- Sale is part of a break-up strategy of French Valley Marketplace valued in excess of $40 million
- Transaction marks record low cap rate for brand and fitness assets nationwide this year
SRS Real Estate Partners announced today it has completed the $13.3 million sale of a newly developed EoS Fitness property located at 35914 Winchester Road in French Valley, Calif. (a city within the greater Temecula market in south Riverside County). The 38,000-square-foot (sf) building is situated on 4.33 acres and has a 20-year absolute triple net, corporate-guaranteed lease in place. The property, which is anticipated to open its doors late August 2024, is the anchor tenant within French Valley Marketplace, a new 78,400-sf shopping center featuring other national brands including Grocery Outlet, McDonald’s, Chipotle, and 7-Eleven, among others.
SRS Capital Markets Managing Principals Matthew Mousavi and Patrick Luther and Vice President Jack Cornell represented the seller, a Southern California-based private developer. The buyer was a Southern California-based private investor who was in a 1031 exchange. The closing cap rate was 6.3% which is a record low cap rate for the EoS brand this year, as well as comparable gym / fitness properties nationwide in 2024 according to CoStar records.
“This new construction property went to market and closed escrow with the new ownership prior to opening its doors. This is a significant accomplishment into today’s challenging market in terms of financing and elevated interest rates,” said Mousavi. “Our SRS team has worked on behalf of the French Valley Marketplace developer to market and sell the center as part of a break-up strategy over the past few years, selling off parcels individually to maximize overall value for our client.”
Mousavi added that with this transaction, seven assets valued at more than $30 million have now sold. An El Pollo Loco property is currently being marketed with others to be listed over the coming months as the center progresses toward total build-out.
Year to date, SRS Capital Markets has completed approximately $991 million in deal volume comprised of 235 transactions in 45 states. SRS currently has in excess of 659 properties actively on the market with a market value surpassing $3.2 billion.
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with 28 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.