Packaging the deal as a build-to-suit, 24 Hour Fitness has inkeda 15-year ground lease, with options to extend, for a 3.5-acretract in Katy Crossing, an 8.5-acre plan near the intersection ofUS Hwy. 377 and Golden Triangle Boulevard. The deal was undernegotiation about six months.

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"We feel very strongly about the Keller community. It's veryfamily oriented. It's the perfect fit," John Eiskamp, 24 HourFitness' director of real estate, says about the site selection forone of the chain's first "family sport clubs" in the region.

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Eiskamp says the family sport club's business plan calls forconstruction of "three to five per year for three years" in thethree Texas metros. The company's broker, Jeff Kittleson, seniorvice president in Dallas for CB Richard Ellis, also has closed abuild-to-suit deal in Murphy, another bedroom community in theregion.

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Scott Rose, leasing director for Cross Leasing Group, tellsGlobeSt.com that permitting is under way for the project. The 24Hour Fitness prototype totals 42,519 sf, with an outdoor 10,000-sfamenities area that includes several types of swimming pools. Therest of the plan calls for a 19,000-sf shopping center to be filledwith health-oriented retailers and restaurants, including anationally branded coffee shop, to complement its anchor. The planis to bring it all out of the ground at once, with delivery ofspace to tenants penciled for April 2008. If all goes as planned,Katy Crossing will be open for business in August 2008.

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"We've had a lot of initial interest," Rose says, addingmarketing has barely started. "We anticipate the shopping centerwill prelease quickly." Katy Crossing, which has two drive-throughend caps, is being quoted at $20 per sf to $25 per sf, triplenet.

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With 24 Hour Fitness promoting a family-oriented concept, KatyCrossing's neighbors set up the perfect storm: 245-lot Village ofWoodland Springs, 648-lot Timberland Estates and 809-lot McPhersonRanch. The retail and residential corridor also includes twonational grocery chains, Kohl's and Home Depot.Cross Development,led by Casey Shires, acquired the development site in May. Generalcontracting and architecture are handled in-house. Alderman/PacconeArchitects of Austin designed the 24 Hour Fitness Family Sport Clubprototype.

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