Thank you for sharing!

Your article was successfully shared with the contacts you provided.

VENICE, CA-The 75,327-sf Lincoln Rose Shopping Center has sold for $12.7 million in a deal that closed at a 2.61% cap rate, which Faris Lee investments calls it one of the lowest it has ever seen. Rich Walter, president of Irvine-based Faris Lee, says the deal was one of the most challenging the firm has ever brokered.

Walter explains that selling the center presented “a long list of potential obstacles,” including parking and environmental issues. The property, at 119-201 Lincoln Blvd., was built in 1965 and is 100% occupied by Sav-on, Big Lots, 99 Cent Store and Foot Locker.

Los Angeles-based Combined Properties bought the center from the Deutsche Family Trust, also based in L.A. Walter and Jeff Conover of Faris Lee Investments represented the seller, with Donald MacLellan of Faris Lee representing the buyer.

Walter notes that the parking lot was on a ground lease with reappraisal not due until 2007. The environmental issues included dry cleaner contamination and gas leaking from a corner gas station.

Selling the center called for locating a buyer with the vision to see the upside of the deal and with a history of successful retail center repositioning, according to Walter, who says that with low market rents and leases set to expire starting in 2006 to 2008, the center offered value-added upside.

Although the buyer will realize a low return for the first several years, the shopping center offered “a long-term play with a significant potential upside one to three years down the road,” Walter says. A number of prospective buyers were interested in the property, with the ultimate buyer winning the deal by being willing to commit quickly.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.