The Bay Club Company is growing its real estate holdings across California with its latest acquisition in the Los Angeles area.
The athletic club completed its purchase of a two-building campus at 2250 Park Place in El Segundo for $42 million, L.A. Business First reported. Continental Development Corporation acquired the 5.4-acre property in the 1960s and sold the buildings after more than a half-century of ownership.
With the latest acquisition, Bay Club now owns both buildings at the site and the land beneath them. The San Francisco-based firm purchased one building at the campus in 2017 for $29 million and inked a long-term land lease at the time.
The buildings are part of Continental Park, a 100-acre master-planned business center from Continental Development. The 105,000-square-foot Bay Club El Segundo boasts more than 8,000 members and offers fitness classes, training, aquatics, basketball, recovery, family programming and a cafe.
Bay Club broke into the Southern California market in 2015 with the acquisition of Spectrum Athletic Clubs in El Segundo, Redondo Beach and Santa Monica. It also owns the Manhattan Country Club in Manhattan Beach and Griffin Club in West Los Angeles. The company invested more than $200 million in the Rosecrans-Sepulveda Corridor with the acquisitions and renovations of the Manhattan Country Club and Bay Club El Segundo, according to L.A. Business First.
The athletic club has been on an acquisition tear in the Golden State this spring. In April, Bay Club purchased three parcels surrounding its first-ever location at 150 Greenwich Street in San Francisco’s Northern Waterfront for $65 million. The more than 150,000-square-foot buy put the entire block bounded by Sansome, Battery, Greenwich and Lombard Streets under Bay Club’s ownership.
Bay Club’s deeper foray into real estate this year comes more than a decade after the company initially considered buying its flagship property in San Francisco but passed as it ostensibly wasn’t the right time. “We just weren’t in the right position as a company to be able to do that,” CEO Matthew Stevens told the San Francisco Chronicle of the 2012 purchase opportunity. — Chris Malone Méndez
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