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SAN JUAN CAPISTRANO, CA-The recent $29.4-million sale of the71,000-sf Marbella Plaza ranked among the highest prices per sfever paid for a market-anchored neighborhood retail center inOrange County and also represented one of the lowest cap rates,according to Irvine-based Faris Lee Investments. The upscale retailcenter at 31103-31113 Rancho Viejo Rd. sold to a 1031 exchangebuyer, Orange County-based Richmont Corp., at a cap rate of 5.75%and a price per sf of $415.

Despite the high price and low cap rate, the transactionpresented Faris Lee with some "marketing challenges" that couldhave undermined the sale, according to Rich Walter, president ofFaris Lee. The property is not anchored by a national grocerytenant, occupies a mid-block location and lots its second largesttenant when the tenant vacated the center during escrow.

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