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| Matthew Mousavi |
IRVINE, CA – Faris
Lee Investments, a leading retail advisory and brokerage services firm, has
completed the $7.64 million sale of Foothill Center, a 19,400-square-foot
multi-tenant shopping center located in the south Orange County city of Lake
Forest.
The center is 95 percent occupied with tenants including Baja Fresh,
Enterprise Rent-A-Car, and Wasabi Sushi.
Matthew Mousavi and Patrick Luther of Faris
Lee Investments represented the seller, The Mayfield Trust out of Los Angeles.
The China-based buyer represented itself in the transaction.
The sale price had
an in-place cap rate of 4.81 percent, a record low for a non-anchored retail
strip center sale in south Orange County according to CoStar.
“Faris Lee conducted an extensive marketing campaign to
target foreign investors, particularly the Asian investor,” noted Mousavi,
senior managing director with Faris Lee Investments. “We have a proprietary
database of Asian investors, brokers, asset managers, and other gatekeepers to
this highly active buyer pool.”
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| Patrick Luther |
Mousavi added: “We positioned the property as a unique
opportunity to acquire a self-contained strip center in a master-planned
community with upside potential through property improvements and leasing up of
the remaining space, as well as by bringing rents up to market rates as the
current leases expire within the tenant base.”
The firm managed a complicated loan defeasance on the
property. The existing 10-year conduit loan had a near-term maturity in 2016,
and either needed to be assumed or defeased at a high cost. Faris Lee was able
to source multiple buyers willing to assume the existing debt and defease the
loan. Ultimately, the buyer paid for the defeasance and all its related costs
and fees.
Built in 1990 and situated on 2.47 acres, the center is
located just north of Interstate 5 and Highway 241 at 20641-20671 Lake Forest
Drive.
Foothill Center is well-located in a high barrier to entry location that
not only has a strong surrounding residential population of more than 102,000
people within a 3-mile radius, but also has a sizeable daytime employee
population of an estimated 9,800 employees. The property’s location is also
complemented by other nearby national retailers including The Home Depot,
Target, Carl’s Jr., Regal Cinemas, and Staple
For a complete copy of the company’s news release, please
contact:
Darcie Giacchetto
Spaulding Thompson & Associates
949.278.6224
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