Sale Sets New Benchmark for LA Fitness Deals

A single-tenant net lease investment occupied by LA Fitness Signature Club at the Waterview Town Center in Richmond, TX recently sold for an undisclosed purchase price. The sale achieved a cap rate of 6.6 percent with less than a full primary lease term.

RealSource’s 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, CA, at a cap rate of 6.62 percent. With a cap rate of 6.6 percent, 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.”

The new construction 47,000-square-foot LA Fitness building is located on 4.93 acres at 19409 W. Bellfort St. near the intersection of Waterview Meadow Drive and W. Bellfort Street off of Highway 99.