IRVINE, Calif., – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $6.1 million sale-leaseback of a 16,600-square-foot, single-tenant, NNN-leased retail property fully occupied by Kiddie Academy in Irvine, Calif. At the close of escrow, Kiddie Academy ownership signed a new long-term 20-year lease with rare annual rent increases.
Matthew Mousavi, Patrick Luther, and Thomas Chichester of Faris Lee Investments represented the seller and operator of Kiddie Academy, JS&A, LLC. The buyer, Los Angeles-based Everwin Investments, Inc., was represented by Treeline Realty. The closing cap rate was 6.5 percent and the price-per-square-foot was just over $367.
The property, situated on .89 acres at 16655 Noyes Ave., was built in 1974 and underwent a complete renovation in 2007. This highly successful Kiddie Academy location has been operating at full capacity, year-over-year, since opening in 2006.
“Faris Lee highlighted the rare opportunity to own a stable retail property in a key central Orange County location. We also advised the operator/seller, an award-winning regional franchisee for Kiddie Academy, on how to strategically structure a sale-leaseback,” said Mousavi. “We received 15 offers on the asset, secured strong pricing and one of the lowest cap rates for a preschool-occupied property over the last few years.”
The preschool is well-located in between Vestar Development’s The District Shopping Center (anchored by Costco, Lowes, Target, and Whole Foods) and Diamond Jamboree – both highly successful retail developments. The property also benefits from a dense location with 538,000 people living within a five-mile radius, with an average annual household income in excess of $96,000, as well as an abundance of daytime employees in the immediate vicinity who have a need for child care services.
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.