LOS ANGELES-A Los Angeles-based private investor has acquired a portfolio of five 100% NNN-leased corporate Goodyear Tire stores in three states for $12.2 million in an off-market transaction that was negotiated and closed in seven days, according to Ken Chasin and David Chasin, president and vice president, respectively, of Encino and Century City-based Pegasus Investments, which represented the buyer. David Chasin tells GlobeSt.com that the sale, which was a 1031 exchange for the buyer, closed at a cap rate of just under 8.75%.

Chasin says that the quick sale was remarkable in light of the amount of due diligence required and the complexity of the transaction, which involved two Goodyear stores that were not yet completed, five separate loans on five separate properties in three different states with two different banks, five different consents from the banks, and development agreements that the seller and the buyer had to agree upon to ensure that the unfinished buildings would be completed according to specifications. The sale had to close in seven days to meet a 1031 deadline.

The buyer assumed the mortgages on the properties via a wrap-around structure, and Pegasus is working with Verona Capital Markets Inc., a Los Angeles based real estate capital markets and advisory firm with whom it has a strategic relationship, to refinance the portfolio with long term, fixed-rate financing.

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