Capital Square 1031 Divests 24 Hour Fitness-Occupied Asset

June 3, 2019

Glen Allen, VA-based Capital Square 1031 sold a 37,500-square-foot facility in West Covina, CA that is 100% occupied by 24 Hour Fitness. An undisclosed buyer paid $20.725 million for the property that was owned by a group of Delaware statutory trust (DST) investors who realized a 149.49% total return on equity, or 12.12% annualized return, from their 1031 exchange investment.

“With the sale of this 24 Hour Fitness facility, Capital Square has taken four DST offerings full-cycle in the last 10 months,” said Capital Square 1031’s Louis Rogers. “Investors realized a handsome return from both the cash flow and capital appreciation.”

The property at 1530 W. Covina Parkway was originally purchased for $16.2 million in May 2015. The asset is situated on 1.6 acres of land, and includes a three-level, free-standing parking garage.

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