Marcus & Millichap Real Estate Investment Services recently brokered the sale of a 45,000-square-foot LA Fitness in Royal Oak, Mich. The sales price of $12.3 million represents $275 a square foot.
Mark Thiel, a senior associate in Marcus & Millichap’s San Diego office, represented the buyer, a Southern California-based private family trust. Jonathon Dwoskin, regional manager of the firm’s Detroit office, is Marcus & Millichap’s broker of record in Michigan.
“There are more than 19 years remaining on the primary term of this rare absolute triple-net LA Fitness lease,” says Thiel. “Rent commenced in September 2010 and extends through September 2030 with three five-year renewal options.”
The property is bordered by the entrance to the Detroit Zoo, which attracts more than 1 million visitors a year, and is the largest family attraction in the state of Michigan.
The Royal Oak LA Fitness was built in 2010 on 3.3 acres. The building features a unique ground-level parking structure with both outdoor and covered parking. There are a total of 289 parking spaces throughout the property, which allows for multiple types of reuse.
