IRVINE, Calif., September 29, 2015 – Faris Lee Investments, a leading national retail advisory and investment sales firm, has completed the $51 million sale of a freestanding, 145,000-square-foot, single-tenant retail property NNN-leased to Life Time Fitness in Summerlin, NV, an affluent submarket of Las Vegas. This sale is the highest price paid for a single-tenant retail asset this year on a national basis.
Matthew Mousavi and Patrick Luther of Faris Lee Investments represented the undisclosed buyer, as well as the institutional seller.
Life Time Fitness, a private high-end fitness center chain with 2014 revenues of $1.29 billion, recently signed a new 20-year absolute NNN corporate-guaranteed lease with scheduled rental increases during the term. The Summerlin facility is a top performer within the chain of more than 140 locations. The Class A property features an expansive selection of premium amenities and services in a resort-like setting including indoor and outdoor swimming pools, basketball and racquet courts, personal training, group fitness programming, child care centers, cafes and spas. It also includes a multi-story parking structure.
“We marketed Life Time Fitness as a unique, generational asset in a prime, irreplaceable location within Summerlin, the highest income submarket of Las Vegas and a highly affluent master-planned community,” said Mousavi. “We also highlighted the physical attributes of the building itself as well as the tenant’s extremely high membership numbers. The lease itself was well-suited for a wide range of investors and we received interest from institutional, private and offshore buyers.”
Built in 2011 and situated on six acres, the four-story property is located at 10721 W. Charleston Blvd. It is strategically located along three hard corner intersections. Additionally, it is surrounded by two million square feet of retail property between three major shopping centers: Red Rock Casino & Resort, Downtown Summerlin Mall, and Canyon Pointe, as well as stabilized Class A office parks totaling more than 500,000 square feet of space, providing the ideal daytime and resident population base for this high end club.
“Our marketing campaign resulted in a number of competitive offers from a diverse subset of investors, many of whom had previously been unfamiliar with the brand. Our emphasis on the high net worth private buyer, particularly an offshore buyer, dramatically increased the valuation for the property, which was listed on a “best offer” basis. Ultimately, we secured a buyer that closed all-cash after a limited and a highly managed, exclusive marketing period,” said Luther. “Prime assets like this are rare, and investors appreciate the intrinsic, long-term stability of institutional-quality retail assets under long term leases.”
About Faris Lee Investments: Faris Lee Investments is a 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. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee's senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, visit www.farislee.com.