Irvine, CA – March 7, 2022 - Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the $14.068 million sale of La Paz Shopping Center in Laguna Niguel, CA. The transaction presented an opportunity to acquire a high-profile market and drug anchored center in South Orange County’s premier retail corridor.
Scott DeYoung, Senior Managing Director, Jeff Conover, Managing Principal, and Chris DePierro, Managing Director at Faris Lee Investments represented the seller, Carson Companies, a Newport Beach-based family office, and the buyer, a private investor who recently moved to Orange County, in the transaction.
“This was a rare opportunity to acquire a market and drug anchored center in the master planned community of Laguna Niguel. La Paz Shopping Center is on three separate parcels, which gives the Buyer the flexibility to sell or finance one or all parcels at any time” says DeYoung.
The anchor Walgreens was paying below-market ground rent which offered a stable and secure investment for the Buyer. The multi-tenant retail parcel had vacant suites at the time of the sale, which allowed the investor to increase the cash flow upon stabilizing the center.
Wild Fork Foods, is a relatively new meat and seafood market that opened their first locations in South Florida, recently signed a long-term lease and was under contraction at the close of escrow. Wild Fork Foods kept the drive-thru lane, creating the rare opportunity to purchase a market drive-thru pad building. Wild Fork Foods is going through a tremendous expansion in the U.S. and this is the first Wild Fork Foods sale registered in California, according to Costar.
"La Paz Road Shopping Center was Carson Companies last legacy retail asset. Carson targeted the sale of this asset to focus on our core strategy of acquiring, developing, owning and operating logistics properties in our primary markets: Southern California, Houston, TX, eastern Pennsylvania and New Jersey. Faris Lee’s guidance and advisory was instrumental in closing La Paz Road Shopping Center on a tight timeframe and making the process go as smoothly as possible" said Dan Darnell, Vice President of Asset & Portfolio Management for Carson Companies.
Faris Lee Investments focused on the intrinsic value of the real estate and the irreplaceable location in South Orange County. “Based on the unique potential of the asset and in-depth knowledge of the trade area, the Faris Lee team was able to source a qualified buyer based out of Orange County” DePierro added. The transaction closed at a 4.88% cap rate.
“We positioned the property as a high barrier to entry in an affluent and dense trade area with a potential for significant future upside with the below-market rents and vacant spaces,” DeYoung added.
Located at the northeast corner of La Paz Road and Aliso Creek Road, at 460 S. Lake Avenue, the property sits in a dominant retail corridor with proximity to the Aliso Village (Anchored by Whole Foods), Market Place at Laguna Niguel (anchored by Walmart, Pavilions, Hobby Lobby, Marshalls, ULTA & Tilly’s), Plaza De La Paz (anchored by Home Depot & Sprouts), Aliso Viejo Plaza (anchored by Target & Stater Bros), Costco, Kohl’s and Aliso Viejo Town Center (anchored by 20-Screen Regal Cinemas Stadium Theatre, Trader Joe’s, Ralph’s Fresh Fare, T.J. Maxx, Michaels, PetSmart, Barnes & Noble).
About Faris Lee Investments
Faris Lee Investments is a retail brokerage advisory firm founded in 1996 and is based in Irvine, California. The firm specializes in commercial real estate investment sales, brokerage, and advisory services. In addition, the firm provides a national marketing platform of properties for sale, asset appraisal, property valuation, debt structuring, negotiation, market research, and analysis services. Faris Lee combines underwriting and research that exceeds industry standards with a marketing strategy to transform investment potential, enhance value and provide their clients the competitive advantage needed when making investment decisions. The firm also serves as institutional advisors in the areas of acquisitions and dispositions, merchant banking, distressed asset disposition, private equity, and corporate sale-leaseback. For more information, visit www.farislee.com