RealSource Arranges Sale of New Build, Single-Tenant LA Fitness in Metro Atlanta for $9,350,000
“Sale reaches record cap rate in Georgia”
LAWRENCEVILLE, Georgia – RealSource Group, a national commercial real estate brokerage firm focused on retail, healthcare, automotive and educational properties, announced the sale of a new construction, rental investment single-tenant net worth occupied by LA Fitness in Lawrenceville Town Center, a Kroger-anchored mall in Metro Atlanta. The sale price was $9,350,000, representing a capitalization rate of 6.30%.
RealSource’s senior vice president of investment sales, Austin Blodgett, in association with ParaSell, Inc., represented the seller, DLC Management, a New York-based developer and operator. The buyer was a private investor based in Dallas, Texas.
“We generated multiple qualified offers and selected an experienced LA Fitness landlord, hitting an all-time high cap rate for a single-tenant LA Fitness in the state of Georgia,” Blodgett said. “The buyer liked the location of the Kroger-anchored mall, especially since Kroger was the only grocer in the immediate shopping area. There’s also no major full-service health club within a three-mile radius. Other important factors for the buyer include the fact that this LA Fitness had highly replaceable rent and was the only LA Fitness on the market under $10 million.
Built in 2020 in Gwinnett County, the new 34,000 square foot LA Fitness building is located at 600 Gwinnett Drive in the town of Lawrenceville. The property is conveniently located at the signposted intersection of Grayson Highway and Gwinnett Drive with a combined traffic of approximately 44,000 cars per day.
The property enjoys visibility from the street and highway and its supermarket and gas station co-tenants Kroger, H&R Block, O’Reilly Auto Parts, Verizon, Aaron’s, Rainbow Shops, Ameris Bank, Coast Dental, Burger King, Tidal Wave Auto Spa, Kumon Health Center and Lawrenceville. There is also a brand new 143,000 square foot medical office building under construction located less than three miles from the property, which is expected to be completed in January 2023. Other recent developments include the award-winning $200 million project dollars from downtown Lawrenceville SouthLawn. comprising 600 residential units and 15,000 square feet of retail space (completed in late 2020) and The Enclave, an upscale townhouse development comprising over 63 units (scheduled for completion in 2022) located one mile from the downtown Lawrenceville.
Gwinnett County has a population of approximately one million and the average household income is over $90,000 within a three mile radius.
Blodgett notes, “The majority of LA Fitness deals that have recently been negotiated have been located in Texas, where most of the cap rate compression has been so far. But the sale of LA Fitness in Lawrenceville at a cap rate of 6.30% demonstrates that cap rates for new construction LA Fitness properties are falling in other states as well.
Of the four single-tenant LA Fitness deals that have been negotiated in Texas over the past six months, two of those properties were sold by RealSource Group. LA Fitness in Lawrenceville is RealSource’s third sole-tenant LA Fitness sale in the previous six months, Blodgett reports.
“We expect LA Fitness cap rates with new long-term leases to continue to compress throughout the year, not only in the southern and southeastern states, but across the countries on the east coast, midwest and western states,” Blodgett added.
For the past 20 years, RealSource has served as the primary broker for Fitness International, LLC, operator of the LA Fitness, LA Fitness Signature, Esporta Fitness, City Sports Club and Club Studio brands. With over 740 locations in 27 states and Canada, Fitness International is best in class and one of the fastest growing health club chains in the United States.
About RealSource Group
RealSource Group was founded by John Kalamaras in 1991 as a national commercial real estate brokerage firm specializing in tenant representation, investment sales and sale-leaseback transactions. With the combination of RealSource’s leasing and sales experience, extensive broker network, technology, unique processes and national reach; RealSource provides its customers with consistency, high production, quality service, and measurable business results on a national platform. RealSource has completed over 900 commercial real estate transactions nationwide, RealSource has perfected its platform with proven execution over the past 30 years. For more information, visit: realsource.com.
Company Name: Real Source Group
Contact: Austin Blodgett, Senior Vice President, Investment Sales
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