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SIGNAL HILL, Calif., May 11, 2021 /PRNewswire/ -- In one of the most complex retail transactions during COVID-19, Scott DeYoung and Jeff Conover of Faris Lee Investments completed the sale of Signal Hill Gateway in Long Beach to four different buyers for a total of $28.3 million, which is a 5.27% cap with a 5% vacancy factor. All sales closed within 75 days from beginning to end. The high-performing, triple-net urban infill community center was re-parcelized to achieve optimum pricing for the seller, Signal Hill Petroleum, which ultimately received 99.3% of Signal Hill Gateway's list price despite the pandemic.
Signal Hill Petroleum will retain ownership of a one-acre parcel within the shopping center that contains active oil wells and drill sites. The first-in-class oil operator will also stay on as Signal Hill Gateway's common area maintenance manager to ensure a smooth transition to the new buyers. Faris Lee helped the buyers and seller reach a common area maintenance (CAM) sharing agreement and amended the center's covenants, conditions, and restrictions (CC&R) to create efficiency for multiple landowners in this fully occupied, 100% national credit tenant shopping center.