume the existing CMBS loan. Faris Lee Investments was instrumental in assisting the buyer through the arduous process of working through getting the assumption approval from the loan servicer and achieving the seller’s timeline in spite of the challenges caused by COVID .
Faris Lee Investments’ marketing strategy focused on the strength of the location and the quality of the tenants which were fundamental for the buyer to pursue their 1031 requirement.
“The key to our marketing strategy was to focus on the high performing Smart & Final Extra!, the historically long-term occupancy, and the strength of the location as the property sits at the retail epicenter of Palm Springs,” said MacLellan.
Faris Lee’s marketing targeted Southern California 1031 buyers, high net worth investors, family offices & syndicators through the company’s proprietary database to identify the buyer.
The seller, Investec Real Estate Companies, based out of Santa Barbara, California, originally purchased the land and finished development in 2007. Through Investec’s stringent acquisition requirements and leasing strategy, they were able to weather the storms of 2008 and 2020 to provide a significant return to the company. An active buyer and retail management company in coastal California, Investec continues to look expand its portfolio in 2021.
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 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