Faris Lee Investments Completes $36 Million Sale of Four-Property Retail Portfolio Occupied by LA Fitness

IRVINE, Calif. – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed the $36 million sale of a four-property retail portfolio. Totaling 186,052 square feet, the portfolio’s assets are each fully occupied by LA Fitness with three properties located in Kentucky and one located in Tennessee. Faris Lee represented both the buyer, Arizona-based STORE Capital, a real estate investment trust, and the seller, a Kentucky-based private entity.
Faris Lee developed a strategic business plan to maximize the value of the portfolio. Specifically, the firm created a break-up strategy for one of the assets by separating it through a legal agreement from the rest of the retail center in which it was located. Additionally, Faris Lee uncovered over $3 million in additional value by conducting lease audits of each property to identify areas where net operating income could be increased. The team also coordinated a loan pay-off to defease the loan, and directed a confidential bid process for interested buyers.
“The success of this portfolio sale was in the disciplined and managed approach that we took to underwrite each asset, create a solution for the encumbered debt and defeasance, and create a go-to-market strategy that encompassed a private bid process,” stated Richard Chichester, president and CEO of Faris Lee Investments. “Through our focused approach we ensured a seamless and coordinated transaction, resulting in a successful outcome for both parties.”
Chichester, along with Matt Mousavi, Patrick Luther, and Tom Chichester of Faris Lee Investments managed the complex transactional process from pre-market to close.
Located in optimum areas for their respective regions, each of the properties have long-term lease structures with three leases positioned as absolute triple net allowing for no landlord responsibilities, and one lease structured as triple net, allowing for minimal landlord responsibilities.
Details on each of the properties in the portfolio are as follows:

  • 3001 Blake James Drive in Lexington (Palumbo), KY totals 61,350 square feet and is situated on 4.89 acres
  • 1028 Wellington Way in Lexington (Wellington), KY totals 43,478 square feet and is situated on 3.16 acres
  • 6013 Preston Highway in Louisville (Preston), KY totals 48,500 square feet and is situated on 3.9 acres
  • 2401 Edge o Lake Drive in Antioch, TN totals 32,724 square feet and is situated on 5.09 acres

The owner now benefits from assets occupied by LA Fitness. Founded in 1984, LA Fitness International, LLC is a privately held fitness club chain. It is one of the largest and fastest growing club chains in the fitness industry with more than 576 locations.


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