IRVINE, Calif., October 20, 2021 –Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the $5.45 million sale of a freestanding retail property absolute triple-net leased to CVS Y Mas with drive-thru, a concept designed to provide enhanced, personalized service to the local Hispanic community with an additional 1,000 items added to the store.
Associate Director Sean Cox and Senior Managing Director Jeff Conover represented the seller, a Los Angeles based Developer. The buyer, Southern California-based Intertex Property Advisors satisfied their 1031 exchange with this purchase and was represented by Cushman & Wakefield.
Located at 2690 Mount Vernon, Bakersfield, CA, the property is co-anchored with 99 Cents Only, Chase Bank, Arco AM/PM, and Denny’s. CVS has occupied at this location for 48 Years.
“This was a unique opportunity to acquire the fee simple interest in a strong investment grade tenant within the Bakersfield’s designated opportunity zone, which presented investors with future tax incentives and long-term hold advantages,” said Sean Cox.
Conover added: “With the low rent and a short term lease, as well as below replacement cost, the property was a perfect value-add opportunity presenting consequent upside to an investor with the possibility of increasing future rent at the end of the term, as well as the potential to build additional pads within the parking lot.”
At 4.7%, this transaction marks the second-lowest cap rate for a single-tenant CVS sold in Southern California in 2020 and 2021. The strength of the essential needs / Covid resistant tenant, the low rent, and the absolute NNN lease were key components to making this transaction successful.
Faris Lee targeted California 1031 exchange buyers, generated multiple offers, and closed at 97% of the list price. This this the second CVS sold in Bakersfield this year by Faris Lee.
Within a high traffic location and major retail hub, the property is located across from an Albertson's anchored center including a McDonald’s and dd’s Discounts store. Other major retail tenants within close proximity to the subject property include: Home Depot, Walmart Supercenter, Smart & Final Extra, Target, Lowe’s, Walgreens, and PetSmart.