CRESTWOOD, Mo. – (RealEstateRama) — Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, has completed the sale of a recently renovated 44,864-square-foot single-tenant retail property occupied by Planet Fitness. The property is located approximately 13 miles from downtown St. Louis in Crestwood, Missouri. The price could not be disclosed.
The seller, a private investor from Beverly Hills, California, was represented by Hanley Investment Group’s Eric Wohl, executive vice president, and Ed Hanley, president. The buyer, a private investor from Indian Wells, California, was represented by Martin Ensbury, president of The Ensbury Group, an affiliate of Keller Williams Commercial in El Segundo, California.
“We procured a California-based 1031 buyer trading out of apartments,” said Wohl. “The buyer was looking to purchase out-of-state net lease properties in search of higher yields.” The property sold for 97 percent of the list price.
Built in 1994 on 3.70 acres at 9450 Watson Road in Crestwood, the property underwent a major renovation in 2016, which included an all new roof, HVAC and storefront. According to Wohl, Planet Fitness had a long-term 20-year lease with 10 percent rent increases every five years backed by Planet Fitness Midwest, which currently operates 19 fitness clubs in the region with plans to grow by 25 to 30 clubs over the next few years.
Planet Fitness is shadow-anchored by Schnucks grocery store and pharmacy, which has successfully operated at the center for over 20 years. Planet Fitness benefits from the high-traffic location with 20,000 cars per day directly in front of the property and 35,000 cars per day at the intersection of Watson and New Sappington Road. There are over 87,000 people with an average household income of nearly $95,000 that reside within a three-mile radius of the property. A $104 million mixed-use development of a former enclosed mall is located directly across the street. Nearby credit tenants include Walmart Supercenter, Target, Home Depot, Kohl’s, Bed Bath & Beyond, Ross Dress for Less, Old Navy, PetSmart and others.
“Owning internet-resistant retail properties like a Planet Fitness is becoming more important to both institutional and individual investors as online shopping continues to grow,” said Wohl. “A record number of more than 66 million Americans used one of the 36,540 health clubs nationwide in 2016, and this number is expected to increase as the number of adults aged 20 to 64, the largest gym-going demographic, grows and becomes more health and age conscious.”
Wohl recently completed the sale of a 37,000-square-foot single-tenant net-lease property occupied by LA Fitness in Elmhurst, Illinois, which sold for $13,496,000, and currently has two single-tenant net-lease In-Shape Health Clubs listed for sale, both are located in the city of Stockton, California.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.
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