Hanley Closes Sale of LA Fitness in Chicago Area
- Apr 27, 2017
Hanley Investment Group Real Estate Advisors closed the sale of a new 37,000-square-foot single-tenant net-lease building at 620 North York St. in Elmhurst, Ill. The facility, finalized in late 2016, operates as a health club and is occupied by private retailer LA Fitness.
Executive Vice President Eric Wohl and Associate Austin Blodgett of Hanley Investment Group represented the seller, a Chicago-area development company. The buyer, a publicly traded REIT, used in-house representation.
The single-tenant facility is situated on 4.8 acres at a highly visible intersection adjacent the off-ramp of the Interstate 290/York Road exit and is one block away from Mariano’s Fresh Market, as well as several quick-serve restaurants. The area is served by other national and regional retailers such as Starbucks, Bentley’s PetStuff and Comcast.
“The sale of single-tenant health clubs has become a much more viable retail investment alternative in today’s market,” said Blodgett in a prepared statement. “Private and institutional investors are seeing the value and security of the income stream from a single-tenant health club, especially those leased to LA Fitness, one of the most successful private retailers in the United States.”
LA Fitness opened for business in November 2016 and has a 15-year primary lease term with a number of option periods for the property.
Image courtesy of Hanley Investment