LEXINGTON—Faris Lee Investments, an Irvine, CA-based investment advisory firm that specializes in retail, has just completed the $36 million sale of a portfolio with three fitness outlets in Kentucky and one in Tennessee. The portfolio totals 186,052-square-feet with each location fully occupied by LA Fitness, a privately held fitness club chain. Faris Lee represented both the buyer, Arizona-based STORE Capital, a real estate investment trust, and the seller, a Kentucky-based private entity.
Faris Lee officials say they enhanced the portfolio’s value by legally separating one of the outlets from its retail center. In addition, Faris Lee did audits of each property to show how the operators could increase net operating income and boosted the value by over $3 million.
“The success of this portfolio sale was in the disciplined and managed approach that we took to underwrite each asset, create a solution for the encumbered debt and defeasance, and create a go-to-market strategy that encompassed a private bid process,” says Richard Chichester, president and CEO of Faris Lee. “Through our focused approach we ensured a seamless and coordinated transaction, resulting in a successful outcome for both parties.”
Chichester, along with Matt Mousavi, Patrick Luther, and Tom Chichester of Faris Lee managed the process from pre-market to close.
Each of the properties have long-term, triple net leases with three relieving the landlord of all responsibilities, and the other allowing for minimal landlord responsibilities.
The properties in the portfolio are listed below:
- 3001 Blake James Dr. in Lexington, KY totals 61,350-square-feet and sits on 4.89 acres
- 1028 Wellington Wy. in Lexington totals 43,478-square-feet and has 3.16 acres
- 6013 Preston Hwy. in Louisville totals 48,500-square-feet and has 3.9 acres
- 2401 Edge o Lake Dr. in Antioch, TN totals 32,724-square-feet and has 5.09 acres