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Prism secures finance for fitness club project

Prism Capital Partners, LLC has secured a build-to-suit lease and construction financing for a 48,000 s/f LA Fitness health club, which the firm is currently developing at 471 Prospect Ave. in West Orange, NJ.

Prism broke ground in March and anticipates completing the building before the end of the year.

LA Fitness, based in southern California, is a growing chain of fitness and wellness clubs. The West Orange facility will include an indoor pool, basketball court and kids’ club.

CBRE/FAMECO represented LA Fitness in the long-term lease at 471 Prospect. Ave.camera02.psd

Prism secured a $10 million construction loan for the project through People’s United Bank. With an accelerated development schedule, the firm anticipates a November 2015 completion.

“LA Fitness is a perfect fit for this land parcel, which sits adjacent to the Essex Green Shopping Center,” noted Edwin Cohen, a principal partner with Prism.

“The company actively pursued our location, which will position it with excellent access and visibility in an area that until now has been underserved in the health club category.”

The LA Fitness build-to-suit marks the final phase of redevelopment for a site that formerly housed the headquarters campus of prescription drug manufacturer Organon USA.

EDWIN COHEN
EDWIN COHEN

Prism purchased the property in 2005, and subsequently razed two functionally obsolete buildings and converted a third structure for medical office use. People’s United Bank also provided construction financing for that initiative.

The medical office building has since been leased up and sold to a physician whose practice occupies a portion of the space; Prism continues to serve as property manager.

Based in Bloomfield, New Jersey, Prism is a privately owned owner/operator focused on office, multifamily, industrial and retail properties in the New Jersey regional market. To date, the 12-year-old company, with its capital partners, has invested more than $400 million in 15 projects.

Last year, NAIOP New Jersey recognized Prism’s contributions by honoring the firm with its prestigious Impact Award.

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