Faris Lee Investments Completes $10.15 Million Sale of Single-Tenant Retail Property Occupied by Hobby Lobby in Palmdale, California
IRVINE, Calif., May 2018 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $10.15 million sale of a newly constructed single-tenant, 54,942-square-foot retail building fully occupied by Hobby Lobby. The triple-net leased asset is located within the Destination 0-Eight Power Center in Palmdale, Calif., and is co-anchored by Walmart Supercenter, Sam’s Club and Kohl’s.
Senior Managing Director Jeff Conover and Managing Director Christopher DePierro of Faris Lee Investments represented the Southern California-based seller, HFC/PRP Palmdale, LLC that was also the developer for a portion of the Destination 0-Eight Power Center. In addition, Jeff Conover & Chris DePierro of Faris Lee Investments also represented the Southern California based buyer, Valuerock Investments Partners LLC. The transaction closed at a cap rate of 6.22 percent.
Built in 2017, Hobby Lobby, the largest privately owned arts and crafts retailer in the world, opened its doors at this Palmdale location in August 2017. The asset is situated on 4.09 acres at 40022 10th Street W. in the heart of the Antelope Valley along 10th Street W. and W Avenue 08, and is just off of Interstate 14. The center is within a busy regional retail corridor and is adjacent to a Walmart Supercenter, Sam’s Club, Kohl’s, Office Depot, Jo-Ann Fabric, Dollar Tree, and Planet Fitness. Additionally, the Antelope Valley Mall which totals more than 1.1 million square feet is located directly across Interstate 14.
“New construction single-tenant properties featuring successful national brand name tenants with new long-term leases are few and far between in the greater Los Angeles region,” said Conover. “The buyer has secured a stable, cash-flowing and low maintenance asset that is poised to see continued value creation as the local market only sees signs of upward growth.”
“This sale represented the third and final successful closing in a breakup strategy of the retail center executed by Faris Lee Investments. Ultimately, this strategy maximized the overall value of the center for the seller. Other sold properties within the center included a record-breaking low cap rate for a single-tenant Planet Fitness and low cap rate for a Dollar Tree-occupied property.” said DePierro.
About Faris Lee Investments: Faris Lee Investments is a 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. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee’s senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, visit www.farislee.com.
Faris Lee is also strategic partner with X Team Retail Advisors, an integrated platform of retail real estate specialists that offers coverage in 40 major markets across the United States and Canada encompassing more than 265 professionals. X Team provides specialty expertise in tenant, property and developer/landlord representation, property dispositions and retail investments.