HESPERIA - A multimillion dollar commercial property, located on a busy High Desert intersection, was recently sold.
Faris Lee Investments, a retail advisory and investment sales firm, announced Tuesday the completed sale of a single-tenant, triple-net leased property occupied by U.S. Bank in Hesperia.
Located on the corner of Main Street and Topaz Avenue, the retail property has a price tag $3.28 million. Nicholas Coo, senior managing director, and Joseph Chichester, director with Faris Lee Investments, represented the seller, Los Angeles-based Hesperia-Main Street LLC.
The private investor buyer from Los Angeles was in a 1031 exchange, a swap of one business or investment asset for another, with either no tax or limited tax due at the time of the exchange.
The property sold at a cap rate of 4.8 percent and $911 per square foot, the lowest cap rate and highest price per square foot ever for a bank-occupied, single-tenant property within the High Desert region, Faris Lee reported.
Built in 2007 and situated on 0.69 acres, the property is located at The Shops at Topaz shopping center, anchored by a 99 Cents Only store and several small businesses.
"When initially analyzing the property for the seller we recognized arbitrage value in breaking up the property, which is comprised of three separate parcels," said Coo, in a Faris Lee report.
Coo said the the U.S. Bank sale finishes an assignment which began three years ago in advising the seller to maximize the development's exit value, adding, "Joe (Chichester) and I recognized the strength in credit and bank use category, which allowed us to accentuate pricing."