Tuesday, July 2, 2013

Faris Lee Investments Completes $5.4 Million Sale of Freestanding Property Leased to DaVita Dialysis in Newport Beach, CA


New home of DaVita Dialysis at 4300 Von Karman Avenue, 
Koll Center Newport, Newport Beach, FL

IRVINE, CA, July 2, 2013 – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed a record-breaking, $5.4 million sale of a single-story, absolute NNN leased medical office building soon to be occupied by DaVita Dialysis, a Fortune 500 company and one of the country’s largest providers of dialysis.

Nicholas Coo
The 6,652-square-foot property is situated on .75 acres of land and is located within Koll Center Newport at 4300 Von Karman Avenue, Newport Beach, Calif.

Built in 1991 and owned by PRES since 2004, the freestanding property is a rare, self-parked freestanding property in Koll Center Newport.

The asset has excellent street frontage and visibility along Von Karman Ave. and is just two blocks from John Wayne Airport and near the 405, 73 and 55 freeways. There are more than 437,000 people living within a five-mile radius of the property with an average household annual income of $111,000.

Matthew Mousavi
Nicholas Coo, Matthew Mousavi, and Patrick Luther with Faris Lee Investments represented the seller, Irvine, Calif.-based The PRES Companies (PRES), a value-add investment real estate and services firm.

 The buyer was a private investor who was represented by Jack McNutt of Newmark Grubb Knight Frank.

The sale closed at a 4.95 percent cap rate which is the lowest cap rate ever for a DaVita-occupied property nationally. Additionally, with a price-per-square-foot of $811, this represents the highest price achieved for a net-leased property sold for more than $5 million ever in Orange County according to CoStar records.
Patrick Luther

 “After exploring all our options for 4300 Von Karman, PRES ultimately negotiated a 15-year lease with Davita,” said David Bonaparte, Managing Principal with PRES. “Once we were close to finalizing the lease, PRES engaged Faris Lee to develop a disposition and pricing strategy.

“Faris Lee then began marketing the property as a pre-sale opportunity while DaVita was still in its design stage.”

The seller’s goal with the pre-sale strategy was to take advantage of favorable market conditions.

David Bonaparte
DaVita is in the process of a major remodel that includes reconfiguration, high quality finishes, and other medical tenant improvements. DaVita is planning to move in later this year once completed.

“Overall, the complex marketing and escrow period was a seamless, collaborative effort aimed at communicating effectively with the buyer throughout the process. This transaction required a high level of competency in order to close the transaction before DaVita had completed its improvements,” said Coo.

Jack McNutt
Coo added: “Given the pre-sale variables, including a pending subdivision of the parcel, as well as remaining tenant lease contingencies, the strong pricing is a major achievement.”

 For a complete copy of the company’s news release, please contact:

Darcie Giacchetto
Spaulding Thompson & Associates

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