Net lease real estate investment trust W.P. Carey bought a portfolio of Life Time fitness clubs in Atlanta, Chicago, Washington, and other metropolitan areas for about $300 million.
TPG Angelo Gordon sold at least 10 properties to W.P. Carey that are all leased to Life Time, according to public records. W.P. Carey and TPG Angelo Gordon did not immediately respond to CoStar News' emails and phone call requests for comment and have not issued public statements about the portfolio sale.
Life Time sold most of the properties to TPG Angelo Gordon in 2015 as part of a sale-leaseback transaction, according to CoStar data. Life Time was not a party to the latest sales transaction but continues to occupy the locations, company spokesman Dan DeBaun told CoStar News.
Sales prices were disclosed in public documents for nine of the 10 properties, totaling $296 million. The sales price for the Life Time location in the St. Louis suburb of Frontenac, Missouri, was not disclosed.
New York-based W.P. Carey's net lease portfolio included 1,662 properties comprising 183 million square feet globally as of Sept. 30. In the United States, the REIT's largest holdings were in the industrial and warehouse sectors, while retail only made up 2.8% of its U.S. portfolio by square footage as of Sept. 30, according to the company's regulatory filings associated with its third-quarter earnings report. The firm has been winding down its office investments since announcing plans in 2023 to exit the sector and focus on industrial real estate.
The 10 properties included in the portfolio sale are:
- 14 Fernwood Drive in Florham Park, New Jersey.
- 2051 S. Lindbergh Blvd. in Frontenac, Missouri.
- 14200 Highway 92 in Woodstock, Georgia.
- 3825 Hard Road in Dublin, Ohio.
- 3850 Richmond Road in Beachwood, Ohio.
- 44 Harvard St. in Westwood, Massachusetts.
- 680 Woodlands Parkway in Vernon Hills, Illinois.
- 18425 Dodd Blvd. in Lakeville, Minnesota.
- 44610 Prentice Drive in Sterling, Virginia.
- 3051 Healthy Way in Birmingham, Alabama.
Life Time last month opened a nearly 60,000-square-foot location in the Bouldin development project in Austin, Texas, and plans to open additional facilities this year in Fishers, Indiana; Cary, North Carolina; and Creve Coeur, Missouri.
For the record
Paul Hastings was legal counsel on the sale, according to the deeds.