Life Time Fitness
Acquisition funded exit strategy for institutional investor while preserving continuity for the tenant
Tenant Description: Market-leading fitness operator with a premium lifestyle and fitness brand
Total Investment: $322 million
Transaction Type: Acquisition of existing lease*
Location: U.S. (nine states)
Facility Type: 10 fitness facilities
W. P. Carey completed the $322 million acquisition of 10 fitness facilities located in the U.S. The portfolio, totaling 1.3 million square feet, is net leased to Life Time Fitness, a premium lifestyle brand and fitness operator. Life Time is a market leader, with a significant revenue share of the total U.S. fitness industry and a dominant presence in the high-end club segment. At the time of purchase, Life Time was also a pre-existing tenant. After the transaction, Life Time ranked as W. P. Carey’s third-largest tenant by annualized base rent (ABR).
The portfolio consists of large-format premium fitness centers that have a longstanding and stable operating history. The facilities feature amenities such as certified personal training, basketball and pickleball courts, yoga and Pilates studios, saunas, spas and large indoor/outdoor aquatics centers.
The assets are master leased on a triple-net basis for a remaining term of 9.5 years with built-in rent increases.
*In an acquisition of an existing lease, W. P. Carey will acquire a single-tenant property subject to an existing net lease. This type of transaction enables the previous property owner to achieve a number of different objectives depending on their needs. For example, exit a property that no longer fits its strategy, liquidate a finite-life fund or generate proceeds to invest in new properties or for M&A activity.
This acquisition highlights the advantage of W. P. Carey’s scale and access to capital, which enables us to efficiently execute large, multi-asset transactions. Life Time’s strong credit profile, along with the quality and desirable locations of these assets, made them an ideal addition to our growing retail portfolio.