Retail Investment Sales Advisory Transaction of a Strip Center in California
Irvine, Calif. – April 17, 2023 – Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the all-cash $3.75 million acquisition of a triple net lease (NNN) strip center, Meadow Lane Plaza in Colton, CA.
Shaun Riley, Principal, and Nick Miller, Director Faris Lee represented both the buyer and the seller in the transaction.
The offering
The property, located at 1705 E. Washington St within Colton’s primary retail corridor, presented a unique opportunity to acquire a covered land play at only $47 per square foot on the land. With the majority of the suites less than 1,200 square feet, the buyer was comfortable the short-term leases could be renewed and any upcoming vacancies would be leased quickly. The property is 100% leased and the tenants at the property benefit from synergistic crossover traffic from other nationally recognized retailers including Walmart, Stater Brothers, 99 Cents Only, Ross Dress for Less, McDonald’s, Rite Aid, and medical centers within the immediate area.
"Given the unique value add offering, we generated 16 offers in a challenging market environment. Investors are still seeking to add well-positioned Inland Empire retail centers to their portfolio,” said Shaun Riley.
The Result
“We focused our efforts on communicating the upside of the property which consisted of lease extensions, rent increases, and a low cost per square foot,” said Nick Miller
The team exclusively targeted private investors and family offices with a particular focus on investors who reside in the Inland Empire. The majority of the investors wrote offers with no or only a small amount of financing.
The transaction closed all cash with an investor from the Inland Empire, at a 6.35% cap rate and $239 per sq. ft.
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
Media Coverage:
Faris Lee Brokers $3.8 Million Sale of Shopping Center in Southern California
Faris Lee Brokers $3.8M Sale of Meadow Lane Plaza Shopping Center in Colton, California