IRVINE, CALIF. (February 23, 2022) – Faris Lee Investments, a leading retail advisory, and investment sales firm announces the $7 million pre-sale of a Floor & Décor located at 1101 W Expy 83 in McAllen, TX to a Texas-based private investor in a 1031 exchange. This was a rare opportunity to acquire a credit tenant with a long-term triple net ground lease at below-market rent.
The future 65,000 square foot Floor and Decor will be the first store in the Rio Grande Valley. The property is a strategically located outparcel to the high preforming Simon owned La Plaza Mall anchored by Macy’s, Dillard’s, and JC Penney’s.
Jeff Conover, Managing Principal, and Scott DeYoung, Senior Managing Director, represented the Seller, a Texas-based developer, and procured a 1031 exchange Texas Buyer in this transaction.
Floor & Decor provides investors with a strong and growing credit tenant as its stock has appreciated approximately 4 times since the beginning of the pandemic.
“STNL Investments with below market rents and below replacement costs are highly desired by investors in the current marketplace. In addition, the growing market cap and strong credit of Floor and Décor with a brand new 15-year initial lease term provides investors a long-term passive income stream, secure, and stable investment,” said DeYoung.
The transaction closed at 100% of the list price at a 5.00% cap which is an aggressive cap rate for a STNL Floor & Décor in Texas. In 2021, Faris Lee Investment also sold a net lease Floor & Décor at a 4.6% cap rate in Fresno, CA, the lowest cap rate registered nationwide for a single tenant net lease Floor and Décor.
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
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