Irvine, CA – (Jan 5, 2021): In a continued effort to carefully evaluate opportunities for its clients, Faris Lee Investments has arranged the off-market purchase of Meridian Plaza, a multi-tenant retail center anchored by Dollar Tree in Cypress, CA.
The 28,500 square feet property fronts Katella Avenue, one of the primary east-west thoroughfares in the trade area, trafficked by more than 53,000 vehicles per day. The asset is comprised of several national tenants including Starbucks, Dollar Tree, H&R Block and Wienerschnitzel.
A 1031 exchange Orange County-based family office acquired the asset for $13 million. Nick Miller, Director, and Shaun Riley, Senior Managing Director represented the buyer while Thomas Kim and Jamie Park from Apple Tree Management represented the seller in the transaction.
Transacting a multi-tenant retail sale in the current market where nearly every property is experiencing some level of rent collection issues makes every multi-tenant retail transaction exceptionally challenging. With fewer lenders in the marketplace and appraisers making downward valuation adjustments to compensate for further Covid-19 risks, a lot more strategy on the brokerage end is needed to bring about a successful transaction.
“There is a clear insufficiency of supply for multi-tenant retail assets with no rent collection issue in today’s market,” says Nick Miller. “We have noticed a trend of investors willing to acquire at aggressive pricing for these types of assets, as long as collections are strong” To provide its client with a secure and income-producing investment, the acquisition search parameters consisted of targeting COVID-19 resistant multi-tenant strip center assets with minimal to no rent collection issues. Many of the offering submittals were off market properties. Faris Lee Investments continues to add value to its clientele but being active in matching buyers and sellers in hard-to-find off market transactions.
About Faris Lee Investments: Faris Lee Investments is a national leading retail advisory and investment sales firm. 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. Through its recent strategic affiliation with X-Team Retail Advisors, a nationwide partnership of seasoned retail leasing experts, Faris Lee offers a fully integrated platform with disciplined expertise in landlord leasing, tenant representation, capital markets, and investment sales to maximize value for clients.
For more information, visit www.farislee.com