Sumit Roy has a new place to keep him in shape when he visits Chicago.
Realty Income, whose chief executive is Roy, has bought a luxury fitness facility in the northern suburbs for $45.5 million. Health club chain Life Time Fitness sold its property at 400 Lander Rd. Zurich North to the REIT in a deal that closed April 20, Lake County public records show.
“The sale and leaseback remains an integral part of our capital-light strategy, supporting our future growth opportunities and commitment to further strengthening the company’s balance sheet,” a Life Time spokesperson said in an email.
Life Time is on track to complete an approximately $300 million sale-leaseback transition by the end of 2023, the company said. It is Realty Income’s policy not to comment on acquisitions.
The three-story, 148,000-square-foot facility opened in September as the chain’s 13th Chicago-area location, according to a Life Time announcement. The Minnesota-based company owns more than 160 clubs in the United States and Canada.
Realty Income, based in San Diego, specializes in freestanding single-tenant commercial properties, including smaller properties like car washes, several of which it bought in Chicago in recent months.
same as others Net Lease REITs, the company has benefited from the “essential” status of many of its retail properties during the pandemic. The firm’s portfolio includes more than 12,200 commercial properties across the United States, including more than 500 in Illinois.
Real estate income fell by more than $67 million Last month it struck a deal with CIM Group funds to acquire four retail and industrial properties in Chicago.
REITs also love Chicago grocery stores, spending $52.4 million Paying at a Mariano store on the Near South Side in 2022 $36.1 million The chain opened its Oran Park location in 2019. Realty Income also bought three Mariano’s stores in Harwood Heights, Lake Zurich and Frankfurt for $116 million in early 2017, and Des Plaines Mariano’s in another deal in 2017 for $34.6 million.
