The national commercial real estate brokerage company focused on retail, healthcare, automotive and education properties has announced the sales of a new single-tenant net lease investment occupied by LA Fitness Signature Club at the Waterview Town Center in Richmond, Texas.
RealSource’s Vice President of Investment Sales, Austin Blodgett, along with ParaSell, Inc., represented the seller, a private developer based in Houston. Blodgett and ParaSell also represented the buyer, a private partnership based in Texas.
“This is the first single-tenant LA Fitness property to go to market and sell post-Covid,” said Blodgett. “The last single-tenant LA Fitness to trade sold over 18 months ago in February 2020 in Hayward, California, at a cap rate of 6.62 per cent.”
Blodgett continues: “With a cap rate of 6.60 per cent, we feel that we have set a new post-pandemic benchmark for LA Fitness deals in the southwest going forward and a catalyst for a nationwide compression of cap rates for LA Fitness deals throughout the remainder of 2021 as investor demand increases for new single-tenant net lease properties occupied by LA Fitness.”
For the last 20 years, RealSource has served as a master broker for Fitness International, LLC, the operator of the brand names LA Fitness, LA Fitness Signature, Esporta Fitness, City Sports Club and Club Studio. With more than 700 locations across 27 states and Canada, Fitness International is one of the fastest-growing health club chains in the US.
The new construction, 47,000sq ft LA Fitness building is located on 4.93 acres at 19409 W. Bellfort Street, near the intersection of Waterview Meadow Drive and W. Bellfort Street in Richmond, just off Highway 99.
