Faris Lee Investments Completes the Sale of A CVS/Pharmacy At Record Low Cap Rate

IRVINE, Calif., October 21, 2021 –Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the $4.225 million sale of a freestanding retail property triple-net leased to CVS/Pharmacy in the affluent area of Trabuco Canyon, CA. The transaction closed well above the asking price and represented the lowest cap rate recorded for a CVS Pharmacy in Southern California in 2020 and 2021.

President Rick Chichester and Senior Managing Partner Don MacLellan, in partnership with John Cumbelich, Cumbelich & Associates, represented the seller and the buyer, Southern California-based ValueRock Realty in the transaction.

Located at 21572 Plano Trabuco Rd., off Rancho Santa Margarita Parkway and Plano Trabuco, the property is part of a center co-anchored by Smart & Final. Other tenants include Shell, Jack in the Box, Leslie’s Pool, and Subway.

“This was a unique opportunity to acquire the fee simple interest in a strong investment grade tenant within affluent communities of Coto De Caza, Robinson Ranch, Dove Canyon, and Rancho Santa Margarita,” said MacLellan.

“With low rent per square foot and well below replacement cost, the property presented consequent upside. The new Long-term lease extension through 2032 presented long-term security and stability for an investor,” Chichester added.

At 4.39%, this transaction marks the lowest cap rate for a single-tenant CVS sold in Southern California in 2020 and 2021. The strength of the tenant, the low rent, and the NNN lease were key components to making this transaction successful.

Based on the positioning of the property, Faris Lee attracted tremendous interest from the 1031 investor pool generating 27 offers during the marketing period. The transaction closed in 3 weeks, 14% above the list price with a non-refundable deposit at escrow opening.


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