Faris Lee Investments Guides a 1031 Buyer Through 3 Acquisitions Totaling $24.8m During The Pandemic

In a continued effort to continue to seek viable investment opportunities for its clients, Faris Lee Investments has arranged three off-market acquisitions: Meridian Plaza, a multi-tenant retail center anchored by Dollar Tree in Cypress, CA, a Starbucks in Santa Ana, CA, and most recently a strip center, in Chino Hills, CA.

Nick Miller, Director and Shaun Riley, Senior Managing Director represented a 1031 exchange Orange County-based family office buyer in all three transactions. Back in 2014, Faris Lee Investments helped the buyer acquire a strip center in Camarillo. After the sale, he was in a 1031 exchange looking to reinvest in multi-tenant and single-tenant retail.

Chino Hills Courtyard is a 9,193-square-foot strip center in Chino Hill, CA. The property is 100% occupied by 8 tenants, consisting of several strong national tenants including Rubio’s, Jersey Mike’s Subs, Mathnasium Tutoring Services, DogHaus, and Bank of America. The tenants are all on a NNN basis, creating minimal landlord management, passive income, and an ideal investment for a 1031 exchange buyer. Also, multiple tenant leases feature rental increases and options to extend, generating steady income and hedging against inflation. The buyer acquired the asset for $7.5M. Tom Chichester and Nick D’Argenzio, Managing Directors at Faris Lee Investments represented the seller, a private investor based out of South Orange County.

“Through our integrated platform and collaboration, we were able to match the seller, a repeated client, to the buyer in hard-to-find off-market transactions,” said Tom Chichester.

Meridian Plaza, is a 28,500 square feet property fronting Katella Avenue. The asset is comprised of several national tenants including Starbucks, Dollar Tree, H&R Block, and Wienerschnitzel. The buyer acquired the asset for $13 million.

Starbucks, is located along N. Grand Avenue and Fairhaven Avenue. The property sits on a high trafficked intersection within an affluent submarket. The tenant had just signed a brand new corporate guaranteed 10-year lease providing the investor an opportunity to acquire a secure and stable asset. The buyer acquired the asset for $4.3M. The transaction closed in 16 days at a 4.05% cap, 5 days before the client’s 1031 expired.

The acquisition search parameters consisted of targeting COVID-19 resistant multi-tenant strip center assets with minimal to no rent collection issues as well as single-tenant assets. Many of the offering submittals were off-market properties.

“In the current market, we are seeing a flight to quality not only to investments having credit-worthy tenants, but to those investments with strong rent collections. There was a significant uptick in transaction volume in the 4th Quarter of 2020 and the momentum is continuing into the 1st Quarter with strong pricing being paid” said Riley.

“Transacting a multi-tenant retail sale in the current market is challenging,” said Nick Miller. “Investors seek viable, secured, and income-producing investments. We were able to evaluate several prospective transactions and provide guidance to enable our client to achieve his investment objectives.”

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.

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