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Sunday, 27 October 2013 22:00

MVP Sports plans purchase of two athletic clubs run by Saint Mary’s

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The East Hills and Orchard Hills athletic clubs could soon be under new ownership.

Orlando-based MVP Sports Clubs LLC, which is owned by Amway co-founder Richard DeVos’ RDV Corp., is expected to purchase both clubs and their real estate, pending due diligence.

The health clubs are currently operated by Saint Mary’s Health Management Co., which leases the properties from a subsidiary of New York-based One Liberty Properties Inc., a real estate investment trust (REIT).

“MVP Sports Clubs has entered into a period of due diligence for the real estate purchase of Orchard Hills and East Hills Athletic Club,” Karl Droppers, president of MVP Sports Clubs, said in a statement to MiBiz. Droppers declined to elaborate on the company’s plans for the two sites.

Saint Mary’s announced earlier this year that it intended to exit the operations of the financially challenged health clubs or close them by 2014. A representative from Saint Mary’s said the organization’s goal is to see the clubs remain open.

Together, both properties include 202,000- square-feet of building space and approximately 34 acres of land.

A third health club operated by Saint Mary’s, the Michigan Athletic Club (MAC), is not a part of the potential sale to MVP, according to sources. Real estate developer Paul Renucci, who owns the MAC property, did not respond to a request for comment.

Dave Denton, president of Grand Rapids-based DAR Development Inc., which represents the REIT, said the properties garnered significant activity from local, regional and national interests. Denton confirmed One Liberty is in negotiations for a possible deal, but would not confirm the buyer, citing a confidentiality agreement.

Prior to MVP’s offer, another possible buyer was told he was in the “driver’s seat” for a deal, but now hasn’t heard from the seller in weeks, said broker Peter Colvin, senior adviser at Sperry Van Ness in Grand Rapids.

“We were offering a cash deal, very close to asking price,” Colvin said.

The deal Colvin’s buyer put forward included $2.2 million for the Orchard Hills facility and just more than $4 million for the East Hills location, he said. According to Colvin, his buyer teamed with a well-known tennis organization in the hopes of establishing a youth tennis academy.

“We hope that if (the current) deal doesn’t close that our buyer gets another chance,” Colvin said. “His plan would be great for Grand Rapids.”

If MVP goes through with the purchase, the health club would operate a total of 12 facilities between Florida and Michigan.

 

Read 12487 times Last modified on Friday, 25 October 2013 15:13

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