MELBOURNE, FL—Faris Lee Investments of Irvine, CA reports it has completed the $10-million pre-sale of a new construction 46,000-square-foot retail building here. The property is now fully occupied by retailers TJ Maxx and HomeGoods.
The 3.88-parcel at 2314 Remi Drive has a new 10-year corporate guaranteed lease with The TJX Companies, Inc. Matthew Mousavi and Patrick Luther of Faris Lee Investments represented an unnamed all-cash buyer who is a private investor based in South Florida. Mousavi and Luther also represented the seller, an unidentified Florida-based developer. The closing cap rate on the asset was 6.2%.
“This transaction involved a pre-sale strategy,” says 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 adds “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 says it is currently under contract on other portions of the project.