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| The Commons at Aliso Viejo Town Center, Aliso Viejo, CA |
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| Richard Chichester |
RVINE, CA, Feb.
10, 2014 – Faris Lee Investments, the nation’s largest retail-specialized
investment advisory firm, has completed a complex joint venture partnership
between New York-based American Realty Capital (ARC) and Irvine, Calif.-based
ValueRock Realty Partners, Inc. for the ownership of The Commons at Aliso
Viejo Town Center.
Built in 2004 and
situated on 14.54 acres, the 181,160-square-foot multi-tenant retail center is
fully occupied by Lowe’s, Michaels, and Tuesday Morning in the southern Orange
County city of Aliso Viejo.
Faris Lee
originally listed The Commons with owner CapLease, Inc. in mid-2013 and
generated multiple offers, none of which were acceptable to the seller.
During its review
of options for the owner, Faris Lee identified some of the challenges CapLease
was undergoing as an East Coast owner of a West Coast asset.
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| Dennis Vaccaro |
The firm
introduced CapLease to ValueRock as a potential joint venture partner
alternative to selling the property. During the negotiations for the new
ownership structure, CapLease was acquired by ARC, a full-service real estate
advisory firm.
“This joint venture structure was strategic,
uniquely complex, and born out of a disciplined review and approach to
maximizing the value of the asset, on both financial and operational levels to
meet the ownership’s goals and objectives,” said Richard Chichester,
president and CEO of Faris Lee Investments.
“To that end, we
explored and developed multiple scenarios including sale, recapitalization, and
partnership, and determined that with the right operating partner, the
long-term value would be best maximized through a joint venture.”
Dennis Vaccaro, senior managing
director with Faris Lee added: “Both CapLease and ARC are New York-based
companies. We were able to match ARC with ValueRock, an experienced,
locally-based operator and manager with other proven success operating south
Orange County retail properties.”
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| William H. Winn |
Under this new
joint venture structure, ValueRock will be taking the lead on operations and
lease negotiations, and will consider future strategies to reposition the asset
in order to maximize value through tenancy.
“We are pleased to partner with ARC and look
forward to working with them to add value to the property through proactive
management and leasing,” said William Winn, president & CEO at
ValueRock Realty Partners, Inc. “This property offers an intrinsic value in a
key market that has limited potential for future development.”
Valued at
approximately $50 million, The Commons is situated on 14.54 acres at 26501,
26053 and 26505 Aliso Creek Rd. and is located within Aliso Viejo Town Center,
a 300-acre, 700,000-square-foot regional shopping center and one of the most
dominant retail developments in Orange County.
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| Typical Trader Joes sales floor |
The center
includes a 20-screen Edward’s Stadium Theatre, Ralphs Fresh Fare, Trader Joe’s,
TJ Maxx, PetSmart, Barnes & Noble, Pier 1 Imports, and others.
Aliso Viejo
Town Center dominates the area, while also drawing from the surrounding
communities of Laguna Niguel, Laguna Hills, Mission Viejo, Lake Forest and
Laguna Beach.
Faris Lee has
emerged as an expert investment advisor in the south Orange County region and
is the most active retail sales firm in the area participating in nearly $1
billion in property transactions over the past 15 years.
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| The Shoppes at Aliso Viejo, CA |
In Aliso Viejo
alone, the firm has completed in excess of $100 million in retail property
transactions including the $39 million sale of The Shoppes at Aliso Viejo; a
multi-tenant property including Stadium Brewing Company; and a single-tenant
Walgreens property.
The firm is also currently marketing a PetSmart property
valued at $8.75 million.
The Commons at
Aliso Viejo is located in south Orange County, one of the most affluent regions
in Southern California with the average annual household income of more than
$119,000 within a five-mile radius.
The Commons at
Aliso Viejo is part of the successful Aliso Viejo master-planning community.
The city’s plan strictly limits commercial development, preventing any future
over development in the area.
Furthermore, the
Aliso Viejo Town Center was designed and developed to be the primary shopping
destination for the residents of Aliso Viejo and surrounding communities,
offering big-box, grocery, lifestyle, entertainment, restaurant, and shop space
in one convenient location.
For a
complete copy of the company’s news release, please contact:
Darcie Giacchetto
Spaulding Thompson
& Associates
949.278.6224
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