SCOTTSDALE, AZ-Capital & Counties USA pumped up the bidding to $7.8 million, squashing six other investors in the process, to take ownership of a 24 Hour Fitness center that offered the new owner an 18-year lease, a cap rate of just under 10% and a prime Scottsdale location.

The San Francisco-based investment group, a subsidiary of Liberty International PLC, one of the largest publicly traded property companies in the United Kingdom, captured the keys to the 44,370-sf fitness center at 13220 N. Scottsdale Rd. at a price tag just shy of seller New Plan Excel Realty Trust’s $7.9-million asking price. “We had multiple offers,” Cliff Johnston with Grubb & Ellis Co.’s Phoenix office tells, noting that the building’s high cap rate was a key factor in the fierce fight over the facility’s ownership. At least six investors skirmished over the property, Johnston said, but in the end, Capital & Counties USA was the sole holdout.

For seller New Plan Excel Realty Trust, the sale was the second of its 24 Hour Fitness holdings in Phoenix since November when a sister property, located at 3233 E. Camelback Rd. in Phoenix, was sold to Nevada-based Lako LP for $7.2 million.

Johnston said the New York-based REIT, one of the largest in the nation with more than 390 properties in 35 states, divested of the pair of health clubs as part of an effort to prune its holdings. “These are triple-net, single-tenant, special-use properties that don’t fit into their model,” Johnston said of the seller, a traditional investor in multi-tenant shopping centers.

Johnston, along with Dennis Desmond, with Dallas-based Trammell Crow Co.’s Phoenix office, represented the seller in the Scottsdale health club deal. The buyer was assisted by David Lynch with Lynch Properties of San Francisco.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.