IRVINE, CA-The sale of a two-tenant property within the Promenade Mall in Temecula for $480 per square foot at an 8.25% cap rate and a $425-per-square-foot sale in Paramount at a sub-7% cap rate illustrate that stabilized properties in good locations still command top prices, according to a broker from Faris Lee Investments who arranged the deals. In the Temecula sale, all-cash 1031 Exchange buyer R&R Real Properties of Los Angeles bought a 10,000-square-foot retail property occupied by Verizon Wireless and the Vitamin Shoppe from Beverly Hills-based Plaza Temecula LLC for $4.8 million; in Paramount, a Los Angeles-based family trust acquired an 11,841-square-foot retail property fully occupied by Sally Beauty Supply, Payless Shoesource, West Coast Dental and Fashion Q for $5 million.

The Temecula sale represented the highest price per square foot for a multi-tenant retail property to be sold in the City of Temecula for the past two years, according to senior managing director Jeff Conover and president Richard Walter of Faris Lee, who represented the seller. The higher cap rate reflected the short term of three years remaining on each lease, meaning the buyer took on some additional risk, according to Conover and Walter.

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