Newport Beach, Calif. (January 7, 2022) – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the $12.5 million portfolio sale of two newly developed single-tenant Crunch Fitness-occupied properties. The assets are located in the Florida cities of Cape Coral and Melbourne. This is the second round of Crunch Fitness sales SRS has completed on behalf the seller, earlier this year, they sold two others in Florida in the cities of Melbourne and Lakeland, bringing the total value of all four sales to $25 million.
For the most recent sale, SRS NNLG’s Managing Principals Matthew Mousavi and Patrick Luther represented the seller, a Southeast-based developer, as well as the buyer, a family partnership from South Florida. The buyer paid all cash. The transaction closed at a 6.55% cap rate.
“These two assets competed construction in 2021 and are now open,” said Luther. “They offered the new ownership corporate-guaranteed, 15-year triple net leases in the business-friendly state of Florida. The fitness center category has bounced back post-Covid and is seeing a strong customer base once again.”
Following is information on each property:
Cape Coral, FL: Located at 244 Nicholas Parkway W, the 19,200-sf property is situated on 4.24 acres. The property is in a dense retail corridor and is .5 miles from Sam’s Club and is also near Target, Walmart Supercenter, and Lowe’s, among other major brands.
Melbourne, FL: Located at 4880 N. Wickham Road, the 19,500-sf property is situated on 3.06 acres. The property is an anchor tenant to Constellation Commons, a newly developed 70,000-sf shopping center that is located one mile from the 120-acre Eastern Florida State College (Melbourne Campus).
“Fitness uses during the initial onset of the pandemic were severely impacted by closures and capacity limits, thus making them difficult to finance and transact. As these uses have opened over the course of the past 18 months, particularly in states like Florida, we’ve seen a robust rebound in foot traffic, membership counts and unit performance within the fitness sector,” added Mousavi. “Likewise, investor interest has rebounded and we are now transacting fitness uses at or better than pre-pandemic levels. The four separate Crunch sales this year make it clear that investors feel confident in the use and health and fitness related investment properties.”
In 2021, SRS’ Investment Properties Group and National Net Lease Group (NNLG) completed 800 transactions valued in excess of $3 billion and currently has in excess of $2 billion in property on the market.
About SRS Real Estate Partners
SRS Real Estate Partners is the largest real estate company in North America exclusively dedicated to retail services. Headquartered in Dallas with more than 26 offices worldwide, SRS’ strong reach and international presence provide the company with unparalleled knowledge both globally and domestically. As a result, clients of SRS have a competitive edge through a full range of offerings including brokerage services, corporate services, development services, and investment services. Since its inception in 1986, SRS has built a strong foundation in the retail real estate world and grown into one of the industry’s most influential and respected leaders. Our success is measured in the achievement of our clients’ objectives, satisfaction and trust. For more information, please visit srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2020, the group completed more than 550 sales across more than 35 states and has over 50 NNLG professionals nationally. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsre.com/national-net-lease-group.