RealSource Group Arranges $11.75 Million Sale of Single-Tenant LA Fitness
LAKE ELSINORE, Calif. – RealSource Group, a national commercial real estate brokerage company focused on tenant representation and investment sales, announced the $11.75 million sale of a single‑tenant LA Fitness located on a pad adjacent to Walmart Supercenter in Lake Elsinore, California. The LA Fitness has eight years remaining on the primary term. The transaction closed at a 6.57% cap rate, reflecting strong investor demand for net-lease LA Fitness assets nationwide.
RealSource Group’s Austin Blodgett, Senior Vice President of Investment Sales, and Jonathan Schiffer, CCIM, Senior Associate, represented the seller, a private Southern California investor group. The buyer, also a private investor based in Southern California, was represented by Richard Lee at R&L Properties.
“This was a specialized assignment given eight years of remaining lease term and the lower rent per square foot,” said Blodgett. “This deal transacted due to the strength of the underlying real estate, the tenant’s established operating history and the intrinsic value created by a corporately backed, full-service health club with best-in-class credit, all of which made this a compelling long-horizon hold for the buyer.”
Schiffer added, “The north end of the center is undergoing significant transformation, including new junior boxes, pad development and the recent opening of In-N-Out Burger next door. Additionally, Dexter Village, a fully approved 451-unit residential community with 221 single-family homes, is planned immediately adjacent to the site. These developments reinforce the core fundamentals of the trade area.”
The 45,460-square-foot LA Fitness prototype, built in 2008, is located at 18550 Dexter Avenue within the Central Crossroads Shopping Center, one of Lake Elsinore’s primary retail destinations. The property sits on a 4.24-acre parcel with abundant surface parking and excellent visibility along Interstate 15, which sees more than 125,000 vehicles per day.
The site is surrounded by major national retailers including Walmart Supercenter, Chick-fil-A, Chipotle, Starbucks, Raising Cane’s, Taco Bell, Lowe’s, Costco, Target, Home Depot, Marshalls, ULTA Beauty and PetSmart. The property benefits from strong demographics, with more than 92,000 residents and average household incomes exceeding $119,000 within a five-mile radius.
The landlord structured a new 10-year lease extension about two years ago, so the asset was sold with about eight years remaining on the primary term, a 10% rental increase in 2028, and two five-year renewal options, each with 10% increases. The corporately signed lease by Fitness International, LLC, the No. 1 health club operator in the country, reinforces the stability and durability of the asset and the strength of the tenant’s national operating platform.
RealSource has managed Fitness International’s national tenant‑rep account for nearly 30 years. The firm’s long-standing relationship with the tenant and deep market knowledge have consistently helped position LA Fitness assets for record-setting outcomes.
Blodgett concluded, “Investors continue to prioritize high-credit, long-term net-lease assets in top-performing trade areas. Properties anchored by nationally recognized operators like LA Fitness, surrounded by dense residential and retail, remain highly sought after by private investors seeking both stability and future growth.”
About Fitness International, LLC
Fitness International, LLC is one of the fastest-growing health club chains in the U.S., with about 700 locations across 29 U.S. states and Canada. Operating the brand names Club Studio, LA Fitness, and City Sports Club, the company’s mission is to help as many people as possible achieve the benefits of a healthy lifestyle by creating a nationwide network of health clubs, offering its members the widest range of amenities and the friendliest service at an affordable price. To learn more about Fitness International’s growth, visit lafitness.com, clubstudiofitness.com, citysportsfitness.com and clubstudiofitness.com. Follow Fitness International on Facebook, Instagram or by downloading its mobile apps.
About RealSource Group
RealSource Group was founded by John Kalamaras in 1991 as a national commercial real estate brokerage company specializing in tenant representation, investment sales and sale-leaseback transactions. With the combination of RealSource’s leasing and sales experience, vast broker network, technology, unique processes, and national reach, RealSource delivers consistency, high-quality production, quality service and measurable deal-making results for its clients on a nationwide platform. Transacting over 1,000 commercial real estate deals nationwide, RealSource has perfected its platform through proven execution over the last 35 years.
For more information, visit: realsource.com.
Media Contact
Company Name: RealSource Group
Contact Person: Austin Blodgett, Senior Vice President, Investment Sales
Email: Send Email
Phone: 949.431.2735
Address:12 Corporate Plaza Suite 150
City: Newport Beach
State: California
Country: United States
Website: https://realsource.com/
