IRVINE, Calif., February 6, 2018 – Faris Lee Investments has completed the $15 million sale of a newly built, freestanding, 40,376-square-foot office building in Long Beach, Calif. It is fully occupied by United Pacific, one of the largest independent owners and operators of gas stations and convenience stores in the Western U.S.
President and CEO Rick Chichester and Managing Director Thomas Chichester represented the seller, an entity of United Pacific. In a sale-leaseback scenario, United Pacific signed a new, 10-year long-term lease. The buyer, a family trust from Northern California, was represented by Bob Bower of CBRE. The transaction closed at a cap rate of 5.33 percent.
“United Pacific specifically developed the property as its corporate headquarters due to the mission critical, 24/7 nature of its business, as well as to provide a state of the art, high quality, high touch, and collaborative work environment for its employees, venders and clients.
“United Pacific structured the sale-leaseback in order to focus on its business operations versus ownership and management of the real estate,” said Rick Chichester. “Both the seller and the buyer executed their business and investment strategies with precision; the seller was able to design the building to meet its specific operating objectives, as well as its social and environmental goals, and the buyer was able to acquire a new, single-tenant asset in the heart of the Los Angeles County market.”
Thomas Chichester added: “As testimony to the demand for assets like this one, Faris Lee secured multiple full price, competing offers, without ever publicly marketing the property.”
Located at 4130 Cover Street on 2.65 acres of land, the building completed construction with tenant move-in in 2017. It is strategically situated at the signalized, hard corner intersection of Cover Street and N Lakewood and is near all major Southern California freeways including Interstate 405, 605, 710, 100 and Highways 22 and 91. Additionally, it is within the prime business/industrial corridor of Long Beach Airport, Douglas Park that includes major companies such as Boeing, Mercedes-Benz, and Virgin Galactic. There are more than 728,000 permanent residents more than 262,500 daytime employees within a five-mile radius.
The United Pacific network includes 320 company operated gas stations and convenience stores, and 55 fee-operated and leased locations. United Pacific, through its retail convenience locations and its retail and wholesale fuel distribution network has established itself as one of the largest independent owners and operators of gas stations and convenience stores in the Western United States. United Pacific offers motor fuels products under the 76, Conoco, Shell and United Oil flags, and convenience items through the We Got It! Food Mart, My Goods Market and Circle K brands. United Pacific operates its retail and wholesale businesses in California, Nevada, Oregon, Washington and Colorado.
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.