LOS ANGELES - Faris Lee, the nation’s largest retail-specialized investment advisory firm, has completed the record-breaking sale of Pecanland Commons, a fully leased Target-anchored regional shopping center located at 4209-4299 Pecanland Mall Drive in Monroe, LA. The center includes Ross Dress for Less, Bed, Bath & Beyond, Petco, and other notable tenants. Target was not a part of the sale.
Built in 2003, Pecanland is situated on 8.6 acres and is located near the on/off ramp to Interstate 20, providing customers with easy access to the center. It is also near the Pecanland Mall, which is the largest mall in North Louisiana with more than 100 department and specialty stores.
Richard Chichester, Matthew Mousavi and Thomas Chichester of Faris Lee Investments, along with co-broker, Beezie Landry of Stirling Property Group, represented the seller, a large TIC. The buyer was TKG, a privately owned real estate company, based in Missouri, and was self-represented.
At a sale cap rate of 7.6 percent, this transaction represented one of the lowest cap rates achieved for a multi-tenant retail center in Louisiana for the last seven years per Costar records.
“Faris Lee generated over 10 competing offers from private 1031 exchange buyers, as well as public and private. The sale price exceeded all expectations, and reflects a multi-stage bidding process whereby Faris Lee received offers throughout the marketing period, selected the highest bidders once receiving multiple offers from a range of buyer profiles, and went into multiple rounds of negotiations with the top bidders until the maximum price and best terms were achieved,” said Richard Chichester, president and CEO of Faris Lee Investments.
The strong sale price was garnered despite some challenges including hesitancy from out-of-area buyers about the local market area, short-term rollover with the anchor tenants and uncertainty surrounding the tenants’ intent to renew their leases.
“Faris Lee’s marketing strategy was to overcome potential objections by highlighting the property’s position within the region which draws from a 30-mile radius,” commented Mousavi, managing director with Faris Lee. “We targeted a wide range of buyers, and generated offers from groups who have never owned retail assets in Louisiana. This diverse offer activity allowed us to maximize the price for the TIC ownership, shorten the time frame of the transaction and remove any financing contingency. Ultimately, we were able to successfully execute at a level of pricing that many thought was not possible, within a quick turn around. We are confident the new ownership will further enhance the center’s draw and appeal within this active retail corridor.“
About Faris Lee Investments
Faris Lee Investments is a leading national real estate investment advisory firm, comprised of three (3) integrated business platforms; Faris Lee Investment Banking, Faris Lee Capital and Faris Lee Advisors. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee's senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, please visit www.farislee.com.