Irvine, CA (August 27, 2019) - Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the all-cash $14.86 million sale of Eden Shores, a newly constructed Costco Shadow anchored center in Hayward, CA.
Don MacLellan, Senior Managing Partner, along with Tom Chichester, Joe Chichester, and Matt Brooks, Managing Directors with Faris Lee Investments represented the seller PCCP, LLC & SteelWave and Lee and Associates represented the buyer.
Eden Shores is the primary daily needs retail center located within the master-planned community of Eden Shores. The center is comprised of a diverse rent roll of daily needs and food use tenants including Starbucks, Bank of America, Five Guys, Ike Sandwiches and Orange Theory, who are all highly successful retail operators.
Pacific Coast Capital Partners & Steel Wave engaged Faris Lee Investments to sell the under-construction center on a pre-sale basis. The challenge was to find a buyer immune to potential interest rate risk and comfortable with the longer escrow period needed for the completion of tenant occupancies.
“Eden Shores has tremendous synergy with the adjacent Costco which is amongst the top producing Costco’s in California. The lack of daily needs retail in the trade area provides ideal positioning to maximize consumer draw. The combination of Eden Shores’ location and tenant-mix established the property’s optimal position within the trade area,” says Don MacLellan.
Through its strategic positioning and marketing, Faris Lee Investments generated multiple offers and attracted a myriad of investor profiles. The high level of interest created a bidding war resulting in pricing in the high 4% cap rate range. Faris Lee exceeded seller expectation at a high watermark for a retail asset this size and quality. The team found a local all-cash investor with long term investment needs looking to acquire a legacy asset like Eden Shores.
“With limited land available in the area for future development and competition, the center serves as the primary retail option for the immediate neighborhood. The property presented a rare Bay Area opportunity for an infill core shadow-anchored daily needs adjacent to one of the top-performing Costco’s in the Bay area. Institutional, domestic and foreign investors alike continue to have high interest for excellent Bay Area real estate,” says Matt Brooks.