IRVINE, Calif., April 10, 2015 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $7.88 million sale of a single-tenant retail property occupied by Hobby Lobby in Jacksonville, NC. The property is new construction and Hobby Lobby recently opened its doors and commenced its triple-net, 15-year lease.
Matthew Mousavi and Patrick Luther of Faris Lee Investments represented the buyer, a privately held equity fund out of New York, as well as the seller, the developer of the property based in North Carolina. The closing cap rate was 6.5 percent.
Faris Lee marketed the property while it was under construction and generated multiple offers from a wide range of buyer profiles including private investors, investment funds, and public REITs.
“Because this property was under construction at the time we took the property to market, Faris Lee identified an ideal buyer that was willing to remove all contingencies with a non-refundable deposit within a short due diligence period, and then close escrow upon Hobby Lobby's opening,” said Mousavi.
“Single-tenant properties that are new construction with a national brand signed as a tenant are arguably the most in-demand asset within the retail sector today,” said Luther.
Luther added that at a 6.5 percent cap rate, this sale represents one of the lowest cap rates on record for a forward commitment Hobby Lobby transaction.
Located at 1290 Western Blvd, the property totals 55,000 square feet.. The site offers excellent street visibility and close proximity to several national tenants such as Target, Lowe’s, Kohl’s, PetsMart and WalMart.
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.