Moreno Valley, CA – May 30, 2023 - Faris Lee Investments, a leading retail advisory, and investment sales firm has sold Woodstock Plaza, a strip center located at the bustling intersection of Alessandro and Heacock in Moreno Valley, for $4,550,000 with a cap rate of 5.19%. The property, which presented a value-add opportunity with 25% vacancy at closing, received multiple offers from private investors, developers, and investment companies.
Shaun Riley, Principal, and Nick Miller, Director at Faris lee Investments represented the seller.
The property was offered at below replacement cost and as a covered land play, with a building price per sq. ft. of $247 and a land price per sq. ft. of $58. The property is well-positioned for future upside potential as it is located on the hard corner of a 46,000 vehicle per day intersection with tenants on short term leases at below market rents.
"The success of this sale was a testament to the property's potential for upside, despite the challenges of increasing interest rates and slowing activity from 1031 investors being experienced in the current investment market," said Shaun Riley. "We were able to work closely with the buyer to justify the in-place income and demonstrate the potential for upside, resulting in a successful transaction," said Nick Miller.
The buyer, an all-cash private investor who owns another center in Moreno Valley and multiple centers in the Inland Empire, achieved a 5.19% cap rate on current income. This transaction, along with Faris Lee’s recent sale of Meadow Lane Plaza in Colton, demonstrates continued investor interest in the area.
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