Faris Lee Arranges Sale of Two Ground Leases Totaling $6.5 Million

by Alex Tostado

Irvine, Calif. — Faris Lee Investments has arranged two ground leases for $6.5 million. The first deal was for a Starbucks Coffee in Riverside, California. A private developer based in Idaho sold the ground lease for $4.3 million to an undisclosed buyer. Starbucks occupies the space with a new 20-year lease, which includes three 10-year extension options. The property is located at 1303 University Ave., near the University of California-Riverside. Don MacLellan, Rick Chichester and Phil Ramming of Irvine-based Faris Lee, along with Cypress Retail Group, represented the seller in the transaction.

The second deal was a $2.2 million sale of a property leased to McDonald’s in Mesa, Arizona. McDonald’s has occupied the space since 1994. MacLellan, Chichester and Ramming represented the seller, Macerich REIT, in the transaction. An undisclosed buyer purchased the ground lease at a 3.8 percent cap rate.

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