IRVINE, CA - Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed the sales of two free-standing, single-tenant retail properties that are occupied by My Big Fat Greek Restaurant in the Southern California cities of Temecula and LaVerne. The properties were sold in a pre-sale strategy prior to construction being complete for a total of $3.7 million. Both properties offered 10-year, absolute, NNN leases with 10 percent rental increases every five years.
Jeff Conover, senior managing director, with Faris Lee Investments represented the seller/developer of the properties, California-based Bear Industries. Both properties were purchased for all-cash and closed at a 7 percent capitalization rate.
My Big Fat Greek Restaurant currently has 19 locations with a total of three sites in California. The chain plans on expanding into other locations in months to come. The restaurant brings together a fusion of Mediterranean foods and also features staff performing traditional Greek dances, fire blowers and plate breaking.
It was necessary to educate potential buyers on the strength of the tenant during Faris Lee’s marketing process. Although the restaurant tenant is successful in other states, it is a relatively new concept in Southern California. Additionally, both properties were undergoing tenant improvements and were not open for business when Faris Lee was marketing them.
“In addition to communicating information on the tenant and its restaurant concept, our marketing strategy was to target the Asian private capital buyers and the Asian broker community,” said Conover. “We are currently seeing a heavy influx of Pacific Rim capital investment into Southern California markets.”
The buyer for the Temecula property was a private investor from mainland China who was represented by Christie Kim, and the buyer for the LaVerne property was a Chinese private investor from Arcadia, Calif. who was represented by Tony Hsu of RE/MAX.
The Temecula asset totals 3,400 square feet and is situated on .73 acres. It was built in 2010 and rehabbed in 2012 for the tenant. Located at 26460 Ynez Road, the property is adjacent to the 1.14 million-square-foot regional Mall, Promenade Temecula. It has major street frontage on the heavily travelled Ynez Road and is adjacent to Costco. There are more than 436,000 people within a 20-minute drive of the restaurant and more than 106,000 vehicles per day that pass the restaurant at the intersection of Ynez Road and Winchester Road. Temecula is a city in southwestern Riverside County with a population of more than 100,000. The city is bordered by Murrieta on the northwest and Pechanga Indian Reservation on the south.
The LaVerne asset totals 4,700 square feet and is situated on .5 acres. It was built in 1977 and rehabbed in 2013 for the tenant. Located at 1401 Foothill Blvd., the property is an outparcel to the LaVerne West Shopping Center which is anchored by CVS/Pharmacy and Wells Fargo Bank. My Big Fat Greek Restaurant is located at the intersection of Foothill Blvd. (Route 66) and Wheeler Ave. which sees 42,600 vehicles per day and is near the on/off ramp of Interstate 210. Nearby retail tenants include SteinMart, Bank of America, LA Fitness, Starbucks, AutoZone, Ross and others. LaVerne is a small, affluent community in Los Angeles County with more than 30,000 residents. It is located about 30 minutes from downtown Los Angeles.
About Faris Lee Investments
Faris Lee Investments is a leading national real estate investment advisory firm, comprised of three (3) integrated business platforms; Faris Lee Investment Banking, Faris Lee Capital and Faris Lee Advisors. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee's senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, please visit www.farislee.com.