A West Covina property fully leased by a 24 Hour Fitness has a new set of owners.
Capital Square 1031 — which specializes in specializes in 1031 exchanges — sold a 37,500-square-foot building at 1530 West Covina Parkway, property records show.
Two individuals, Ya Yung Yeh and Cheng Tsung Yeh, are connected to the LLCs that acquired the building: Inland Iowa Property and Capital Premier Property.
24 Hour Fitness has a long-term lease on the property. It has an option to renew three times with an 11 percent rent hike every five years.
Capital Square is a sponsor of Delaware Statutory Trusts, which allow 1031 exchange investors to use proceeds from a property sale to invest in the trust. That compares to a traditional 1031 exchange, in which one property must be replaced with another in order to defer capital gains taxes.
It announced in 2015 that the West Covina property, a DST offering, had been fully subscribed by investors.
The firm and the buyers did not immediately respond to requests for comment.
In February, the former head of Penske Automotive Group recently sold three auto dealerships in West Covina for a total of $61.2 million.