IRVINE, Calif., October 13, 2017 – Faris Lee Investments has sold two single-tenant freestanding retail buildings totaling $7.35 million in Palmdale, Calif. The newly developed properties are located within the Destination O-Eight retail power center anchored by Walmart, Hobby Lobby, KOHL’S and Sam’s Club. The first asset is occupied by Planet Fitness and was sold for $4.85 million, and the second property is occupied by Dollar Tree and was sold for $2.5 million.
Senior Managing Director Jeff Conover and Managing Director Chris DePierro of Faris Lee Investments represented the Newport Beach-based seller, Orange County-based HFC/PRP Palmdale, LLC.
“Faris Lee engaged both of the buyers for these assets prior to construction being completed,” said Conover. “We like to have new projects pre-sold for our developer clients so they can be out of the current project and place their funds into the next opportunity. We had a significant amount of bids on each property because they offered new construction, a prime location within Los Angeles County’s Antelope Valley and both tenants are strong national brands on new long-term leases.”
The Planet Fitness property totals 18,000 square feet and is situated on 1.35 acres at 40014 10th Street West. The buyer, a private investor from New York, was represented by Aegis Real Estate. The property sold at a price per square foot of $269 and at a record low cap rate of 6.6 percent for a Planet Fitness-occupied property to date nationally.
The Dollar Tree property totals 12,028 square feet and is located at 40018 10th Street West. The buyer, a family trust from Los Angeles, was represented by Cushman & Wakefield. The property sold at a low cap rate of 5.35 percent and a price per square foot of $208.
DePierro added that Faris Lee is also currently marketing the new Hobby Lobby-occupied building which is adjacent to the Dollar Tree and Planet Fitness properties and is directly between the Walmart Super Center and Sam’s Club. It is being offered for $11.49 million and a 5.5 percent cap rate.
Destination O-Eight power center is highly visible from and offers direct access to the Antelope Valley 14 Freeway which connects the Antelope Valley communities of Palmdale and Lancaster to the Santa Clarita Valley via the 5 freeway. The property is proximate to the Antelope Valley Mall, and there is in excess of 352,000 people within a ten-mile radius of the property.
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.