Faris Lee Investments Completes $10 Million Sale of Rite Aid-Occupied Property in Los Angeles, California
IRVINE, Calif., February 15, 2018 – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $10 million sale of a 12,573-square-foot retail property on 1.08 acres located at 959 Crenshaw Blvd. in Los Angeles. The free-standing building is currently 100 percent occupied by Rite Aid.
Senior Managing Director Nicholas Coo, Managing Directors Thomas Chichester and Joseph Chichester, and Director Matt Brooks with Faris Lee Investments represented both the Newport Beach-based private seller and the Beverly Hills-based private buyer who was in a 1031 exchange and paid all-cash. The buyer removed all contingencies within a week, and the transaction closed shortly thereafter. It had an aggressive cap rate of 4.35 percent.
“This remarkably high quality property offered a once-in-a-generation opportunity to acquire a trophy, single-tenant, investment-grade Rite Aid located in the prestigious Hancock Park neighborhood of Los Angeles,” said Coo. “The tenant is currently paying an under-market rent on its 20-year lease, giving the buyer an option for a rent increase when the lease expires next year.”
The property is ideally positioned at a signalized intersection of two major arteries, Crenshaw Blvd. and W. Olympic Blvd. within a very short walk from a Los Angeles Metro stop for the Gold and Red lines, used by approximately 350,000 commuters every day. It is the only drive-thru drugstore within a one-mile radius, and has operated very successfully at the location since its inception in 1999.
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States, with revenues of $32.84 billion in 2017.
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.