LA Fitness Works Out Five-Year Office Pact

CARROLLTON, TX-The Irvine, CA-based LA Fitness International LLC has inked a five-year lease for 19,189 sf of class A office space for a regional office. The deal went start to finish in less than two months for the rapidly expanding fitness operator.

Move-in is set for Dec. 15 to 3000 Kellway Dr. after an extensive search in Las Colinas and North Dallas, Tim O. Terrell, senior vice president with Dallas-based Stream Realty Partners LP, tells GlobeSt.com. “They toured six to eight properties and settled on North Dallas,” he says.

The winning property is a four-year-old, single-story building owned by Today Realty Advisors of Dallas, with the homerun deal setting up a 75% occupancy and a tenant with a first right of refusal on the remaining 28,000 sf, according to Terrell. The quoted rate is $13 per sf, triple net.

LA Fitness is taking over space emptied nine months ago when the Iowa-based McLeod & Co.’s sublease tenant moved out. LA Fitness will be sharing a 106,000-sf building with Konica Minolta Business Solutions Inc. of Lexington, KY and Pennsylvania-based ICT Group Inc., an outsourcing call center company that uses the space to service a Virgin Mobile account.

LA Fitness’ fast-paced expansion in North Texas underwrote the push for its first regional office in the state. Terrell says the operator has 15 sites under construction or completed for its 40,000-sf to 50,000-sf format, which includes an Olympic-size swimming pool. Steve Shrum with Glacier Commercial Realty LP in Dallas was the tenant rep for the deal.