Town Sports International Holdings, Inc. (Nasdaq:CLUB), the owner and operator of New York Sports Clubs, is pleased to announce the entry into an agreement to sell its property located at 151 East 86th Street, New York to an affiliate of Stillman Development International, LLC for a price of $82 million, subject to certain adjustments. The transaction is subject to various closing conditions, and the parties expect the transaction to be completed on or about March 31, 2014.
In connection with the sale of the property, Town Sports International will continue to operate its NYSC health and fitness club at this location under a lease with the purchaser of the property. After a period of two years, the purchaser, upon prior notice, may exercise its right to terminate the lease in order to commence the demolition of the premises and a currently adjacent property, followed by the construction of a new high-rise multi-use property. The parties have agreed to enter into a new lease for a health and fitness club space to be located at the same location as the current fitness club following completion of development of the new high-rise building.
Bob Giardina, Chief Executive Officer of Town Sports International, commented: "We are pleased to announce this agreement to monetize our 151 East 86th Street location in New York that will generate substantial value for our stakeholders. We are also excited for the opportunity to replace our 35 year old club with a brand new club at this same location upon the completion of the construction of a luxury high-rise building. "