Hanley Completes LA Fitness Sale
- Jul 13, 2017
Hanley Investment Group Real Estate Advisors has completed the sale of an LA Fitness in Montebello, Calif. A publicly-traded REIT acquired the single-tenant net lease retail property all-cash. LA Fitness has recently executed a new long-term lease extension.
Located at 2222 W. Beverly Blvd. on 3.1 acres, the 42,946-square-foot building is part of the Beverly Wilcox Village Shopping Center, home to Chase Bank, Popeyes, Subway and Western Dental. The facility features a swimming pool, sauna, spa, group fitness classes, personal training, modern cardio machines and a full indoor track.
28-year health club destination
Built in 1988, the property has been a health club destination for 28 years, with LA Fitness taking over a former Bally’s. LA Fitness has more than 690 locations in 32 states and Canada. Working out at a health club is the top sporting activity in the United States, according to the National Sporting Goods Association.
Situated at the signalized intersection of Beverly Boulevard and Wilcox Avenue, the shopping center is in an area with an average daily traffic count of 48,000 cars and more than 739,000 people within a five-mile radius of the property. With only two other fitness centers located within a three-mile radius of the property, the center has limited competition, according to Hanley Investment Group’s Executive Vice President Bill Asher.
“The growth of health club memberships nationwide has spurred the development of fitness centers from coast to coast, which has created outstanding real estate investment opportunities,” Asher said in prepared remarks. “This is a rare sale of a single-tenant LA Fitness in Los Angeles County. Only three single-tenant LA Fitness investments sold in Southern California since 2015, with Hanley Investment Group selling two of the three properties.” This is the second LA Fitness sale the firm has negotiated in the past three months.
Asher and company President Ed Hanley represented the seller, a private partnership based in Orange County, Calif., while the buyer was self-represented.
Image courtesy of Hanley Investment Group