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NEW YORK CITY-A subsidiary of Millennium Partners signed a binding asset purchase agreement with the Sports Club Co. Inc. for seven of the company's sports clubs. The purchase price was $65 million.
Six of the clubs are company owned, while the Miami club is managed by Sports Club. Three of the clubs are located here. One is on the Upper East Side, another is on the Upper West Side and the third is in Rockefeller Center. The other holdings are in Boston, San Francisco, Miami and Washington, DC.
The Sports Club Co. has 30 days to elect to retain the Sports Club/LA–New York at Rockefeller Center which would result in an upward adjustment in the sales price. Following the transaction, Sports Club will continue to own and operate the Sports Club/LA in Los Angeles, the Sports Club/LA in Orange County and the Sports Club/LA in Beverly Hills.
Millennium, through its affiliates, is already the largest shareholder in the Sports Club Co. Its fitness facilities anchor five mixed-use complexes developed by Millennium around the country. According to company officials, Millennium Partners will bring "significant capital to the new organization to enhance the existing facilities and implement new programs at the clubs."
"We intend to build on this foundation, including expansions of the clubs in San Francisco, Washington and Boston," says Christopher M. Jeffries, principal and founding partner of Millennium Partners. "The remaining clubs will also receive significant capital investments to update their look and feel." Plans include creating a dedicated Mind/Body Center within each club to expand yoga and Pilates programs.
Millennium Partners has hired Dr. Art Curtis to serve as the CEO of Millennium's new sports club operating company that will be based in Boston. Smaiyra M. Million will serve as chief operating officer and Nicholas R. Winter will serve as managing director, Private Equity at Millennium. The locally headquartered firm has developed more than $3 billion of mixed-use real estate across the US.
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