Faris Lee Investments Completes $16.8 Million Sale of a CVS/Pharmacy-Occupied Single-Tenant Retail Property in San Francisco
IRVINE, Calif., February 12, 2018 –Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the record-breaking $16.8 million sale of a freestanding retail property triple-net leased to CVS/Pharmacy in San Francisco. Located at 1900 19th Avenue, the property is situated on just under one-half acre of land. A major renovation of the asset recently completed with the tenant opening its doors late November 2017.
Senior Managing Director Jeff Conover and Managing Director Thomas Chichester represented the seller. The buyer, San Francisco-based First and Mission Properties, LLC, was in a 1031 exchange and was represented by Dan Lem of LemRx Realty Advisors.
“At 4 percent, this transaction marks the lowest cap rate ever for a single-tenant CVS sold above $10 million on a national basis,” said Conover. “It also achieved one of the highest sales prices and highest price per square foot of $1,034 for a single tenant CVS property.”
Chichester added: “This was an extremely rare opportunity to acquire the fee simple interest in legacy real estate, occupied by a strong tenant within the densely populated and affluent city of San Francisco. It isn’t surprising that we had significant offer activity and that the buyer agreed to acquire the asset prior to renovation completion and tenant move-in.”
The renovated is based on CVS’ latest prototype and will feature rare roof top parking, along with an adjacent street level parking lot.
This irreplaceable trophy asset is located within San Francisco’s Sunset/Parkside district. The site benefits from high visibility at the signalized, hard corner intersection of Highway 1 (19th Avenue) and Ortega Avenue which sees more than 80,000 vehicles per day. Highway 1 (19th Avenue) is the main thoroughfare road traveling along the entire California coast line, directly through Golden Gate Park and across the famous Golden Gate Bridge. In addition, the site benefits from extremely dense and affluent surroundings, with over 411,000 people within a three-mile radius.
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.