Faris Lee Investments Completes Record-Breaking Cap Rate Sale of Single-Tenant Retail Property Occupied by Kiddie Academy in Orange County, CA

IRVINE, Calif., September 8, 2021 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $6.55 million sale of a freestanding, single-tenant property occupied by Kiddie Academy in Santa Ana, CA. The property sold at a cap rate of 5.00 percent – a record low for a full-service childcare/daycare facility nationwide, per CoStar records.

Tom Chichester and Nick D’Argenzio, Managing Directors with Faris Lee Investments, represented a local seller, Jawska LLC from Corona Del Mar. The buyer was represented by Southland Commercial Real Estate.

“Faris Lee marketed this asset as an opportunity to own a freestanding property with a superior operator. The opportunity provided the potential buyer with a 20-year sale-leaseback at the close of escrow, new construction, and no management,” said Tom Chichester. “The combination of these elements was instrumental in communicating how this property would meet the long-term investment goals of the investor. We ultimately identified a buyer who paid full price, and set a record-breaking low cap rate.”
Built in 2019 and located at 1345 N. Grand Avenue, the 6,800-square-foot property sits on 0.65 acres.

The Property is located near the signalized intersection of N. Grand Avenue and Interstate 5, in Santa Ana. It is adjacent to the on/off-ramp to Interstate 5. The property benefits from the many affluent residential neighborhoods nearby, which have more than 190,000 households with an average household income of over $100,000 in a 5-mile radius.

“This is the 3rd Kiddie Academy preschool, our team has sold in Orange County for the same owner over the past several years, for a combined total value of $17,555,000,” said Tom Chichester.

About Faris Lee Investments: Faris Lee Investments is a national 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. Through its recent strategic affiliation with X-Team Retail Advisors, a nationwide partnership of seasoned retail leasing experts, Faris Lee offers a fully integrated platform with disciplined expertise in landlord leasing, tenant representation, capital markets, and investment sales to maximize value for clients.
For more information, visit www.farislee.com


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