BROOMFIELD — A group of investors in New York has paid $18 million for the property that houses Life Time Athletic Flatirons, a health club in Broomfield.
Pan Am Equities Inc., using the entity LT Flatiron LLC, bought the property at 300 Summit Blvd. from Minnesota-based Life Time Inc., which used the entity LF Real Estate Co. Inc., in the transaction, according to public records.
While owning a building seems like something every successful business should do, that’s not always the case. For many companies, it makes more sense to continue leasing space, freeing up time and capital that can be better utilized in other ways.
Life Time will continue to operate the health club under the sale-leaseback deal that was completed earlier this month.
Pan Am Equities Inc. develops and operates real estate properties. The company provides development, ownership, construction and property-management services.
A Life Time spokeswoman said as “a normal course of business, Lifetime is always exploring financing options that work to the company’s advantage. … That includes sale-leaseback deals with real estate investment trusts to keep the company efficient and light on assets. It’s a common financing practice that we utilize.”
Lifetime Fitness in 2017 acquired the former Lakeshore Athletic Club facility for $10.75 million and in December of that year spent $10 million renovating the building. Chicago-based Lakeshore Athletic Clubs built the health club in 2003 for an estimated $26 million.
Life Time operates 138 facilities in 28 states including five in Colorado: Broomfield, Centennial, Parker, Westminster and Colorado Springs.