Hanley Closes Sale of LA Fitness in Chicago Area

The 37,000-square-foot facility at 620 North York St. was finalized last year. The tenant signed a 15-year primary lease with a number of option periods.
LA Fitness at 620 North York Street
LA Fitness at 620 N. York St. in Elmhurst, Ill.

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