$2.1 Million Sale of Highland Retail Center
Highland, CA – Underscoring the complexity of today’s retail investment landscape, Faris Lee Investments, the nation’s largest retail-specialized investment sales and advisory team, has finalized the all-cash $2.1 million sale of Stoney Creek Retail Center, a 14,337-square-foot retail strip center located at 7354 Stoney Creek Drive in Highland, Calif. Dennis Vaccaro, senior managing director, and Rich Walter, president, with Faris Lee Investments represented the REO seller, California Bank & Trust, and the buyer, Canoga Park, Calif.-based Infinity Commercial Group LLC.
ilt in 2007, the property is situated on nearly two acres of land and includes two multi-tenant buildings and an auto-service pad building occupied by Valvoline Express Lube. Some of the tenants include Fitness 19 (the anchor tenant), Tiki Hut Frozen Yogurt, NutriShop, and Domino’s Pizza.
While the property was well maintained, well-located, and 91 percent occupied, there were multiple account receivable issues that needed to be resolved. Moreover, several tenants were putting pressure on the owner to lower their rent obligations based on the current economy, noted Walter.
“Our job in a transaction such as this is to manage the process from start to finish. We were able to educate the buyer as to the value-add opportunity of the investment. We demonstrated that improvements could be made by implementing a new signage program and negotiating new long-term leases with the existing tenants,” said Vaccaro. “Ultimately, this was a rare turn-key, pride of ownership, bank-owned opportunity for an all-cash buyer.”
“One unique aspect of the marketing strategy for Stoney Creek was the long-term potential for a break-up strategy as a way to maximize cash flow and returns,” said Walter. “The center is situated on multiple parcels, providing flexibility for the new owner to sell off the parcels together or individually in the future.”
Stoney Creek Retail Center is located within a growing area within the Inland Empire. Over the last few years, Highland has seen several highly successful residential communities developed in close proximity to Stoney Creek. In addition to the new residential communities, Highland has recently attracted retailers such as Lowes, LA Fitness, and Staples. The new retailers bring along with them other supporting tenants and increase overall employment and economic growth to the area.
About Faris Lee Investments
Faris Lee Investments is an advisory and brokerage firm specializing in retail real estate. The company’s team of high-level retail investment and financing experts develop forward-thinking strategies to maximize values of all retail acquisitions and dispositions and to guide clients through complex transactions. Cumulatively, the senior management team of Faris Lee has been involved in more than $20 billion of transactions. Faris Lee’s senior experts are skilled in disposition and acquisition strategies, 1031 exchanges, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, please visit www.farislee.com.