Search
 

LA Fitness-Leased Building Trades for $213 Per SF

HILLSBORO, OR-Locally based Majestic Realty sells a 45,000-sf LA Fitness building near Highway 26 and Cornelius Pass Road to California-based Excel Realty Holdings for $9.6 million.

By Brian K. Miller | Updated on August 23, 2005

HILLSBORO, OR-A new 45,000-sf building built for and leased long-term to LA Fitness has changed hands for $9.6 million. The newly developed property is located at Highway 26 and Cornelius Pass Road.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.