IRVINE, Calif., March 26, 2020 – Faris Lee Investments, a leading retail advisory, and investment sales firm has completed the $16 million sale of an LA Fitness (City Sports Club) in the Bay Area, city of Hayward, CA. The property totals 41,000 square feet and is located at 2401 Whipple Rd in Hayward, CA.
Matt Brooks, Joe Chichester, and Nicholas Coo at Faris Lee Investments represented the seller of the property and sourced a private investor in need of diversifying his hospitality portfolio by acquiring single-tenant type properties. “The buyer recently purchased another LA Fitness in Massachusetts six months ago. This is his second LA Fitness acquisition,” said Brooks.
The property is located in a dense, infill location with excellent freeway accessibility (on/off ramp access) along Whipple Road from interstate 880 (220,000 VPD). The site also benefits from a dynamic trade area at the terminus of the San Mateo-Hayward Bridge Highway 92 (132,000 VPD), a major commuter thoroughfare connecting Hayward in the East Bay with Silicon Valley. The property sits within a dominant retail corridor of Hayward which featured national tenants such as Target, Home Depot, Lucky, Smart & Final, Lowe’s, Walmart, and In-N-Out.
Faris Lee’s marketing strategy focused on the strong demographics of the Bay Area infill location, the corporate guaranteed absolute NNN lease, and LA Fitness been the #1 revenue-generating health club in the industry, with revenue estimated at $2.1 billion. The property presented long term security and stability for an investor with zero landlord responsibility.
“Land in Hayward is no longer available for future commercial developments, which ensure the future success of this asset,” said Joe Chichester. “Also, the overall vacancy rate for retail in the trade area in under 2.5% reflecting a healthy retail market.”
The property was listed with three different listing agents prior to Faris Lee. However, none of them were able to deliver on the sale. “The key factor to the transaction was to find a buyer the seller was comfortable with, after several false starts with previous listing firms,” said Brooks. “Faris Lee marketing targeted LA Fitness-owners nationwide, private investors, 1031 buyers, and outside brokers. Ultimately, we identified a unique private investor comfortable with a large initial deposit and no financing contingency, despite putting debt on the acquisition.” “We were able to work around some of the seller’s pain points due to the buyer’s profile,” said Books.
About Faris Lee Investments: Faris Lee Investments is a national leading retail advisory and investment sales firm. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Through its recent strategic affiliation with X-Team Retail Advisors, a nationwide partnership of seasoned retail leasing experts, Faris Lee offers a fully integrated platform with disciplined expertise in landlord leasing, tenant representation, capital markets, and investment sales to maximize value for clients.
For more information, visit www.farislee.com