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BUYER: JCFA Ranch, Bakersfield, Calif.
SELLER: Shops at Verandah Ltd.
PROPERTY: 11801 Palm Beach Blvd., Fort Myers
PRICE: $1.75 million
PREVIOUS PRICE: $3.71 million, December 2004
LAW FIRM ON DEED: Hill Ward Henderson, Tampa
PLANS, DESCRIPTION: A company, using the corporate identity of JCFA Ranch, with significant real estate holdings in California purchased a 6,245-square-foot bank building at the intersection of Palm Beach Boulevard and State Road 31 for 1.75 million. The purchase price equated to $280 per square foot of building space.
The key reason for that high price was the financial condition and position of the building's triple net tenant Wachovia, a Wells Fargo Co. Wachovia has a signed lease agreement on the property for next 16 years with 3% annual rental increases and several options to extend the lease. The four-year-old building is an outparcel in The Shops at Verandah, a Publix-anchored shopping center.
Ronald Schultz of Marcus & Millichap's Tampa office represented the seller, and Jeff Leggio of Grubb and Ellis ASU & Associates in Bakersfield, Calif., represented the buyer.
“The company was looking for triple-net investments similar to bonds,” Leggio says. “They felt that it was a great place to park some money during the economically turbulent times. The biggest factor they were looking for was the financial strength of the tenant. The buyer felt that Wells Fargo Wachovia has shown they had a future, and that they'd proven they could handle worst [of the economy]. Another big thing was diversification; they wanted real estate holdings outside of California.”
The purchase price equated to a 6.75% capitalization rate.
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