LA Fitness at 950 West Edgar Road in Linden — Courtesy: SRS Real Estate Partners
(Editor’s note: This story was updated Thursday, Oct. 17, with additional information from Marcus & Millichap Capital Corp., which arranged acquisition financing.)
By Joshua Burd
A developer and its partner have sold a newly built, 41,000-square-foot LA Fitness property in Linden for nearly $14.3 million, in a newly announced deal by SRS Real Estate Partners.
In a news release, the brokerage team said it represented sellers Cypress Equities and Stockbridge Capital Group in the transaction at 950 West Edgar Road. A private buyer paid $14.29 million for the property, which sits within the Legacy Square Shopping Center, as part of a 1031 like-kind exchange.
The deal comes just under a year after the gym opened on a 4.94-acre site, SRS said.
“This is a high-profile fitness transaction financed through a CMBS structure, highlighting the strength and appeal of the asset,” the firm’s Kyle Fant said. “This property presents the new ownership with a stable, high-quality asset within a densely populated area that is part of greater New York City market.”
Fant and Britt Raymond, senior vice presidents and managing principals with SRS, and senior managing principals Matthew Mousavi and Patrick Luther represented the seller. Josh Kanter and Tony D’Ambrosia of NNN Pro represented the buyer, while Chris Marks and Steve Filippo of Marcus & Millichap Capital Corp. arranged financing with a national bank.
“We were able to secure competitive terms in addition to meeting our client’s 1031 deadline,” Marks said, adding that the five-year, nonrecourse loan includes full-term interest-only at a rate of 7.73 percent and a loan-to-value of 56 percent.
The brokers noted that Legacy Square Shopping Center is a newly built property that, in addition to LA Fitness, includes a Walmart Supercenter, Chick-fil-A, Starbucks, Wawa, Panera and Taco Bell, among others. San Francisco-based Cypress Equities has sold eight pieces of the property for more than $92 million in total as part of a breakup strategy for the asset.
SRS will soon list the two remaining outparcels at the property, which include Wawa and Spark Car Wash, completing the seller’s exit strategy for the center.
Developers sell ground lease for Walmart-occupied property in Linden, SRS says
