41,000-square-foot absolute net asset trades at a 6.89% cap rate as 1031 capital keeps pushing into South Florida net lease
FORT LAUDERDALE, FL / ACCESS Newswire / October 8, 2026 / 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.
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.
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.
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.
"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."
Exchange money, and where it is going
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.
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.
"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."
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.
About NX3 Commercial Group
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.
Media Contact
NX3 Commercial Group
500 E Broward Blvd, Suite 920, Fort Lauderdale, FL 33394
631-438-9908 | agent@nx3commercial.com
SOURCE: NX3 Commercial Group LLC
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/electronics-and-engineering/nx3-commercial-group-represents-buyer-in-14.1-million-sale-of-single-te-1234275
