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IRVINE-CT Realty Corp. has replaced the construction loan on the LA Fitness facility it developed at Michelle Drive and Jamboree Road with an $8.5 million permanent loan, according to Avalon Financial Group Inc. of Irvine.The Irvine LA Fitness is located on four acres at the intersection of Michelle Drive and Jamboree Road immediately adjacent to Interstate 5. The club opened approximately one year ago. Jeffrey L. Randolph, a principal of Avalon, reports that the loan was negotiated with an institutional lender and replaces an existing construction loan on the 41,000-sf sports club. CT Realty Corp. entered a strategic partnership with LA Fitness in 2002 to develop the state-of-the-art sports club for the fitness company, one of the largest in the nation. LA Fitness typically does not own its buildings or land, preferring instead to align itself with development partners such as CT Realty. LA Fitness leases the property back from CT Realty.Refinancing the property represented an unusual challenge since the sports club had to be evaluated both as a real estate investment and as an operating business, Randolph says.

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