NEW YORK—Millennium Partners has completed its purchase of five of the Sports Club Co.’s health clubs for $80 million, the company announced. Millennium Partners, a real-estate developer and the largest shareholder in the Sports Club Co., acquired five company-owned clubs. The clubs sold to Millennium include the company’s interest in Reebok Sports Club/NY and the Sports Club/LA in Washington, DC; Boston, San Francisco and the Upper East Side in New York. The Sports Club Co.’s management agreement covering the club in Miami was also terminated.
The company received $50 million in cash from the sale (before transaction related costs) and two notes from Millennium for the remaining $30 million, the first note of which is due Jan. 31. The Sports Club Company's fitness facilities have helped anchor five luxury mixed-use complexes developed by Millennium Partners around the country, four of them in partnership with The Ritz-Carlton Hotel Company or Four Seasons Hotels and Resorts.
Late last year, Millennium Partners hired Dr. Art Curtis to serve as the CEO of Millennium's new sports club operating company that is based in Boston, MA. Prior to joining to joining Millennium Partners, Curtis held a number of senior executive positions in both the athletic club and spa industries, including CEO of Stonewater, a national consolidation of over 20 day spas funded by Falconhead Capital; and COO of Wellbridge, the nation's fourth largest operator of multipurpose athletic clubs and spas with revenues in excess of $170 million.