Retail Deal Closes Despite Tenant Exits

TUSTIN, CA-The sale of a 7,324-square-foot multi-tenant retail property at the northwest corner of Newport Avenue and El Camino Real Street here closed at a 6.31% cap rate and $552 per square foot despite the exit of four of the center’s six tenants after the buyer arranged initial loan approval. According to president Rich Walter of Irvine-leased Faris Lee Investments, which represented the seller, three new tenants signed leases before the close of escrow after the Irvine firm extended escrow and recommended a new leasing team. The $4.05 million sale of the center is one of four recently closed retail sales in Orange and Los Angeles counties totaling $22 million in which Faris Lee was involved as either the listing agent, the buyer’s agent or both.

In the Tustin deal, Pasadena-based Tustin Lam Wong LLC bought the center from Makena Great American of Mission Viejo for $4.05 million in one of the highest prices per square foot paid for a multi-tenant retail property in Orange County in the first two quarters of this year. The seller was represented by director of advisory services Shaun Riley of Faris Lee and the buyer by Ching Louie of Louie Properties. Built in 2006, the property is at 14001 Newport Ave.