National Fitness Chain to Open in Old Downtown Safeway

Wednesday, Apr 25, 2018

The downtown Safeway building will have a new tenant by Jan. 1 after sitting vacant for more than a year,

24 Hour Fitness plans to install a swimming pool and basketball court as part of about $8 million in renovations and improvements on the site, 460A S. College Ave.

"They've been trying to find a space in downtown for years and this one works," said Eric Holsapple, a principal with LC Real Estate. "I think they will get a lot of demand for it." 

LC Real Estate purchased the building that also houses Mulberry Max liquor store, in 2015 for $8.8 million. Safeway, which had been part of the site since 1988, closed in February 2017. 

The prime downtown site generated interest from other health clubs and redevelopers. 

Holsapple said his first priority for the site was "to put food in there," he said. But "with Lucky's Market going in across the way (in the former Sports Authority site), people didn't feel like there was a demand for two" grocers. And Safeway, which continued to pay rent on the space, "didn't really want another grocer in there," Holsapple said. 

LC Real Estate is investing about $5 million into the building for a new roof and HVAC system, and 24 Hour Fitness is putting in another $3 million to turn the grocery space into a health club. The building, built in 1988, "is still in good shape," with about 250 parking spaces in its below-ground and surface parking lot, Holsapple said.  The property still has some redevelopment opportunities that could involve 24 Hour Fitness, but the timing isn't right, he said. "We are about 10 years into the (economic) expansion cycle. By the time the project got approved and built, "we weren't confident enough (in the cycle) to do a major construction project now," Holsapple said.

LC Real Estate put about $500,000 into the parking structure when it bought the property, Holsapple said.

24 Hour Fitness representatives declined to comment for this story. It has another Fort Collins club at 2208 E. Harmony Road.

The fitness chain signed a 15-year lease with LC Real Estate.