Walter predicts that more retail properties will soon be hitting the market. “The extend and pretend era is wearing off,” he says. “As the retail market comes back, it benefits the servicer.”

What makes this portfolio unique, according to Jason Hull, managing director, head of commercial real estate at Trigild, is that the properties have never been for sale separately. “They represent opportunity,” he says. “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.”

Walter tells GlobeSt.com that as for timing of the sales, Faris Lee is treating them on a case by case basis. “There is an opportunity to break these up rather than sell as a portfolio so we’re opening up the market to a single transaction or a small portfolio sale,” he says. “We’ll go out with the net leased properties first, followed by the vacant properties.”

Faris Lee Capital, Faris Lee Investment’s financial arm, has been working closely with several lenders to negotiate and underwrite financing on the properties at the most favorable terms. “Based on our experience, we recognize how critical it is to make the financing process as smooth as possible,” says MacLellan. “That’s why we work well in advance with retail friendly capital sources. In this way we can decrease the escrow cycle and ensure the transaction comes to fruition.”

According to Walter, “Many of these sites are high-performing locations, which is why several of them have already been leased to new users.” He adds that “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.”

Walter tells GlobeSt.com that on the net lease deals, the properties that have been leased already to Forever 21 and Burlington Coat Factory, the buyer profile is likely the private market, passive owner. For the vacant properties, the buyer pool is more likely a sophisticated developer who is doing some redevelopment work, he says. “The developer will recognize that you can’t buy these properties in these locations at replacement cost. These properties are high-profile, high-traffic successful locations. They aren’t selling because the locations failed. They are selling because Mervyns as a company was overleveraged.”

Similarly, Walter says, “I think we’ll see owner/users actively looking at the vacant properties. Because the retail market is improving, there are a number of brands looking for expansion opportunities. These properties are ideal for one user. They can be split up so that the tenant takes one half and then leases the other half to a new tenant.”

The portfolio includes the following properties: Burlington Coat Factory totaling 89,201 square feet at 245 E. Magnolia Blvd. in Burbank, CA; Burlington Coat Factory totaling 83,731 square feet at 13092 Harbor Blvd. in Garden Grove, CA; Burlington Coat Factory totaling 81,282 square feet at 5517 Philadelphia St. in Chino, CA; Forever 21 totaling 76,550 square feet at 1305 W. Ave. P in Palmdale, CA; a 77,883-square-foot building located at 8100 E. Santa Ana Canyon Rd. in Anaheim, CA; a 77,934-square-foot building at 26732 Portola Pkwy. in Foothill Ranch, CA; a 62,523-square-foot building at 1600 N. H St. in Lompoc, CA; an 84,886-square-foot building located at 201 Town Center Dr. W. in Santa Maria, CA; a 78,360-square-foot building located at 200 Imperial Hwy. in Fullerton, CA; a 76,126-square-foot building at 3660 S. 16^th Ave. in Tucson; a 74,862-square-foot building at 2992 N. Alma School Rd. in Chandler, AZ; an 86,858-square-foot building located at 6505 E. Southern Ave. in Mesa, AZ; and an 81,009-square-foot building at 4255 W. Thunderbird Rd. in Phoenix.