Faris Lee marketed the properties in a break-up strategydesigned to maximize the property values, according to RichardWalter, president of the Irvine-based firm. Walter and DonaldMacLellan, managing director at Faris Lee, represented theownership of South Bay Pavilion, HREG Genesis Carson LLC.

The 24 Hour Fitness sold for $11.25 million, andChili’s deal was a ground lease sale for $2.8 million.The fitness club is a newly constructed building at 945 DominguezAve. where the health club chain signed a 15-year lease and openedfor business in the winter of 2006. The buyer of the property was24 Fit LLC of Los Angeles, which was in a 1031 exchange and wasrepresented by Nicholas Coo of Faris Lee.

MacLellan notes that Faris Lee targeted 1031 exchange investorswith experience in the local market. The marketing strategy was toemphasize the density in the trade area, the fact that the area waslacking in high quality fitness facilities and that the centerwould draw more customers due to the nearby retail stores.