Irvine, CA – July 11, 2023 - Faris Lee Investments, a leading retail advisory and investment sales firm, is pleased to announce the successful all-cash pre-sale of a newly built Starbucks and Pacific Dental at Pacific Coast Plaza in Oceanside, CA. Jeff Conover, and Don MacLellan, Managing Principals for Faris Lee Investments, Scott DeYoung, Sr. Managing Director, and Chris DePierro, Managing Director represented the Seller, an Orange County-based developer. Shaun Riley, Managing Principal with Faris Lee Investments represented the all-cash buyer from Los Angeles County, who utilized a 1031 Exchange to secure the property. The transaction closed at a sale price of $5,880,000, $1,176 PSF with a cap rate of 4.99%.
This investment offering presented an exceptional legacy asset for an investor. The pre-sale allowed the developer to close escrow on the property and re-deploy the funds into other projects. The subject property is located on an out-parcel pad to the dominant 450,000 SF Pacific Coast Plaza which is home to industry-leading retailers such as Walmart, Nordstrom Rack ( coming soon ), Best Buy, Dick’s Sporting Goods, Petco, Five Below and Best Buy
Overcoming typical challenges associated with a pre-sale, the team skillfully executed the transaction and was able to satisfy the buyer’s 1031 exchange & payoff the existing loan coming due for the developer. In addition, the team was able to structure an all-cash transaction which alleviated any financing issues related to tenants not having occupancy at the close. This demonstrated the firm's expertise in navigating complex real estate deals and delivering exceptional results for its clients.
Faris Lee Investments strategically targeted California 1031 Exchange Buyers, highlighting the strength and long-term security provided by the quality tenants. The property's intrinsic real estate location further enhanced its market appeal.
"We are pleased to have completed this pre-sale transaction in a challenging capital markets environment," said Conover. "The successful pre-sale of the Starbucks & Pacific Dental pad building was a win-win for both the Buyer & the Seller. We are proud to have delivered outstanding results for our clients and solidified our position as a leader in the retail investment brokerage industry,” Conover added.
“This transaction required Faris Lee Investments to act as a team project manager coordinating among construction, city, tenants, and developer in order to have the needed timeline thresholds required by the buyer, “said MacLellan.
Faris Lee Investments continues to lead the way in providing innovative solutions and superior brokerage services to its clients, ensuring maximum value and success in every transaction.
About Faris Lee Investments:
Faris Lee Investments is a retail brokerage advisory firm founded in 1996 and is based in Irvine, California. The firm specializes in commercial real estate investment sales, brokerage, and advisory services. In addition, the firm provides a national marketing platform of properties for sale, asset appraisal, property valuation, debt structuring, negotiation, market research, and analysis services. Faris Lee combines underwriting and research that exceeds industry standards with a marketing strategy to transform investment potential, enhance value and provide their clients the competitive advantage needed when making investment decisions. The firm also serves as institutional advisors in the areas of acquisitions and dispositions, merchant banking, distressed asset disposition, private equity, and corporate sale-leaseback. For more information, visit www.farislee.com
Media Coverage: https://www.connectcre.com/stories/faris-lee-arranges-pre-sale-of-oceanside-retail-in-1031-deal/