The fitness centers, which total 1.6 million sf, are located in Florida, Massachusetts, Minnesota and New Mexico. All 15 properties will be bound by a single 20-year triple net lease. They were purchased on behalf of W.P. Carey funds Corporate Property Associates 12 Inc., Corporate Property Associates 14 Inc. and Corporate Property Associates 15 Inc., all publicly held non-traded REITS.

W.P. Carey managing director Edward V. LaPuma tells GlobeSt.com that the buy not only furthers the company's diversification strategy, it falls well within the comfort level that W.P. Carey seeks in building its portfolios.

"We buy on an opportunistic basis," LaPuma says. "And we look for companies and management that stand the test of time. Wellbridge is that type of company. It has a good business plan and the management to implement that plan. We like the real estate but it's just as important that we like the management and the business."

A major operator of mid- to upper-market athletic clubs, spas and fitness/wellness centers, Wellbridge's portfolio includes more than 45 properties in 11 states with a combined total of 5,000 employees and 200,000 members.

"Wellbridge was built through the strategy of acquiring and successfully turning around athletic health clubs in lucrative regional markets," says Eddie D. Williams, CEO of Wellbridge. "This deal with W. P. Carey allows us to aggressively consider future acquisitions that will enable us to remain a leader in the industry."

"The health club industry is a $13-billion business and has been growing," LaPuma adds. "This sale-leaseback transaction not only frees up substantial capital, but these facilities will further diversify the portfolios of our REITS."

W.P. Carey, in operation since 1973, owns and/or manages more than 500 commercial and industrial properties throughout the US and Europe with an aggregate total of more than 60 million sf.

Instant Insights /

W.P. Carey Acquires 15 Fitness Centers for $178M

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