MANHATTAN BEACH, Calif. – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed the $6.25 million sale of a highly sought-after single-tenant ground lease in Manhattan Beach, Calif. The free-standing, 5,782-square-foot property, located at 1727 Artesia Blvd, is occupied by JPMorgan Chase Bank in a long-term 15-year NNN lease.
Faris Lee Investments marketed the property on behalf of the seller, Sackley Family Trust, a local South Bay developer and investor, who built the property in 2007. CBRE represented the buyer, a private family trust in a 1031 exchange. The all-cash transaction closed at full asking price and was the lowest cap rate on record for a Southern California JP Morgan Chase Bank per CoStar records.
“Our team strategically leveraged the strength of a Fortune 500 tenant and “main and main” location in a high-profile, dense coastal community to effectively position this asset to achieve our asking price. We were able to entertain multiple offers garnering an all-cash offer to close the deal,” said Chris Tramontano, managing director, who led the sale along with Mike Ward of Faris Lee Investments.
“It’s an irreplaceable retail trophy property making it a rare and lucrative investment opportunity.” To that end, Tramontano added that the property received in excess of 15 offers.
The property is ideally positioned at the signalized hard corner intersection of Artesia Blvd. and S. Aviation Blvd which features an astounding 76,500 vehicles per day at the intersection. Average annual household income within the city of Manhattan Beach is nearly $200,000 with more than 214,000 permanent residents and 87,000 daytime employees within a 3-mile radius of the property.
“We are seeing a strong shift by the high net worth investor in moving from multifamily to retail assets as part of a long-term wealth diversification strategy. In this case, the buyer was selling a multifamily asset to buy into a very strong, high-profile retail asset,” said Rick Chichester, president and CEO, Faris Lee Investments.