Faris Lee Investments Completes Sale of Three Retail Properties in Murrieta, Calif. Totaling $8.4 Million in Pre-Sale / Break-Up Strategy
IRVINE, Calif., – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed the sales of three newly constructed single-tenant NNN leased properties within a neighborhood shopping center in Murrieta, Calif. which include Del Taco, Davita Dialysis, and Mountain View Tire and Service/Goodyear. The sales are valued at a total of $8.4 million.
Donald MacLellan, senior managing director, and Christopher Tramontano, director, with Faris Lee Investments represented the seller and developer of the properties, Newport Beach, Calif.-based Sierra Lane Partners LLC.
The transactions were part of a complicated sales strategy. First, instead of being marketed as one investment opportunity, Faris Lee advised the seller on a break-up strategy. This tactic maximized value of the properties by selling them off individually to increase the buyer pool to include smaller investors. Second, Faris Lee began marketing the properties before they had completed construction as part of a pre-sale strategy.
“The developer of these properties wanted to garner the highest sales price on the assets, while at the same time capitalize on its investment as quickly as possible once the properties were completed,” said MacLellan. “Faris Lee was engaged in advising the seller early in the construction phase and created a strategy to break up the land parcels so they could be sold individually, and then began marketing the properties during construction in order to close escrow as soon as possible once they completed.”
MacLellan added that Del Taco and Goodyear signed absolute 20-year NNN leases and Davita signed a 15-year NNN lease.
“These properties are located in a highly trafficked area that is underserved in retail,” said Tramontano. “The prime location combined with the high demand for single-tenant leased retail property garnered a huge response from the investment community as many investors seek these out as stable, long-term holds with favorable annual returns.”
Below is information on each property:
· The Del Taco property is located at 27596 Clinton Keith Road and totals 2,162 square feet. The property sold for $2.4 million to a 1031 multifamily private investor from Los Angeles. Charles Dunn Company represented the buyer.
· The Davita Dialysis property is located at 27602 Clinton Keith Road and totals 8,540 square feet. The property sold for $3.36 million to a 1031 Exchange buyer from Los Angeles. The buyer was represented by Marcus & Millichap.
· The Mountain View Tire and Service/Goodyear property is located at 27584 Clinton Keith Road and totals 5,000 square feet. The property sold to the franchise operator, Mountain View Tire, for $2,635,000.
“Rather than taking the traditional, turn-key approach for marketing a retail property, Faris Lee has been at the forefront of advising sellers well-before the marketing process has begun. Sometimes this can take place months or even years ahead of putting it on the market,” said Rick Chichester, president and COO of Faris Lee Investments. “The extensive, sector-specialized experience of our experts enables us to craft exit strategies that help to ensure an optimal outcome.”
The three properties are well-located adjacent to the 215 Freeway and Clinton Keith Road interchange in Murrieta which are major thoroughfares within the area and are being expanded to support the population growth. The 215 Freeway and Clinton Keith Road feature more than 90,000 and 27,000 vehicles per day respectively. Clinton Keith Road was expanded from a two-lane to a six-lane thoroughfare, while the 215 Freeway is being expanded into a six-lane freeway from the Clinton Keith Road junction, south to the 15 Freeway. The City of Murrieta is located in Southwest Riverside County in the heart of Southern California. Major north-south routes, 15 and 215 Freeways, merge in Murrieta, and are 60 miles north of San Diego and approximately 60 miles east and south of Los Angeles.
About Faris Lee Investments
Faris Lee Investments is a leading national real estate investment advisory firm, comprised of three (3) integrated business platforms; Faris Lee Investment Banking, Faris Lee Capital and Faris Lee Advisors. 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, please visit www.farislee.com.