RealSource Group closed the sale-leaseback of a single-tenant net-lease investment occupied by LA Fitness, located in the Memphis metro area.
The 6% cap rate was the lowest reported cap rate for an LA Fitness property since 2019, per CoStar.
RealSource Group’s Senior Vice President Ted Slaughter and Associate Jonathan Schiffer, in association with Scott Reid of ParaSell, Inc., represented the seller, Fitness International of Irvine, California. The buyer, a private investor, represented themselves.
The 34,000-square-foot prototype LA Fitness building, built in 2019, is located at 1088 West Poplar Avenue in Collierville, Tennessee, a high-income suburb of Memphis. The property is situated in the heart of a major commercial artery, with immediate retailers including Target, Kroger, Walmart Supercenter, Lowe’s, and Home Depot. Chipotle Mexican Grill and Chick-fil-A are located on outparcels to LA Fitness.
