41,000-square-foot absolute net asset trades at a 6.89% cap rate as 1031 capital keeps pushing into South Florida net lease<\/p>\n
\n FORT LAUDERDALE, Fla., October 8, 2026 (Newswire.com)
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\n NX3 Commercial Group has arranged the $14,100,000 acquisition of a single-tenant LA Fitness at 5501 Lyons Road in Coconut Creek, Florida, representing the buyer, a private investor completing a 1031 exchange. The property traded at a 6.89% capitalization rate, or roughly $344 per square foot.<\/p>\n
Robert Zahralban, Head of National Net Lease, and Luke Thomson, President, led the assignment for the Fort Lauderdale-based national net lease brokerage. Mark Thiel of Marcus & Millichap’s NNN Fitness Group represented the seller.<\/p>\n
The 41,000-square-foot health club was built in 2004 on 5.04 acres with approximately 290 surface parking spaces. Fitness International, LLC – parent of LA Fitness and operator of more than 728 clubs across the United States and Canada – occupies the building under an absolute net lease running to January 31, 2037, with three five-year renewal options and rent increases every five years equal to the lesser of CPI or 12%. The buyer takes on more than ten years of primary term and no landlord responsibilities.<\/p>\n
The site fronts Lyons Road at the Sawgrass Expressway, where combined traffic exceeds 120,000 vehicles per day. It backs onto a Publix-anchored center and sits within a mile of Promenade at Coconut Creek and Turtle Crossing, home to Target, The Home Depot and Walmart. Average household income within one mile tops $125,000.<\/p>\n
“Finding a big box at a replaceable basis is rare right now,” said Luke Thomson, President of NX3 Commercial Group. “Buyers are paying for durability, and a 2004-vintage box on five acres at the Sawgrass with a lease running to 2037 is about as durable as this sector gets.”<\/p>\n
Exchange money, and where it is going<\/p>\n
The deal fits a pattern NX3 has watched build across its national platform: owners exiting appreciated, management-heavy real estate in high-tax states and rolling the proceeds into passive single-tenant assets in Florida. Section 1031 lets them defer the capital gains hit, but it puts them on a clock – 45 days to identify a replacement property, 180 to close. That clock, more than price, is what shapes how these buyers behave.<\/p>\n
Florida has been the obvious landing spot. No state income tax, sustained household growth across Broward and Palm Beach counties, and infill corridors with almost no developable land left – conditions that hold up both in-place rents and the value of the dirt underneath. For an investor trading out of an apartment building or an aging strip center, an absolute net lease to a national operator turns a second job into a coupon.<\/p>\n
“Fitness has been one of the most scrutinized categories in net lease, and this asset answers the objections – corporate lease, zero landlord obligations, ten-plus years of term, and real estate that would re-tenant,” said Robert Zahralban, Head of National Net Lease at NX3 Commercial Group. “Our client had a hard deadline and no interest in compromising on credit or location. That is the trade we are running constantly now: capital leaving high-tax states, landing in Florida, looking for a tenant that isn’t going anywhere and a basis that works on the land alone.”<\/p>\n
NX3 Commercial Group advises private investors, family offices and institutions on single-tenant and triple net lease acquisitions and dispositions nationwide, with particular depth in 1031 exchanges and sourcing replacement property on compressed timelines.<\/p>\n
About NX3 Commercial Group<\/p>\n
NX3 Commercial Group is a national net lease investment sales brokerage headquartered in Fort Lauderdale, Florida. The firm specializes in single-tenant and triple net lease retail, medical, fitness and industrial properties, representing buyers and sellers across the United States, including 1031 exchange acquisitions and dispositions. Learn more at nx3commercialgroup.com.<\/p>\n