Saturday, August 24, 2013

IPA Sells Orange County, CA Apartment Community for $28 Million

The Arbors1100-1200 East Fairhaven Avenue, Santa Ana, CA

Stewart I. Weston

SANTA ANA, CA – Institutional Property Advisors (IPA), a multifamily brokerage division of Marcus & Millichap serving the needs of institutional and major private investors, has arranged the sale of The Arbors, a 160-unit apartment complex in Santa Ana, Calif. The $28 million sales price equates to $175,000 per unit.

            IPA senior director Stewart I. Weston and IPA associate director W. Michael Cavner advised the seller, Marcus & Millichap senior associate Daniel Blackwell represented the buyer, CW Investment Group LLC.

W. Michael Cavner
“The Arbors is an ideal candidate for a moderate renovation program to drive rents, taking advantage of the escalating rental and occupancy trends which most of OC is currently experiencing,” says Weston.

““This Class B asset is within close proximity to a myriad of Class A apartment communities, which both demonstrate renter demand for high-end product and our projections for post renovation asking rents.” Cavner added.

            The property was built in 1969 on 5.7 acres at 1100-1200 East Fairhaven Ave. in Santa Ana. It is composed of 144 one-bedroom/one-bathroom units and 16 two-bedroom/two-bathroom units.

Daniel Blackwell
The Arbors is a gated and lushly landscaped garden-style community enhanced by a myriad of fountains and water features. The amenity package includes an on-site fitness center, two laundry facilities, a basketball and activity court, barbecue areas and two swimming pools and spas.

Interior amenities feature modern open kitchens and pantries, ample closet space, individual and central air conditioning, gas ranges, 14-foot vaulted ceilings in select upstairs units, stainless-steel appliances in most units, and balcony or patio areas.

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

Gina Relva
 Public Relations Manager

(925) 953-1716

Faris Lee Investments Completes Record-Breaking $14.6 Million Sale of High Profile Retail Center in Monroe, LA

Pecanland Commons, 4209--4299 Pecanland Mall Drive, Monroe, LA

Richard Chichester
IRVINE, CA – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed the record-breaking sale of Pecanland Commons, a fully leased Target-anchored regional shopping center located at 4209-4299 Pecanland Mall Drive in Monroe, LA.

The center includes Ross Dress for Less, Bed, Bath & Beyond, Petco, and other notable tenants. Target was not a part of the sale.

 Built in 2003, Pecanland is situated on 8.6 acres and is located near the on/off ramp to Interstate 20, providing customers with easy access to the center. It is also near the Pecanland Mall, which is the largest mall in North Louisiana with more than 100 department and specialty stores.

Matthew Mousavi
 Richard Chichester, Matthew Mousavi and Thomas Chichester of Faris Lee Investments, along with co-broker, Beezie Landry of Stirling Property Group, represented the seller, a large TIC.  The buyer was TKG, a privately owned real estate company, based in Missouri, and was self-represented.

 At a sale cap rate of 7.6 percent, this transaction represented one of the lowest cap rates achieved  for a multi-tenant retail center in Louisiana for the last seven years per Costar records.

 “Faris Lee generated over 10 competing offers from private 1031 exchange buyers, as well as public and private institutional investors.
Tom Chichester
“ The sale price exceeded all expectations, and reflects a multi-stage bidding process whereby Faris Lee received offers throughout the marketing period, selected the highest bidders once receiving multiple offers from a range of buyer profiles, and went into multiple rounds of negotiations with the top bidders until the maximum price and best terms were achieved,” said Richard Chichester, president and CEO of Faris Lee Investments.

 The strong sale price was garnered despite some challenges including hesitancy from out-of-area buyers about the local market area, short-term rollover with the anchor tenants and uncertainty surrounding the tenants’ intent to renew their leases.

Beezie Landry
“Faris Lee’s marketing strategy was to overcome potential objections by highlighting the property’s position within the region which draws from a 30-mile radius,” commented Mousavi, managing director with Faris Lee.

 “We targeted a wide range of buyers, and generated offers from groups who have never owned retail assets in Louisiana.

“This diverse offer activity allowed us to maximize the price for the TIC ownership, shorten the time frame of the transaction and remove any financing contingency.

“Ultimately, we were able to successfully execute at a level of pricing that many thought was not possible, within a quick turn around. We are confident the new ownership will further enhance the center’s draw and appeal within this active retail corridor.“

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

Darcie Giacchetto
Spaulding Thompson & Associates