Two Pavilion Parcels Trade for $14M

CARSON, CA-Separate buyers have acquired two outparcels totaling nearly 68,000 sf at the one-million-sf South Bay Pavilion for $14 million, according to Faris Lee Investments. The properties that sold were a 32,921-sf 24 Hour Fitness and a 7,000-sf Chili’s restaurant on a 34,848-sf land parcel.

Faris Lee marketed the properties in a break-up strategy designed to maximize the property values, according to Richard Walter, president of the Irvine-based firm. Walter and Donald MacLellan, managing director at Faris Lee, represented the ownership of South Bay Pavilion, HREG Genesis Carson LLC.

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