IRVINE, Calif., October 18, 2022 – Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the $11.125 million sale of a Bank of America, a 12,919-square-foot single tenant absolute triple net leased retail opportunity on Hawthorne Blvd. in Hawthorne, CA.
Shaun Riley and Jeff Conover, Principals, and Scott DeYoung, Senior Managing Director, at Faris Lee Investments, represented the seller, a private office group from Orange County in the transaction. The buyer, the City of Hawthorne, was represented by Chris Beck with Newmark Knight Frank.
“This investment presented a rare opportunity for the city to purchase a large parcel of 1.12 acres fronting City Hall for future use” said Conover. “With current rent at $0.51 per square foot per month, and renewals averaging at $5.15 per square foot per month, the potential FMV rent enables the City to achieve above-market returns until they decide what to do with the property after the lease expires with Bank of America,” said Conover.
Riley added: “The city was an ideal buyer for the property as they saw the value in the underlying real estate and have a long-term investment time horizon and approval rights on the future use of the property.”
Bank of America is located at 12547 Hawthorne Blvd. fronting City Hall and to the center of the town intersection of Hawthorne Blvd. and El Segundo Blvd. It is near large employers including SpaceX and Tesla design center. Bank of America has been at the location for over 70 years and proved its success as one of the highest deposits, $282 Million, of any Los Angeles County bank branch.
In addition, if the City doesn’t occupy the property in the future, then the large 1.12-acre parcel may be able to accommodate various uses such as drive-thru restaurants and high-density residential developments. The shortage of developable land for future housing needs in the trade area and the demand for such housing, especially affordable living units, added significant value to the underlying real estate.
Faris Lee Investments generated multiple offers and closed at 100% of the listing price equating to $861 per square foot on the building or $228 per square foot on land.
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
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