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Faris Lee Closes Seven Net Lease Deals

Faris Lee Investments completed seven sales of fast food restaurant properties totaling $9.5 million in value. The restaurants are located in California, Texas, Nevada and Arizona. The transactions included the following:

Napadoson LLC purchased a ground lease for a 2,806-square-foot Jack in the Box in Highland, Calif. for $1.2 million;

A. Mashayekan Trust purchased a 2,857-square-foot Jack in the Box in Las Vegas for $1.84 million;

Ching Chan purchased a ground lease for a 2,654-square-foot Jack in the Box in Gilbert, Ariz. for $954,000;

Lucky Trust purchased a 1,691-square-foot Jack in the Box in San Antonio, Texas for $756,000;

Dolux Inc. purchased a 3,096-square-foot Jack in the Box in Temple City, Calif. for $1.66 million;

Shakoori Trust purchased a 3,316-square-foot ground lease for El Pollo Loco in Stockton, Calif. for $1.65 million;

JMNG Inc. purchased a 3,292-square-foot Burger King in Victorville, Calif. for $1.41 million.

The cap rates ranged from 6.4 percent to 7 percent. The buyers paid all-cash. Jeff Conover, senior managing director with Faris Lee, represented the sellers in the transactions.

“We’re seeing major cap rate compression right now for single tenant NNN-leased investments such as these fast food-occupied properties,” said Conover in a statement. “These properties are a great alternative for high net worth individuals seeking an investment that delivers more than the current less than one percent returns from bank CDs. These properties, even with low cap rates, can provide six to seven percent annual returns to the investor.”

HFF Places $48M Construction Loan for Garfield Park

Holliday Fenoglio Fowler L.P. (HFF) arranged a $48 million construction loan for Garfield Park, a to-be-construction multi-housing and retail building in Arlington, Va. The loan, placed with Wells Fargo Bank, features a three-year term.

When completed, in the summer/fall of 2012, Garfield Park will feature 149 residential units and 26,315 square feet of retail space. Ironwood Realty Partners is the developer behind the project.

Dan McIntyre, a director with HFF, arranged the financing transaction.

HFF also negotiated a sales transaction in Texas.

Amegy Bank sold Westover Village, a 113,803-square-foot neighborhood shopping center in Fort Worth, Texas, to Summit Realty Ventures LLC for an undisclosed price. The property is partially completed and includes 100,623 square feet of shop space and three pad parcels totaling 13,180 square feet. Current tenants at the center include Petco, Party City, JP Morgan Chase, Arby’s and McDonalds. A separately-owned Target anchors the property. Overall, Westover Village is currently 45 percent leased.

Doug Hazelbaker and Ryan Shore, of HFF, represented the seller in the transaction.

Investors Buy Kentucky’s Franklin Square for $16.5M

RJ Thieneman Realty Group, in partnership with Seay Properties, acquired Franklin Square, a 203,000-square-foot shopping center in Frankfort, Ky. for $16.5 million, from Charter Hall Group, an Australian REIT. The center’s anchors include Kroger, JC Penney, Office Depot, Pier I Imports and Hibbett Sports. The property also features Rite Aid, Starbucks, Radio Shack, Kay Jewelers and Chakeres Cinemas. The new owners plan to update and expand the center and remodel the Kroger store. The improvements are scheduled to be completed by early 2013.

Rich Frolik and Christian Williams, of CB Richard Ellis, represented the seller in the transaction. Wells Fargo provided the financing.

Other Notable Deals

DZ Realty LLC negotiated the sale of a Carl’s Jr.’s restaurant on Rainbow Boulevard in Las Vegas for $3.15 million. Carl’s Jr. has triple net lease on the property, which was constructed earlier this year. David Zacharia, of DZ Realty, represented the buyer in the transaction.

Kennedy Wilson and RECP/Urban Partners purchased 167 condos and 18,694 square feet of retail space at Santee Village in downtown Los Angeles. Developed by MJW Investments in 2004, Santee Village is a 780,000-square-foot property that features 445 residential units. MJW abandoned the project in early 2009 and the lender, the Patriot Group, subsequently went bankrupt. Since then, Santee Village had been taken over by the Bank of America.

CB Richard Ellis negotiated the sale of a 4,000-square-foot retail building in Houston, Texas to Beck’s Prime. Matt Keener, Russell Janicek and Mark Raines, of CBRE, represented the buyer in the transaction. Ryan West, Alex Makris, Jazz Hamilton and Andrew Kelson represented the seller.

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