Property breaks sales record of $616 per square foot, the highest price for a Single-tenant drug store building for the area since 2007
Victorville, CA – Faris Lee Investments, the nation’s largest retail-specialized investment sales and advisory firm, has completed the $7.95 million sale of a 12,900 square foot single tenant property occupied by CVS Pharmacy in Victorville, Calif. Built in 2010 and featuring a long-term absolute NNN 25-year lease with CVS, the sale set a record of $616 per square foot which is the highest price for a single tenant drug store building in the Inland Empire since 2007.
Nick Coo and Dennis Vaccaro of Faris Lee Investments represented the seller, NMC El Evado LLC from Woodland Hills, Calif. The buyer was 14426 Palmdale Rd. LLC from Riverside, Calif. who was represented by Hamid Soroudi and Kimberly Roberts Stepp of Charles Dunn Company. The property closed at a 6.5 percent cap rate.
“This sale is significant because it proves that there is a high level of interest in acquiring quality assets with a credit tenant on a long term lease,” said Vaccaro. “The interest in this transaction was strong despite the fact that the CVS lease is flat for the entire 25-year initial lease term.”
According to Coo, Faris Lee worked with the local brokerage community and matched up the deal with an apartment broker representing an apartment owner who was in a 1031 exchange.
“The property garnered full asking price,” said Coo. “We also worked closely with the buyer’s lender and appraiser in order to ensure the loan was approved and funded on time. Given the fact that the Inland Empire’s recent sale comparables did not support the sale value, it was critical that we expand the sales comparables parameters and specifically walk the appraiser through the future growth projections in the area.”
The property is situated on 1.6 acres and is located at a signalized intersection on the northwest corner of Palmdale Road (Hwy 18) and El Evado Road. The I-15 freeway serves as the main arterial into Las Vegas from Southern California, while the 395 serves as a main north/south arterial through California, Nevada, Oregon, and Washington. The property’s location has a traffic count in excess of 46,000 cars daily. That number is expected to increase as the Palmdale Rd. corridor continues to develop as a result of its strategic location between Interstate Highway 395 and the I-15 freeway.
The surrounding area features several commercial retail developments including the 815,000 square foot Desert Plaza Center and the 60 million square foot Southern California Logistics Center.
$5.65 million sale of a fully occupied 14,500 square foot retail property located at the entrance of Promenade Temecula, a 1.14 million square foot regional mall in Temecula, Calif.
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, the Faris Lee’s leadership 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.