IRVINE, Calif., October 25, 2016 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $1.62 million ground lease sale of a freestanding, 2,975-square-foot retail property in Moreno Valley, Calif. The property includes a newly developed single-tenant restaurant building that is occupied by El Pollo Loco which has a new, 20-year lease in place. At a 3.98 percent cap rate, the sale marks the lowest cap rate ever for an El Pollo Loco-occupied asset throughout the United States, per CoStar records.
Jeff Conover with Faris Lee Investments represented the seller and developer of the property, Redlands, Calif.-based Infinity RS, LLC. The buyer, San Francisco-based Ling Trust, was represented by Kidder Mathews.
“Faris Lee began marketing this property during development and it sold for $10,000 over the asking price while it was still under construction,” said Conover. “New, single-tenant assets with long-term leases by recognizable tenants like this property are highly sought after. Ultimately, we secured multiple offers and sold the asset for all-cash to a 1031 exchange buyer.”
Located at 15135 Perris Blvd., El Pollo Loco opened its doors in August 2016. The property is situated at the signalized intersection of Perris Blvd. and John F. Kennedy Drive which sees more than 36,000 vehicles per day. The property is across the street from numerous national retail brands including 7-Eleven, Jack in the Box, Cardena’s Supermarket, Boost Mobile, and Little Caesar’s Pizza, and is near March Air Reserve Base which includes approximately 30,000 personnel.
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.