IRVINE, Calif., – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $12.7 million sale of a fully occupied, 24,262-square-foot, multi-tenant, retail property in Baldwin Park, Calif. The property has a total of 13 tenants including Verizon, AT&T, Gamestop, and Fantastic Sams. It is part of Baldwin Park Towne Center, a larger regional retail development that is anchored by Home Depot along with other national tenants that include McDonald’s, Denny’s, Starbucks, and a 178-room Marriott Courtyard Hotel.
Rick Chichester, Matt Mousavi, and Tom Chichester represented the seller, Los Angeles-based Gershman Properties, LLC. The buyer, Baldwin Park Plaza 11, LP, out of Colorado, was represented by Newmark Grubb Knight Frank. The closing cap rate was 5.9 percent.
“Faris Lee focused on the property’s irreplaceable infill location in Los Angeles County,” said Matt Mousavi, senior managing director with Faris Lee Investments. “We also highlighted the fact that the property is 100 percent occupied, and benefited from an underserved retail area. We received a total of six offers on the asset and ultimately selected a family trust buyer who was in a 1031 exchange. We also advised on a complex financing process as the buyer assumed the existing loan on the property.”
Tom Chichester added that many of the offers were from Asian investors residing outside of the US, supporting the ongoing level of interest in well-located assets in core markets from foreign capital.
Faris Lee represented the seller when it purchased the property three years ago. Since that time, the property experienced a significant increase in value. Faris Lee had been monitoring the property’s valuation and advised the seller on a well-timed exit strategy to maximize their return on investment.
“Faris Lee is very focused on wealth creation strategies and financial advisory expertise for our clients,” said Rick Chichester, president and CEO of Faris Lee Investments. “In this case, we presented an opportunity to the seller that was favorable to their investment goals as well as to the debt and equity requirements of the buyer’s 1031 exchange. The transaction represented an approximate 25 percent increase in value over our client’s purchase price less than three years ago. The return greatly exceeded their expectations.”
Built in 1987 and situated on 1.12 acres, the property is located 14510 Baldwin Park Towne Center and is ideally located at a signalized, hard corner intersection of W. Merced Ave. and N. Puente Ave. It also provides easy access by Interstate 10.
About Faris Lee Investments: Faris Lee Investments is a leading retail advisory and investment sales firm. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee's senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, visit www.farislee.com.