Northbrook, IL – February 5, 2016 – (RealEstateRama) — The Boulder Group, a net leased investment brokerage firm, has completed the sale of a trophy single tenant LA Fitness property located at 6107 North Broadway in Chicago, IL for $9,500,000. The Boulder Group has once again set a new CoStar record with the closing of this trophy LA Fitness property. According to CoStar, the 5.63% cap rate represents the lowest sold cap rate ever recorded for a single tenant LA Fitness property.
The LA Fitness property is strategically located along North Broadway Street at a signalized intersection. The property is strategically located within two blocks of two different CTA Red Line “L” stations. The Red line is the most used “L” line in the city. The LA Fitness is benefitted by its close proximity to Loyola University Chicago. Loyola University is home to over 15,000 students. The surrounding area is densely populated with over 70,000 people living within a one mile radius. A new Whole Foods is located adjacent to the property immediately to the south and a brand new Walgreens is located adjacent, which recently signed a new 25 year lease and built a flagship store at the location further illustrating the strength of the immediate area.
The 22,000 square foot state of the art fitness facility consists of two levels. The free-standing building was fully renovated in 2014 by Crossroads Development. The LA Fitness benefits from the presence of on-site parking; a rare feature for properties located within the city of Chicago.
In the immediate vicinity to the LA Fitness property, Crossroads Development recently developed a single tenant trophy Walgreens and a Physicians Immediate Care property. “Developing in Edgewater has been a successful venture for us and for the neighborhood,“ said Crossroads principal Michael Nortman. “Additionally, the Buyer has retained our management group to manage the property post-closing, which is something we’ve been successful doing in over 90% of properties sold in our portfolio.”
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction which was Crossroads Development. The purchaser was a high net worth individual based on the West Coast in a 1031 Exchange.
LA Fitness has over 13 years remaining on their lease which expires in June 2029. The lease features 10% rental escalations every five years and in each renewal option period. LA Fitness is the dominant market leader in the Chicago MSA with approximately 40 locations in the area. LA Fitness is a privately held company with over 600 locations across the country.
“The property’s superior infill location within a core market allowed The Boulder Group to achieve a historic cap rate for this sale” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Investors continue to aggressively target properties located in top MSA’s with long term leases and rental escalations.”
About The Boulder Group
The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $3 billion of single tenant net lease real estate transactions. From 2010-2015, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago.
About Crossroads Development Partners
Crossroads Development Partners, LLC is a boutique commercial real estate investment, management, and development company with expertise in property operations, entitlements, construction management, financial underwriting, and development. Crossroads Development Partners is particularly focused on maintaining and creating value at the property level to maximize returns to stakeholders. The company’s hands-on approach to operating income-producing real estate differentiates Crossroads Development Partners from competitors. Crossroads currently has over $200,000,000 in various stages of development including retail, apartments and office properties located in Florida and Illinois.
Media Contact: Randy Blankstein
The Boulder Group