IRVINE, Calif., August 3, 2017 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $13.5 million sale of a 24,130-square-foot freestanding retail property triple-net leased to CVS/Pharmacy in Norwalk, Calif.
Nicholas Coo, senior managing director, and Joseph Chichester, director with Faris Lee Investments represented the 1031 exchange buyer, Nasa Norwalk Center Enterprises, LLC from south Orange County. Donald MacLellan, senior managing partner with Faris Lee Investments represented the seller, WMG-CGI Norwalk, LLC from Scottsdale, Ariz. The closing cap rate was 4.6 percent, the lowest cap rate for a CVS Pharmacy sale in 2017 nationwide per CoStar records.
“Financing was critical to meeting the buyer’s goals. Ultimately, the Faris Lee team was able to secure 10-year interest only financing featuring a historically low interest rate,” said Coo. “This financing structure enabled us to meet the seller’s price expectations while at the same time increasing the buyer’s cash flow by more than 35 percent compared to the single-tenant property he traded out of. The carefully structured financing resulted in a winning situation for both sides of the transaction.”
Situated on just under two acres of land at 11623 Rosecrans Avenue, the property is within Norwalk Square, a retail center that includes O’Reilly Auto Parts and Cricket Wireless among others. It is well-located at the busy signalized intersection of Rosecrans Avenue and Pioneer Boulevard which sees more than 80,000 vehicles per day.
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.