REIT Acquires 7 Fitness Centers for $94M

The bundle of properties, which will host EoS Fitness locations, sold for upwards of $94 million. Image courtesy of SRS Real Estate Partners

Developer Barclay Group has sold a portfolio of seven commercial properties to a publicly traded REIT for approximately $94 million. Five of the assets, all of which will be single-tenant EoS Fitness locations, are situated in Arizona, with the remaining two located in Florida. The buyer’s identity could not immediately be confirmed.

Four of the properties in Arizona are former grocery stores that are being renovated to host EoS Fitness locations. Those locations include 9101 E Baseline Road and 27 40 E University Road, both in Mesa and totaling 57,803 square feet and 51,716 square feet, respectively. The other two Arizona assets, 750 E Guadalupe Road in Tempe and 11275 E Via Linda Road in Scottsdale, measure 63,843 square feet and 46,039 square feet, respectively.

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The three remaining assets, 20722 E Riggs Road in Queens Creek, Ariz., 5891 South Gornto Lake Road in Riverview, Fla., and 2194 Argosy Drive in Lutz, Fla., are new builds, each totaling 40,350 square feet. All of the properties have 15-year, corporate-guaranteed, triple net leases in place with scheduled rent increases. In a statement, SRS Senior Vice President & Market Leader Tyler McRae, one of EoS’ leasing representatives in the deal, said that the firm worked with the tenant to select the sites for four years.

Barclay Group, which worked with EoS Fitness, SRS and Echelon to identify and purchase the properties, has partnered with EoS Fitness on more than 25 locations in the U.S. The gym has a half-dozen branches in Phoenix, including at the 1.2 million-square-foot CityScape mixed-use complex, with more locations in surrounding areas like Avondale, Chandler, Glendale and Scottsdale.

Two Fort Lauderdale, Fla.-based members of SRS Real Estate Partners’ capital markets team, Vice President & Market Leader Patrick Nutt and Senior Vice President William Wamble, represented the seller. McRae, alongside Phoenix-based Echelon Realty Advisors were responsible for leasing the assets on behalf of EoS Fitness. Nutt, in prepared remarks, said that the deal shows that there is institutional interest in the fitness retail sector.