Murphy Oil in Baton Rouge LA and QuikTrip in McDonough GA had each just signed long-term NNN Ground Leases before closing.
IRVINE, Calif., July 26, 2022 – Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the $8.20 million “pre-opening” sales of Murphy Oil and QuikTrip in Louisiana and Georgia.
The team at Faris Lee Investments, led by Jeff Conover, Scott DeYoung, and Hunter Steffien represented the seller in both transactions. The combined cap rate of 4.3% is two of the lowest ever recorded for a single-tenant Murphy Oil and QuikTrip in the Southeast region per CoStar records.
Murphy Oil had recently signed a new 20-year absolute NNN ground lease including rental increases. The property sits at the intersection of Airline Highway & Old Hammond highway (±74,900 VPD), which is the busiest and densest retail corridor in all of Baton Rouge market. The team launched the property shortly after Murphy Oil accepted the premise and procured a cash buyer based on the East Coast.
“The team was able to generate multiple offers during the marketing period, engaged a buyer through escrow while the building was under construction, and closed on the rent commencement date,” said DeYoung. The transaction closed at a high price per square foot ($1,273) and the lowest cap rate for a Murphy Oil in the southeast region (per CoStar records).
QuikTrip had recently signed a 15-year absolute NNN ground lease with rental increases. The property sits in the heart of the retail corridor of McDonough strategically off the I-75 on-ramp (±131,998 VPD). The new site is a relocation showing a deep commitment to the marketplace. The relocation will allow the tenant to out-position their competitors in the immediate trade area.
Faris Lee Investments procured a local Family office buyer who typically invests in excellent real estate leased to credit tenants which will provide security for generations. Amazingly, the transaction closed shortly after QuikTrip accepted the premise and before the tenant started any construction.
“We knew the fundamentals of the real estate and QuikTrip's commitment to the trade area, with the corporate guaranteed long-term lease and the relocation to a superior site , would allow us to close on the property before the start of any construction We also knew that the pre-sale wouldn’t impact the Cap Rate. Said Steffien As a result, the property sold 6 months before QuikTrip’s grand opening at a 4.15% cap rate,” Steffien added.
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