Irvine, CA (March 10, 2021) – Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the $22.6 million sale of Central Plaza Shopping Center, in Lake Elsinore with the $2.850 million sale of ULTA Beauty, the last piece of a break-up strategy implemented to maximize value for the seller.
The Faris Lee team sold a total of 7 different properties within the center to 7 different buyers that either closed all cash or with financing— a STNL Marshalls, a STNL Panera Bread Drive Thru, a 2-tenant pad with Pieology & Ono Hawaiian BBQ, a STNL Five Below, a STNL Sketchers, a STNL Miguel Jr’s Drive-Thru, and most recently a STNL ULTA Beauty.
In order to maximize value and increase the buyer pool, the Faris Lee team advised the owners during the planning stages to consider a break-up sales strategy—that is, to sell the center in parts vs as a whole, as the sum of the parts are of greater value than the entire package.
“A break-up strategy allows for new and unseasoned investors or buyers to purchase a single tenant asset as a part of a larger successful shopping center that they probably couldn’t afford as one large investment,” says Jeff Conover, Senior Managing Director with Faris Lee Investments. “It gives the opportunities to new types of buyers to invest in the retail investment community with smaller total dollars. The smaller price points open up a larger buyer pool.”
“One unique aspect of the sales process was all the pad sales including Panera Bread, Pieology/Ono Hawaiian Grill, and Miguel Jr’s were “pre-sales”, whereby the buyer closed on the property prior to the tenants being open and paying rent,” says DePierro.
Similar to the Marshalls, Skechers and Five Below, the ULTA Beauty sale had many challenges, such as onerous lease provisions, that the Faris Lee team had to overcome during the escrow to get the Buyers and lenders comfortable with the investment.
“We were able to secure financing with a credit union and close despite ULTA’s termination rights tied to gross sales threshold and co-tenancy provisions in the lease with the other major tenants in the center,” says Conover.
“Faris lee was able to generate multiple offers and close with 1031 exchange buyers by marketing through their 1031 Exchange Buyer national platform,” said Conover.
Central Plaza Shopping Center is a 7.33 acre / 66,000 SF shopping center located at the I-15 Fwy at Central Avenue, one of the main commercial hubs serving Lake Elsinore, Temescal Valley, Canyon Lake and Wildomar. The center was 100% pre-leased to national tenants upon commencement of construction.
Jeff Conover, Senior Managing Director and Chris DePierro, Managing Director with Faris Lee Investments represented the seller HFC/PRP Elsinore LLC on all transactions.
About Faris Lee Investments: Faris Lee Investments is a national 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. Through its strategic partnership with X-Team Retail Advisors, a nationwide affiliation of seasoned retail leasing experts, Faris Lee offers a fully integrated platform with disciplined expertise in landlord leasing, tenant representation, capital markets, and investment sales to maximize value for clients.
For more information, visit www.farislee.com
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