SOURCE: Hager Pacific

May 30, 2013 11:34 ET

Hager Pacific Adds Two Fitness Center Properties to Its Diverse Portfolio

Leading Real Estate Investment Firm and 24 Hour Fitness Commit to 20 Year Lease Term Valued at $32 Million

NEWPORT BEACH, CA--(Marketwired - May 30, 2013) - Hager Pacific Properties, one of the largest privately owned real estate investment firms in the West, recently added two fitness properties in California to its diverse portfolio. First, the company purchased a 45,000-square-foot former industrial building on a 4.1 acre lot in Silicon Valley and redeveloped the property at a cost of $11 million into a state-of-the-art 24 Hour Fitness Super Sport center in Fremont, CA. The firm then entered into a 20 year lease with 24 Hour, valued at almost $32 million.

In a separate transaction the firm acquired a 20,500-square-foot building in Newport Beach, CA known as the University Athletic Club for approximately $2 million.

Hager Pacific partnered with Axxcess-Acre for the Fremont acquisition, redevelopment and lease and paired with Peak Corporate Network for the Orange County purchase of the University Athletic Club.

"We have been so fortunate to have such fine development partners as Axxcess-Acre and Peak Corporate Network in these two ventures," said Robert Neal, managing partner of Hager Pacific.

This is Hager Pacific's first foray into the Fremont market located in Alameda County. With Alameda being the 7th most populous county in California, and the median age of the gym's direct neighborhood being 33, the property has had one of the most successful openings of any 24 Hour Super Sport Center in the nation. Hager Pacific is confident that this vibrant population will take advantage of the facilities' many attractive features, including an indoor lap pool and basketball court and on-site child care.

Hager Pacific has different plans for the Newport Beach property located at 1701 Quail Street near John Wayne Airport. In exploring the options for this 20,500-square-foot site, Hager Pacific is considering repositioning the building for creative office or medical use, or continuing its current use as a neighborhood fitness center. The property is situated in the midst of other creative office and medical buildings with immediate accessibility to the Airport, 73 Freeway and I-405.

About Hager Pacific Properties
As a real estate investment firm, Hager Pacific Properties is guided by a value-added investment philosophy implemented through the acquisition of under-performing, aged or environmentally impacted real estate. Its investments have become more valuable through repositioning, renovation or reuse of the property. The preferred buyer of challenging properties, Hager Pacific self-funds its real estate deals without outside capital. For more information visit www.hagerpacific.com.

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