IRVINE, Calif., July 29, 2022 - Faris Lee Investments, a leading retail advisory, and investment sales firm arranges the $25 million sale of The Promenade Shopping Center, a 118,485 square foot, 100% occupied community center strategically located in the core of the residential population in Modesto, CA.
Alexander Moore & Sean Cox, Directors, and Don MacLellan, Managing Principal at Faris Lee Investments represented the buyer, a Modesto based private family office in a 1031 exchange. The Seller was an ownership group managed by West Valley Properties, Inc., a Los Altos, California based private investment firm.
The property, located at 3501 McHenry Ave, sits at the second highest trafficked intersection in the city and is one of the dominant community centers serving the trade area. It is home to major national tenants including Ross, Barnes & Noble, AutoZone, Skechers, Hallmark, Cold Stone, and Subway among others.
Faris Lee's marketing strategy focused on the tenant’s long-term historical occupancy, strong performance during the pandemic, below market rents, and ability to purchase the center below replacement cost. The properties strategic location at the heart of the main retail corridor in Modesto, along with the opportunity to raise lease rates and increase the net operating income over time drove the pricing for the asset.
“We’ve seen continued strong investor demand for strategically located community centers throughout the Central Valley of California. This marks Faris Lee’s fourth sale of a +$25 million shopping center within the region over the past 14 months” said Moore.
Faris Lee targeted private investors in large 1031 exchanges local to the central valley. The transaction closed at contract price during an increasing rate environment that also accommodated both parties 1031 exchange timeframes.
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