IRVINE, Calif., May 3, 2017 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the nearly $24.83 million sale of Gateway Center, an 89,625-square-foot retail center in Escondido, Calif. The property is 95 percent occupied with anchor tenants, Michaels and Barnes & Noble, as well as a mix of other national and regional brands including Fantastic Sam’s, Firehouse Subs, Dickies, and H&R Block.
Rick Chichester, Donald MacLellan, Patrick Toomey and Tom Chichester of Faris Lee Investments represented the seller, a partnership led by GDA Real Estate Services. Gene Ventura and Jeff Conover of Faris Lee investments represented the buyer, a private investor from San Diego County. The transaction closed at a cap rate of 6.5 percent.
“The seller felt it was an ideal time in the property’s investment cycle to exit the asset and achieve its return objectives,” said Rick Chichester. “Prior to placing the asset on the market, Faris Lee advised the seller on negotiating early lease renewals with its anchor tenants in order to maximize buyer interest and value. This strategy was instrumental in further stabilizing the center, generating multiple offers, and ultimately facilitating the sale and its financing in a relatively compressed timeframe.”
Built in 2003 and situated on 7.1 acres at 810-860 W. Valley Parkway, Gateway Center is located at a highly trafficked intersection near Interstate 15, which sees nearly 200,000 cars per day. It is also surrounded by an affluent area of San Diego County.
“This center met the buyer's goal of diversifying his commercial real estate portfolio,” said Ventura. “This was his foray into the retail sector and therefore, Faris Lee worked closely with the investor in order to educate him on the asset, provide support in the underwriting, and generate detailed market studies to uphold underwriting assumptions and projections. The buyer acquired a rare, institutional-quality north San Diego retail center that he plans on holding long term.”
Gateway Center is well-positioned within the area’s main retail hub, with nearby industry leading retailers including Target, Home Depot, Ross, Albertsons, TJ Maxx, and DICK’s Sporting Goods, to name a few. The asset is also located adjacent to the Escondido Transit Center, which transports over 1.6 million passengers annually. The City of Escondido is in the process of building a bridge to connect the Transit Center directly to the center’s eastern boundary, potentially accessing the passenger traffic from the center and ultimately adding more benefit to the center’s future success, create even more customer traffic.
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.