Faris Lee Investments Completes $10 Million Pre-Sale of New Construction Retail Property Occupied by TJ Maxx and HomeGoods Near Orlando
Sale represents second transaction in multi-phase break-up strategy to maximize value for the seller/developer
IRVINE, Calif., – July 8, 2014 – (RealEstateRama) — Faris Lee Investments, a leading retail advisory and brokerage services firm, has completed the $10 million pre-sale of a new construction 46,000-square-foot retail building that is recently fully occupied by TJ Maxx and HomeGoods. The 3.88-acre property, located at 2314 Remi Drive in Melbourne (Viera), FL has a new 10-year corporate guaranteed lease by The TJX Companies, Inc.
Matthew Mousavi and Patrick Luther of Faris Lee Investments represented the all-cash buyer who is a private investor based in south Florida. Mousavi and Luther also represented the seller, a Florida-based developer. The closing cap rate on the asset was 6.2 percent.
“This transaction involved a pre-sale strategy,” said Mousavi, senior managing director with Faris Lee Investments. “Prior to the property completing construction, we procured more than 15 offers and selected a private, non-1031 exchange and all-cash investor who went non-contingent prior to the tenant opening its doors. Escrow closed immediately following the grand opening. The pricing achieved was extremely aggressive for a 10-year double net lease to TJ Maxx/HomeGoods.”
Mousavi added: “We targeted both the institutional and private buyers, ultimately exceeding the pricing that the institutional investors were offering by over 75 basis points by selecting a private buyer.”
The TJ Maxx/HomeGoods transaction represented the second transaction of a multi-phase break-up strategy employed by Faris Lee on behalf of the developer to offer the various parcels within the project to a wider buyer pool at more aggressive pricing levels. In 2013, Faris Lee completed a $6.1 million sale of a property occupied by Total Wine & More within the same center, and Faris Lee is currently under contract on other portions of the project.
The property is ideally positioned within a master-planned community that is situated just outside of Orlando. It is located at the southeast corner of Lake Andrew Dr. and Harnett Dr. It is adjacent to the 525,000-square-foot Avenue Viera shopping center, which includes Sports Authority, Kohl’s and Michaels, and is near the 336,000-square-foot Shoppes at Lake Andres shopping center which is anchored by WalMart Supercenter. Nearby retailers include Target, Petco, Pier One, Hobby Lobby, Ross Dress for Less, Old Navy, and others.
About Faris Lee Investments: Faris Lee Investments is a leading retail advisory and brokerage services firm. 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, visit www.farislee.com.
