Retail Investment Sales Advisory Transaction in Ceres, California
Irvine, Calif. – March 22, 2023 - Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the $2.32 million sale of a Dutch Bros with corporate guaranty in Ceres, CA. The company currently has 671 locations with a market cap of $5 Billion (March 2023).
The opportunity
Faris Lee represented the seller in the transaction and sourced a buyer in a 1031 Exchange from the greater Modesto MSA.
Located at the northeast quadrant of E. Hatch Rd. and Herndon Ave., the highly visible property was under construction at the time of the sale and featured a 15-year absolute triple net (NNN) ground lease with 10% increases every 5 years during the primary term and options to extend.
The team targeted 1031 buyers from the Western States through Faris lee’s 1031 exchange database, highlighting the strength of the credit tenant, the absolute triple net lease, and the low price point. After receiving multiple offers and despite the rising interest rate environment, the property closed at the lowest cap rate nationally for Dutch Bros in 2023, at 4.30%.
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