IRVINE, Calif., March 2, 2022 - Faris Lee Investments, a leading retail advisory, and investment sales firm arranges the $26.5 million sale of Ming Plaza, a 117,228 square foot, nearly 100% occupied shopping center in the dense trade area in Bakersfield, CA.
Sean Cox and Alex Moore, Directors and Don MacLellan, Managing Principal at Faris Lee Investments represented the seller in the transaction, a private family office, and procured a buyer based in the Central Valley who was in a 1031 exchange from an agricultural land sale. This was another example of strong demand from So Cal 1031 investors looking to acquire in the Central Valley as Faris Lee continues to be the market leader in sales throughout the Central Valley.
The nearly fully occupied property is located on Ming Ave., one of the strongest retail destinations and highest-trafficked streets in the trade area. It is adjacent to Home Depot and is close to the Valley Plaza Mall, an A rated regional mall in the valley, comprised of strong anchors like Macy’s, Target, Apple Store, and an IMAX Theatre.
Faris Lee's marketing strategy focused on the tenant’s long-term historical occupancy, below market rent, and ability to purchase the center below replacement cost. All major tenants had long-term leases which provided an investor with long-term stability and an opportunity to raise lease rates to increase their net operating income over time.
“The potential upside opportunity was driven largely by the three outparcels leased to Starbucks, Chase Bank, and Long John Silvers – which could be sold individually at significantly lower cap rates in a break-up sale in the future” said Sean Cox.
“We focused on the long term historical occupancy of the center with an ideal tenant mix of services and daily needs combined with relatively under market shop rents which should bode well for an investor long term” said Don MacLellan.
Faris Lee was instrumental in obtaining the optimal financing terms for the buyer. The team generated several full price offers and closed at contract price, honoring the 1031 exchange timeframe.
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.