IRVINE, Calif., April 17, 2017 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $4.65 million acquisition of a newly developed, 8,500-square-foot multi-tenant retail property within Grand Crossing, a mixed-use development in Katy, TX.
Jeff Conover, senior managing director with Faris Lee Investments, represented the buyer, Los Angeles-based Caswell Development, LLC. The seller was the developer of the property, Edifice GC Katy, TX. The closing cap rate on the transaction was 7.12 percent and the property sold for a price per square foot of $547.
“This was a strategic upleg in a 1031 exchange,” said Conover. “We sold a single-tenant net-leased Rite-Aid property on a short-team lease in California with the goal to trade-up into a multi-tenant property with credit tenants in a strong demographic trade area. Grand Crossing checked all the boxes. By trading out of ownership in California into a stabilized asset in a high growth Texas location, my client will now have a more favorable cash flow with a higher return, in addition to security and stability now and for the long-term.”
Built in 2016, the property is situated on two acres of land at 23641 Katy Freeway in an area that has seen a nearly 11 percent growth in population over the last five years. The fully occupied asset includes Sleep Number, Carus Dental and Lux Nail Salon, which are on long-term leases. The asset fronts Costco at the I-10 and Highway 99 interchange, and is within the 125-acre Grand Crossing development project which upon completion, will include multi-family, office, and retail uses in a walkable environment.
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.