Fort Lauderdale, FL (August 14, 2023) – SRS Real Estate Partners announced today it has completed the sale of seven single-tenant EoS Fitness properties for a combined purchase price in excess of $94 million. Five of the assets are located in Arizona and two are in Florida.
SRS Capital Markets Executive Vice President & Market Leader, Patrick Nutt and Senior Vice President William Wamble who are based in Fort Lauderdale, FL represented the seller, Barclay Group a national development company. The buyer was a publicly traded REIT. SRS Senior Vice President & Market Leader Tyler McRae who is based in Tampa, FL and Echelon Realty Advisors in Phoenix, AZ were responsible for leasing the assets on behalf of EoS Fitness.
“This portfolio sale is testimony that there is institutional interest once again in the fitness retail sector,” said Nutt. “SRS created a competitive environment even in the face of macroeconomic headwinds. We were able to fully expose each site to the private capital marketplace while also working with institutional ownership groups looking for larger portfolios. Ultimately the buyer was selected as it offered the best combination of business terms as well as a want and desire to have EoS Fitness as a growing tenant within its portfolio.”
SRS brings an in-depth knowledge of EoS combined with a physical presence in both Florida and Arizona, delivering a best-in-class national net lease experience with local real estate knowledge. Additionally, SRS is actively representing the tenant in its search for new locations, enabling SRS to better understand why each location was selected by the tenant for its growth goals.
“I have worked closely with the executive and real estate teams of EoS Fitness for the past four years, helping to sculpt a site selection real estate leasing strategy focused on identifying the top markets and specific submarkets to best serve its core consumer,” said McRae. “Ultimately, this sale enabled the sales team to leverage our knowledge to answer the “why here” question from every potential buyer, further reinforcing the successful path for these new locations.”
“This is a unique experience where the transaction was not led merely by a search for yield or a specific acquisition need, rather a buyer group that noticed the growth and success of EoS Fitness and wanting to find a way to create and expand a landlord-tenant relationship with such a successful company,” said Wamble.
The portfolio was comprised of three new construction gyms that opened in 2023 as well as four formerly vacant grocery stores that are currently undergoing improvements. All of the properties have 15-year, corporate-guaranteed, triple net leases in place with scheduled rental increases.
Barclay Group worked with EoS Fitness, SRS, and Echelon in identifying and acquiring the properties, which included a portfolio of surplus stores from a prominent grocery-chain. Over the past five years, Barclay Group has partnered with EoS Fitness to open more than 25 locations across the country.
“This portfolio reflects our relationship-driven approach. We have had a long-standing relationship with EoS, focused on delivering strong stores, and these properties are representative of that partnership and its successful track record,” said Jim Gardner, Barclay Group Executive Vice President. “Additionally, the portfolio included properties we acquired from an established relationship in the grocery business. We are actively working with our partners to monetize surplus property and repurpose it with non-competitive uses. Finally, the transaction was done with a buyer we have a prior track-record with and view as a long-term partner for us and EoS. We continue to seek out new sites to acquire and develop for EoS across their footprint.”
Following is information on each of the assets:
- 9101 E. Baseline Road, Mesa, AZ, 57,803 sf*
- 27 40 E. University Road, Mesa, AZ, 51,716 sf*
- 750 E. Guadalupe Road, Tempe, AZ, 63,843 sf*
- 11275 E. Via Linda Road, Scottsdale, AZ, 46,039 sf*
- 20722 E. Riggs Road, Queens Creek, AZ 40,350 sf**
- 5891 South Gornto Lake Road, Riverview, FL 40,350 sf**
- 2194 Argosy Drive, Lutz, FL 40,350 sf**
*Former grocery store that was vacant and is under renovation for EoS Fitness with completion in 2023
**New construction
In 2022, SRS Capital Markets completed more than $2.8 billion in deal volume comprised of 705 transactions in 49 states. SRS currently has in excess of 550 properties actively on the market with a market value surpassing $2.8 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 more than 25 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.
About Barclay Group
Barclay Group is a national real estate development platform offering a fully integrated build-to-suit and reverse-build-to-suit program. The company has been operating for over 40 years and has developed more than 200 projects for its clients.
In addition to its build-to-suit program, Barclay Group is an active developer and owner of neighborhood retail centers and apartment communities throughout the southwest and southeast. The company has offices in Tampa, FL, Phoenix, AZ, and Boise, ID.