Wednesday, March 5, 2014

Faris Lee Investments Completes $36 Million Sale of Four-Property Retail Portfolio Occupied by LA Fitness

LA Fitness Wellington

Richard Chichester

IRVINE, CA– Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed the $36 million sale of a four-property retail portfolio.

 Totaling 186,052 square feet, the portfolio’s assets are each fully occupied by LA Fitness with three properties located in Kentucky and one located in Tennessee.

Faris Lee represented both the buyer, Arizona-based STORE Capital, a real estate investment trust, and the seller, a Kentucky-based private entity.

 Faris Lee developed a strategic business plan to maximize the value of the portfolio. Specifically, the firm created a break-up strategy for one of the assets by separating it through a legal agreement from the rest of the retail center in which it was located.

Additionally, Faris Lee uncovered over $3 million in additional value by conducting lease audits of each property to identify areas where net operating income could be increased. The team also coordinated a loan pay-off to defease the loan, and directed a confidential bid process for interested buyers.

Matt Mousavi
 “The success of this portfolio sale was in the disciplined and managed approach that we took to underwrite each asset, create a solution for the encumbered debt and defeasance, and create a go-to-market strategy that encompassed a private bid process,” stated Richard Chichester, president and CEO of Faris Lee Investments.
 “Through our focused approach we ensured a seamless and coordinated transaction, resulting in a successful outcome for both parties.”

Chichester, along with Matt Mousavi, Patrick Luther, and Tom Chichester of Faris Lee Investments managed the complex transactional process from pre-market to close.

Located in optimum areas for their respective regions, each of the properties have long-term lease structures with three leases positioned as absolute triple net allowing for no landlord responsibilities, and one lease structured as triple net, allowing for minimal landlord responsibilities.

Details on each of the properties in the portfolio are as follows:

Tom Chichester
·         3001 Blake James Drive in Lexington (Palumbo), KY totals 61,350 square feet and is situated on 4.89 acres

·         1028 Wellington Way in Lexington (Wellington), KY totals 43,478 square feet and is situated on 3.16 acres

·         6013 Preston Highway in Louisville (Preston), KY totals 48,500 square feet and is situated on 3.9 acres

·         2401 Edge o Lake Drive in Antioch, TN totals 32,724 square feet and is situated on 5.09 acres

The owner now benefits from assets occupied by LA Fitness. Founded in 1984, LA Fitness International, LLC is a privately held fitness club chain. It is one of the largest and fastest growing club chains in the fitness industry with more than 576 locations.

For a complete copy of the company’s news release, please contact:
Darcie Giacchetto
Spaulding Thompson & Associates


$3.5 Million Mixed Use Development planned Adjacent to the new Lake Mary SunRail Station in Lake Mary, FL

SunRail Station Platform rendering, Lake Mary, FL

LAKE MARY, FL --- Chris and Dana Mahnken of Lake Mary plan to develop a 32,000 square foot office and retail building directly across from a new 200+ unit luxury apartment project on  E. Crystal Lake Ave. in Lake Mary adjacent to the planned Lake Mary SunRail Station platform.

Chris Mahnken said Station Pointe at Lake Mary will accommodate a coffee shop, sandwich shop, drug store, dry cleaner and beauty salon, along with offices for lawyers, doctors and other professionals who can serve commuters on the $1.2 billion commuter rail line.

Rick Bavek
Mahnken said construction of Station Pointe should start in 2015.

The first SunRail leg is planned to open in May from DeBary to downtown Orlando and points south.  Eventually, SunRail will link communities from DeLand in Volusia County to Poinciana in Osceola County.

Rick Bavec, who heads his own realty firm at Lake Forest by Sanford has been named director of leasing for Station Pointe at Lake Mary. 

Bavec said pre-leasing has started with very strong interest, and he expects to pre-lease most of the space before construction starts.

“We’re getting a lot of interest in Station Pointe from doctors, lawyers and accountants looking to expand their downtown operations with a branch office in Lake Mary,” Bavec said.

“In most communities worldwide where commuter lines like SunRail have been developed, the stations have spurred dramatic growth and development of commercial as well as residential opportunities, we are seeing this happening now in Lake Mary,” Bavec said.

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

Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142,