Irvine-based Faris Lee Investments is marketing a portfolio of 13 former Mervyns properties throughout Southern California and Arizona, including four in Orange County. Faris Lee was selected by Trigild, the court-appointed receiver and management company for the distressed portfolio, which totals more than 1 million square feet of retail space.
“What makes this portfolio unique is that these properties have never been for sale separately, so they represent a great opportunity,” said Jason Hull, managing director and head of commercial real estate at Trigild. “Faris Lee has the expertise to position them as single assets, plus they have a deep national buyer pool for both investors and users, which will be key to gaining the most value for the portfolio.”
Four of the properties are currently leased, one by Forever 21, three others by Burlington Coat Factory. The four Orange County properties are in Garden Grove, Anaheim, Foothill Ranch and Fullerton.
“Many of these sites are high-performing locations, which is why several of them have already been leased to new users,” said Richard Walter, president of Faris Lee. “As an investment, it’s a great opportunity to acquire a long-term net leased opportunity in an excellent retail location, and the vacant sites are very attractive to either users or value-added investors.”
As an added incentive to potential buyers, Faris Lee’s financial branch, Faris Lee Capital, is working with lenders to negotiate and underwrite financing on the properties to work out the most favorable terms.
“Based on our experience, we recognize how critical it is to make the financing process as smooth as possible. That’s why we work well in advance with retail friendly capital sources,” said Donald MacLellan, senior managing director at Faris Lee. “In this way we can decrease the escrow cycle and ensure the transaction comes to fruition.”
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