IRVINE, CA-A 1031 exchange investor has acquired a fully occupied 60,000-sf portion of the Marketplace at Ontario Mills for $18 million in a pre-sale before the completion of construction, according to Irvine-based Faris Lee Investments. The space is occupied by four furniture tenants: CORT Furniture Rental, Ortho Mattress, Bassett Furniture and Easylife Furniture.
According to Jeff Conover, senior managing director for Faris Lee Investments, marketing for the center commenced upon grading of the project. This pre-sale strategy for the property allowed escrow to close upon completion of construction, allowing the developer to immediately take its profit and move forward on other shopping center projects, he explains.
Conover represented the seller and developer of the center, Newport Beach, CA-based Peninsula Retail Partners. The 1031 exchange buyer was Los Angeles-based Las Vegas Land & Development Co.
The Marketplace is located at the 15 Freeway and Foothill Boulevard, at 4155-4195 Inland Empire Blvd. and 750 N. Ferrari Lane. Conover says that Faris Lee targeted 1031 exchange buyers and garnered 12 offers on the center.
Conover says that Faris Lee's marketing emphasized the center’s ease of management, new NNN leases of national and credit tenants and strong customer draw from its key location near the Ontario Mills Outlet Mall, as well as its location within a larger center that is co-anchored by Sam’s Club and Staples. Faris Lee Capital, Faris Lee’s financing arm, assisted in sourcing a private bank from Long Beach to provide financing for the buyer during the subprime mortgage meltdown and the recent bankruptcy announcements of other furniture retailers.
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