The new owner is California-based Excel Realty Holdings LLC, a group of investors who have sold previous portfolios to the likes of Kimco and New Plan, according to the lone brokerage firm in the transaction, Irvine, CA-based Faris Lee Investments. The seller was an entity of Majestic Realty, which still owns land in the immediate area and previously owned the land that is now the 350,000-sf Tanasbourne West Center, a Fred Meyer-anchored development located across the street from the LA Fitness.
Faris Lee managing director Donald MacLellan tells GlobeSt.com it arranged the sale three months prior to completion of the building, procuring a non-refundable commitment from the buyer as well as forward-basis financing. The buyer's cap rate is estimated at 7.5%. MacLellan says the fairly high cap rate is attributable to the both the early commitment and the fact that this is one of the first LA Fitness gyms to open in Oregon.
"While LA Fitness is really strong in California, this is the second to open in Oregon," says MacLellan.
Indeed, Faris Lee recently sold a 41,000-sf LA Fitness in Irvine, CA for $15.45 million. The sale marked one of the lowest cap rates (6.75%) and highest prices per-sf ($376) for a single-tenant fitness property in the United States.
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