IRVINE, Calif. – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $3.7 million sale of the Hammer & West Pad building, a 7,294-square-foot multi-tenant retail property located in the central California city of Stockton. The property’s tenants include Western Dental, AT&T and Pizza Hut. The property is part of a larger retail center that is anchored by Walgreens.
Jeff Conover, senior managing director with Faris Lee Investments, represented the seller, Orange County-based West Hammer Properties. The buyer, a private investor from Hillsborough, Calif., was also represented by Conover, along with Mirna Gonzales of residential brokerage firm, Green Banker. The closing cap rate was 6.57 percent.
Built in 2008 and situated on 1.32 acres, the property is located at 7860 West Lane which sees more than 60,900 vehicles per day at the intersection of East Hammer Lane and West Lane. All tenants are on triple net leases, offering ease of ownership.
“Faris Lee targeted our FLI Exchange buyer database and focused on 1031 exchange buyers who had recently sold property in California. We received multiple offers on the asset and secured a 1031 buyer from California,” stated Conover. “During escrow, Krispy Kreme with a drive-thru was in the process of vacating its 1,626-square-foot space which comprised 18 percent of the income stream.”
Conover noted that despite the occupancy being reduced, the property sold for $507 per square foot, a strong price for the local area. “The buyer saw the value of the asset as well as the opportunity to add value by leasing the vacant drive-thru space to a national tenant at an above market rental rate.”
Stockton is the fourth largest city in the Central Valley with a population of approximately 300,000. The city is on Interstate 5, State Highway 99, and State Highway 4 and is California’s 13th largest city. It is located between Sacramento and Modesto, less than 30 minutes from the Bay Area.