BALDWIN PARK, CA—A 24,262-square-foot retailproperty has appreciated 25% in the three years due to theimproving market. Gershman Properties purchasedthe 13-tenant site three years ago for $9.7 million, and has soldthe property to Baldwin Park Plaza 11 for $12.7million.

“This property was one of the most in demand properties in termsof total inquiries of all of the properties that we have listedthis year,” Rick Chichester, president and CEO ofFaris Lee Investments, tells GlobeSt.com.Chichester represented the seller in the transaction along with hisFaris Lee Investments colleagues Matt Mousavi andTom Chichester. Newmark Grubb KnightFrank represented the buyer in the transaction.

The seller's team received north of 140 inquiries on theproperty. In the end, they received six total offers, and choseBaldwin Park Plaza 11 because they were completing a 1031exchange that perfectly aligned with the purchase. “Itreally was an ideal situation for both the buyer and the seller.The buyer is a very sophisticated well-known real estate investorthat knew the asset extremely well,” says Chichester. “In terms ofthe deal structure, the buyer was in a 1031 exchange and the termsmatched up ideally with the ownership's structure on debt andequity. The seller want to assume the existing debt because itmatched their exchange debt, and the equity they brought to thetransaction also matched their exchange equity requirement. It wasalmost a perfectly aligned transaction. We have experienced thisbefore, but not often. To get the debt and equity structure on boththe buyer and the seller sides to match up is rare.”