Life Time unloads Tempe location while planning two new Valley clubs

Article originally posted on Phoenix Business Journal on December 30, 2025

Life Time, the national athletic country club company, sold one of its Valley locations in December as part of its national sale-leaseback strategy.

On Dec. 22, Minnesota-based Life Time Group Holdings Inc. (NYSE: LTH) sold its 108,932-square-foot club in Tempe for $26 million, according to real estate database Vizzda. The property, which is located at 1616 W. Ruby Drive and was built in 2002, was acquired by North Haven Net REIT.

As part of the deal, Life Time signed a lease that allows it to operate in the space through 2050. The transaction will have no effect on the club’s operations.

Minnesota-based Life Time has been making similar deals across the country in recent years as a way to fuel its growth.

“We remain committed to funding our growth through net cash from operations and sale leasebacks with a target of sustaining annual positive free cash flow,” Life Time CFO Erik Weaver said during an Aug. 5, 2025 earnings call.

Earlier this year, Life Time announced it closed on a sale-leaseback transaction of three properties for approximately $150 million in gross proceeds. The company said it would be looking to execute at least $100 million in additional sale-leasebacks over the remainder of 2025. The Tempe deal appears to be part of that plan.

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