Irvine, CA (October 5, 2020) - In a strategic move to preserve capital and source acquisition opportunities with a high-certainty of execution for its client, Faris Lee Investments has brokered the acquisition of a Starbucks in Santa Ana, CA.
Shaun Riley and Nick Miller of Faris Lee Investments represented the buyer, an Orange County-based family office private investor. Patrick Wade and Alex Kozakov at CBRE represented the Seller. The transaction closed in 16 days at a 4.05% cap, 5 days before the client’s 1031 expired.
Faris Lee Investments helped the buyer acquire a strip center in Camarillo back in 2014. After the sale, he was in a 1031 exchange looking to reinvest in multi-tenant retail. To ensure certainty of execution, considering the state of the market, the team advised focusing on single-tenant investments leased to essential use tenant with a long-term lease.
Located along N. Grand Avenue and Fairhaven Avenue, the property sits on a high trafficked intersection within a desirable affluent submarket for Starbucks customer base. The tenant had just signed a brand new corporate guaranteed 10-year lease providing the investor an opportunity to acquire an secure and stable asset.
“The Investor had shifted investment plans from multi-tenant retail to single-tenant within 30 days of 1031 deadline. With a strict deadline and to meet the investor’s investment needs and business plan, we targeted all our efforts on COVID-19 resistant single-tenant properties to guarantee revenue and security in a time of uncertainty caused by the pandemic,” said Nick Miller.
“Private investors are seeking to avoid the volatility of alternative real estate investments, as a result, properties with long-term leases to investment-grade tenants, like Starbucks, are still in the highest demand,” said Riley.
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.