IRVINE, Calif., May 2, 2022 - Faris Lee Investments, a leading retail advisory, and investment sales firm arranges the $10.275 million sale of Shops at Crown Valley, a 23,315 square foot, 100% occupied Planet Fitness and Shops within a grocery and drug anchored neighborhood center in Laguna Niguel, CA.
Sean Cox and Alex Moore, Directors and Chris DePierro, Matt Brooks, Joe Chichester, Managing Directors at Faris Lee Investments represented the seller in the transaction, a Los Angeles based private family office, and procured a buyer from Riverside, CA who was in a 1031 exchange.
The fully occupied property is located at 30262-30272 Crown Valley Parkway, within the Smart & Final (NAP) and Rite Aid (NAP) anchored center with a synergic tenant mix including, Planet Fitness and the UPS Store to name a few. It sits across the street from the planned Laguna Niguel City Center, a 24-acre mixed use development slated to have 275 residential units and 200,000 SF of retail, office, and restaurant uses.
Faris Lee's marketing strategy focused on the stability of the asset, a fully occupied center with a proven high sales volume track record. The team highlighted the center’s prime affluent location on a high trafficked street within a dense retail corridor. The major tenants had long-term leases with rental increases which provided an investor with long-term stability and a stable growing income stream.
“Investments anchored by fitness operators had fallen out of favor with investors since the COVID shutdown due to the uncertainty surrounding lockdowns and gym’s ability to stay open for business. Our marketing strategy heavily focused on Planet Fitness’s resiliency through the pandemic, and that the operator hadn’t closed a single store since the start of the COVID shutdown.” said Sean Cox.
Faris Lee heavily targeted private investors in large 1031 exchanges nearing the closing of their down leg, which procured multiple qualified offers through a competitive bidding process. The transaction closed with an All-Cash investor in a 1031 exchange with a 15-day due diligence period and a 15-day closing.
“The Shops at Crown Valley, anchored by Planet Fitness, was purchased in an all cash transaction by a local, 1031 exchange, buyer that saw the long-term vision of the shopping center. The listing team generated numerous offers, but ultimately selected the buyer they felt would successfully navigate some of the property’s challenges (i.e. environmental/Phase II results). This transaction represents the lowest cap rate sale for a property anchored by a fitness user in Southern California over the past few years.”
Faris Lee has been the leading retail investment sale broker in South Orange County since 2000, with over $609 million in total sales volume in the region.
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 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, and investment sales to maximize value for clients.