IRVINE, Calif., July 21, 2015 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $9.73 million sale of a freestanding, 15,413-square-foot, single-tenant retail property that is occupied by Walgreens in Tucson, Ariz. The property’s absolute, NNN-lease with Walgreens is corporate-guaranteed and has 23 years remaining on its 25-year initial term.
Nick Coo, Matt Mousavi and Patrick Luther of Faris Lee Investments represented the seller, Los Angeles-based Sierra Industrial, LLC. The buyer, Los Angeles-based Capital Forsight, paid all cash and was represented by CAPRE Real Estate Investments. The transaction closed at a cap rate of 5.25 percent.
“This property offered an attractive long-term Walgreen's lease with rental increases in the option periods,” said Coo. “Faris Lee highlighted the unusual increases in rent during the extension periods; the excellent hard corner location; and the fact that the adjacent center to the rear was under redevelopment. We secured five strong offers and selected a qualified, all-cash buyer who was able to close escrow within a very tight timeframe per the seller’s requirement.”
Built in 2008, the property is located on a signalized intersection at 7111 East Golf Links Road and is an outparcel to the 99 Cent Only-anchored Desert Square Shopping Center. Other nearby retailers include Walmart, Safeway, Fry’s Food and Drug, and O’Reilly Auto Parts. Walgreens is within a densely populated area with more than 212,000 permanent residents within a five-mile radius and in excess of 110,000 daytime employees.
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.