Orangetheory Fitness is moving its headquarters from Fort Lauderdale, Florida, to Boca Raton, Florida, according to multiple media reports. The two cities are about 20 miles apart.
On May 31, Milhous Group sold a 77,340-square-foot office building at 6000 N.W. Broken Sound Parkway in Boca Raton for $13.9 million to L.K.H.L., led by Orangetheory Fitness founder David Long, according to the South Florida Business Journal. The sale was part of a five-building sale by Milhous Group for a combined $51.4 million and Ameritas Life Insurance Corp financed the deal with L.K.H.L. with a $10 million loan, according to the Journal report.
"We're looking at making South Florida our permanent home," Long told the South Florida Sun-Sentinel, adding that he expects the company will have 100 employees at the new headquarters with plans to add another 50 employees in the next two years.
Long noted that the new headquarters will have a studio in the building to test new equipment and exercise routines. The company expects to open 700 studios by 2017, according to a recent press release, and the company will focus on international expansion in locations including Canada, Mexico, Australia and Japan, according to the Sun-Sentinel report. In April, Orangetheory Japan Co. Ltd., the first master Orangetheory Fitness master franchisor in Japan, signed to open 70 studios with the first opening this fall in Tokyo.
In February, Orangetheory Fitness received a growth equity investment of an undisclosed sum from an affiliate of Roark Capital Group to help the company reach its goal of opening more than 300 studios by 2017.
Orangetheory Fitness currently has 430 locations and increased its 2015 revenue to $47 million, up from $15 million in 2014, the Sun-Sentinel noted. In July 2015, Long told Club Industry that he projected to have 500 to 550 clubs open and operating by the end of 2016.
If Orangetheory Fitness relocates to Boca Raton in 2016, it would be the second major fitness company to relocate its headquarters this year. Anytime Fitness moved its corporate headquarters from Hastings, Minnesota, to Woodbury, Minnesota, in April.