Faris Lee Triple Net Buy Sees Lowest Florida Cap Rate Since 2008

JACKSONVILLE, FL—In a move that demonstrates an appetite for well-located single-tenant properties, Faris Lee Investments has snapped up a building that's home to Ruby Tuesday for $2.3 million. The property was a triple-net leased free standing building.

Matt Mousavi and Rich Walter of Faris Lee Investments represented the seller, Tennessee-based Ruby Tuesday, as well as the cash buyer, New Jersey-based Schiff Enterprises. The closing cap rate was 6.88%—the second lowest for a non-fast food restaurant in Florida since Aug. 2008, according to Costar. It’s also the lowest cap rate for a non-fast food restaurant achieved in Duval County since April 2008.

“This property offered the buyer a new 15-year absolute triple-net corporate lease in a sale-leaseback opportunity,” Mousavi said in a statement. “We are executing these sales at record-breaking cap rates and buyer interest continues to be strong from all parts of the country, and from the various buyer profiles.”

Built in 2002, the Ruby Tuesday building spans 5,612 square feet and sits on 1.21 acres. The asset is adjacent to a Walmart Supercenter, along with a Hampton Inn and Courtyard Marriott. The surrounding retail corridor is also home to Lowe’s, The Home Depot, Target, Regency Commons, and the Regency Square Mall.

Paul Stasaitis, senior managing director at HFF, tells GlobeSt.com he expects the financing for retail deals to get easier in 2012. “If you look at where we are now compared to 12 months ago, there’s more stability—or at least it’s perceived that the worst is behind us,” he says. “”The worst that anyone would assume going forward is that the economy stays where it is—and that’s a minority view.”