Temecula, CA – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed three transactions totaling nearly $15 million for outparcels to a regional mall in Temecula, Calif. The fully occupied properties were built in 2000 and are all NNN leased exclusively to national tenants and have at least ten years remaining on their leases.
“Faris Lee’s marketing strategy for these three assets was to obtain mass market exposure with an emphasis on 1031 exchange buyers as well as private investors through our proprietary database,” said Jeff Conover, senior managing director with Faris Lee Investments. “Well located two- and three-tenant properties such as these are hotly contested as investors target the stability of national retailers who are on long-term leases. As outparcels to the Promenade Temecula, a highly trafficked regional mall, these offerings brought dozens of serious buyers to the table.”
The three properties are adjacent to the 1.14 million square foot regional mall, Promenade Temecula, which includes Macy’s, JC Penney, Edwards Theaters, Sears and Old Navy among others. Retailers in the immediate area include Costco, Hobby Lobby, Pier One Imports, Food-4-Less, and K-Mart.
“The seller saw a window of opportunity as buyer demand for this type of retail product was very strong,” said Conover. “This demand combined with financing rates at a historical low prompted the seller to bring the properties to the marketplace.”
He added that Faris Lee is also marketing two other multi-tenant pads on behalf of the same Los Angeles-based seller. The properties front the mall and have Citibank and Hallmark as anchor tenants.
The first property was sold for $7.89 million as is located at 40620 Winchester Rd. The 15,490 square foot property on 1.28 acres is occupied by Panda Express, SmileCare and Sleep Train Mattress. The selling entity was Temecula Place LLC and was represented by Conover. The 1031 exchange buyer was San Diego-based Trail Horse, LLC and was represented by Paul Bonanno with NLRP. The transaction closed at 95 percent of the asking price and at a cap rate of 7.5 percent.
The second property was sold for $3.68 million and is located at 40788 Winchester Rd. The 9,420 square foot property on 1.05 acres is occupied by Men’s Wearhouse & Qdoba Mexican Grill. The selling entity was Plaza Temecula LLC and was represented by Conover. The 1031 exchange buyer was also San Diego-based Trail Horse, LLC. The sale closed at list price and at a 7 percent cap rate.
The third property was sold for $3,364,000 and is located at 40688 Winchester Rd. The 6,750 square foot property on .92 acres is occupied by Sprint PCS, Baja Fresh, and Coldstone Creamery. The selling entity was Temecula Place LLC and was represented by Conover. The all-cash buyer was Temecula Sprint LLC from China who was represented by RE/MAX. The sale closed at a 7.5 percent cap rate and sold for a very high $503 per square foot.
There are more than 382,000 people within a 20-minute drive of the Promenade Temecula and a nearly 60,000 day-time employee population within a five-mile radius. There are also huge traffic counts of approximately 195,000 vehicles per day on Interstate-15 at Winchester Road coupled with the massive intersection traffic of over 106,000 vehicles per day at Ynez Road and Winchester Road. All of these factors add to the strength of the proven Southern California regional location.
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.
