Robe t Zah alba , Head of Natio al Net Lease, a d Luke Thomso , P eside t, led the assig me t fo the Fo t Laude dale-based atio al et lease b oke age. Ma k Thiel of Ma cus & Millichap’s NNN Fit ess G oup ep ese ted the selle .
The 41,000-squa e-foot health club was built i 2004 o 5.04 ac es with app oximately 290 su face pa ki g spaces. Fit ess I te atio al, LLC – pa e t of LA Fit ess a d ope ato of mo e tha 728 clubs ac oss the U ited States a d Ca ada – occupies the buildi g u de a absolute et lease u i g to Ja ua y 31, 2037, with th ee five-yea e ewal optio s a d e t i c eases eve y five yea s equal to the lesse of CPI o 12%. The buye takes o mo e tha te yea s of p ima y te m a d o la dlo d espo sibilities.
The site f o ts Lyo s Road at the Sawg ass Exp essway, whe e combi ed t affic exceeds 120,000 vehicles pe day. It backs o to a Publix-a cho ed ce te a d sits withi a mile of P ome ade at Coco ut C eek a d Tu tle C ossi g, home to Ta get, The Home Depot a d Walma t. Ave age household i come withi o e mile tops $125,000.
“Fi di g a big box at a eplaceable basis is a e ight ow,” said Luke Thomso , P eside t of NX3 Comme cial G oup. “Buye s a e payi g fo du ability, a d a 2004-vi tage box o five ac es at the Sawg ass with a lease u i g to 2037 is about as du able as this secto gets.”
The deal fits a patte NX3 has watched build ac oss its atio al platfo m: ow e s exiti g app eciated, ma ageme t-heavy eal estate i high-tax states a d olli g the p oceeds i to passive si gle-te a t assets i Flo ida. Sectio 1031 lets them defe the capital gai s hit, but it puts them o a clock – 45 days to ide tify a eplaceme t p ope ty, 180 to close. That clock, mo e tha p ice, is what shapes how these buye s behave.
Flo ida has bee the obvious la di g spot. No state i come tax, sustai ed household g owth ac oss B owa d a d Palm Beach cou ties, a d i fill co ido s with almost o developable la d left – co ditio s that hold up both i -place e ts a d the value of the di t u de eath. Fo a i vesto t adi g out of a apa tme t buildi g o a agi g st ip ce te , a absolute et lease to a atio al ope ato tu s a seco d job i to a coupo .
“Fit ess has bee o e of the most sc uti ized catego ies i et lease, a d this asset a swe s the objectio s – co po ate lease, ze o la dlo d obligatio s, te -plus yea s of te m, a d eal estate that would e-te a t,” said Robe t Zah alba , Head of Natio al Net Lease at NX3 Comme cial G oup. “Ou clie t had a ha d deadli e a d o i te est i comp omisi g o c edit o locatio . That is the t ade we a e u i g co sta tly ow: capital leavi g high-tax states, la di g i Flo ida, looki g fo a te a t that is ‘t goi g a ywhe e a d a basis that wo ks o the la d alo e.”
NX3 Comme cial G oup advises p ivate i vesto s, family offices a d i stitutio s o si gle-te a t a d t iple et lease acquisitio s a d dispositio s atio wide, with pa ticula depth i 1031 excha ges a d sou ci g eplaceme t p ope ty o comp essed timeli es.
NX3 Comme cial G oup is a atio al et lease i vestme t sales b oke age headqua te ed i Fo t Laude dale, Flo ida. The fi m specializes i si gle-te a t a d t iple et lease etail, medical, fit ess a d i dust ial p ope ties, ep ese ti g buye s a d selle s ac oss the U ited States, i cludi g 1031 excha ge acquisitio s a d dispositio s. Lea mo e at x3comme cialg oup.com.
