Faris Lee Closes Stockton Retail Deal

West Hammer sold the 15,314-square-foot multi-tenant retail strip center for $7.1 million. The 1031 exchange buyer was attracted to the asset’s location and the triple-net lease structure.

The Shops at Hammer & West, Stockton, Calif.
The Shops at Hammer & West, Stockton, Calif.

Faris Lee Investments has completed the $7.1 million sale of The Shops at Hammer & West, a 15,314-square-foot multi-tenant retail strip center in Stockton, Calif. The property traded at a cap rate of 6.5 percent and a price per square foot of $460.

“The buyer, who was in a 1031 exchange, valued the densely populated trade area, the property’s quality design and aesthetics, the triple-net lease structure that offers ease of management and some of the Pacific Rim tenants such as Jollibee,” Jeff Conover, senior managing director at Faris Lee Investments, said in prepared remarks. Conover represented the Newport Beach-based seller, West Hammer Properties. Vista Pacific Realty represented the buyer, Menlo Park-based Tian He Jian Real Estate USA Inc.

Located at 7840 West Lane on 1.8 acres, the property was built in 2008 and features highly visible monument signage. The asset houses seven tenants and is part of a larger development anchored by Walgreens and El Pollo Loco. Originally developed by West Hammer, the shopping center fronts Costco, providing favorable crossover traffic.

Break-up strategy

“This sale is significant as it represented the last piece of a five-parcel break-up strategy for West Hammer Properties,” added Conover. “This strategy enabled the seller to realize significant value by separating out the parcels of the greater neighborhood center and selling individually over the past several years.”

Faris Lee Investments also brokered the $13 million sale of two Greater LA area retail properties leased by Starbucks and CVS.

Image courtesy of Faris Lee Investments