Inland Private Capital sells Las Vegas Life Time Fitness property for $53.5m

Inland Private Capital Corporation (IPC) has sold a 145,020-square-foot Life Time Fitness property in the Summerlin submarket of Las Vegas for $53.5 million.

IPC, through its subsidiary, which serves as asset manager, facilitated the sale of the property on behalf of National Net Lease Portfolio VII DST, one of its 1031 investment programs. The property is one of six net-lease assets included in the trust, in which five properties are still operating.

“While the Life Time property was part of a larger portfolio, our exit strategy was always contemplated as a separate sale and a shorter-term hold, in an effort to provide staggered liquidity to investors,” said Keith Lampi, president and chief operating officer of IPC.

Constructed in 2011, the three-story fitness center is positioned on approximately 6.09 acres of land and features a large outdoor swimming pool and a parking garage. The building is let to Healthy Way of Life II, which operates the Life Time Fitness center.

“Since the time we acquired this asset, the Summerlin submarket has continued to experience tremendous growth, which made the asset desirable to a large pool of potential purchasers,” said Rahul Sehgal, CIO of IPC. “The sale of this property underscores our asset management team’s commitment to maximizing value on behalf of its investors, through the execution of its investment strategy.”

After the sale of the Life Time Fitness property, IPC anticipates the cash-on-cash return investors receive, on remaining equity, will remain unchanged.

“In anticipation of this exit strategy, we secured short-term bank financing with a flexible prepayment structure. The asset provided consistent income and meaningful liquidity to investors upon sale, by returning approximately 40 percent of their original investment in the trust.”