Alexandra CloughPalm Beach Post
Gym wars at CityPlace are over.
A lawsuit between the LA Fitness exercise center chain and Related Cos. of New York settled earlier this month following more than a year of contentious litigation.
And on Thursday, May 30, LA Fitness posted a sign outside its door at CityPlace that the gym was closing as of June 21. The sign directed club members to other Florida clubs, including an LA Fitness on Military Trail in West Palm Beach.
The resolution ends a contentious period between CityPlace's developer and its longtime tenant. LA Fitness has been in its space for 12 years.
The settlement also means residents of The Laurel, a newly opened apartment complex at CityPlace will be able to use the complex's fitness facilities, albeit for an extra charge in addition to the rent. Use of The Laurels' gyms, swimming pools, game rooms or any other amenity costs $125 a month, according to prospective renters and real estate brokers. Related built The Laurel, the company's first luxury rental apartment in Florida.
Meanwhile, it's possible that Equinox, the posh fitness center with the devoted following, will come to the West Palm Beach mixed-use center after all, according to area real estate brokers. Related is a part owner of Equinox.
A Related spokesperson and an LA Fitness attorney did not disclose settlement details, but they did provide this statement: "The parties were able to confidentially resolve their dispute in a mutually beneficial and amicable matter."
In a 2023 lawsuit, LA Fitness sued a Related affiliate claiming the chain's lease gives LA Fitness the exclusive right to provide all fitness centers at CityPlace. LA Fitness sought to block the opening of Equinox, as well as in-house gyms at new apartments and offices buildings.
More: Laurel start leasing in West Palm. Will renters get access to fitness center at The Square?
LA Fitness presence at CityPlace goes back more than a decade
Since 2012,LAFitnesshas leased 28,674 square feet in a prime spot along Okeechobee Boulevard, on the south side of CityPlace. The space previously had been occupied by a Barnes & Noble bookstore.
In April 2023, the national gym retailer sued Related over what it said were plans to bring Equinox to CityPlace. Equinox is a trendy gym that charges memberships of $200 or more per month for access to its high-quality equipment, creative classes and top personal trainers.
More: LA Fitness sues Related Cos. over plans to bring Equinox gym to The Square in West Palm
More: LA Fitness' legal battle with Related Cos. could halt redo of The Square in West Palm Beach
LA Fitness' lawsuit came as Related was bringing more upscale restaurants and stores to CityPlace. It's part of a strategy to complement the growing cluster of finance-related companies leasing office space at CityPlace by creating a modern high-rise destination for office tenants and residents.
Court documents last year refuted LA Fitness' claim that Related planned to open an Equinox gym at CityPlace.
But LA Fitness amended its lawsuit to say that the landlord-created fitness facilities at TheLaurelapartments also were competition, and they were not allowed under the lease, either.
The 322-unit Laurel apartment complex was built on the former Macy's department store site and just opened. The 635 Hibiscus St. property is already 50% leased, a Related spokesperson said.
Related said LA Fitness' claims were incorrect
Related fought back against LA Fitness' efforts to restrict workout spaces at CityPlace.
The global real estate developer said apartment or office building amenities, such as gyms, are not a paid business the way LA Fitness charges a monthly membership to customers. Therefore they were not covered by the LA Fitness lease, Related said.
In addition, Related said the apartment and office towers merely provide "fitness amenities," which are not the same as fitness centers.
But then a Related official acknowledged that Related charges for the fitness facilities by adding costs onto the monthly rent.
LA Fitness called the distinction "fanciful."
In February, LA Fitness asked Palm Beach County Circuit Court Judge Jaimie Goodman to block the opening of the fitness center at TheLaurel apartments.
This could have meant apartment tenants would not be able to use the workout perks, at least right away.
LA Fitness lawsuit draws Stephen Ross' close attention
The Laurel apartment tower is a big bet by Related, which wants to attract well-paid professionals to the rental site. The company also wants to lure people who are wealthy enough to buy a second home in Palm Beach County but who prefer the flexibility of renting, Bryan Cho, Related executive vice president, said in an interview this year.
Top Related officials closely followed the LA Fitness case.
During a Feb. 29 court hearing conducted via Zoom, Related Chair Stephen Ross listened in from his company's conference room in West Palm Beach.
Ross, a billionaire Palm Beach resident, is the owner of the NFL's Miami Dolphins football team. He's also the force behind Related's construction of CityPlace, the Hilton convention center hotel, three office towers and two planned luxury condominium complexes downtown.
In court documents, Related threatened LA Fitness with millions of dollars in damages for interfering in its plans to revamp CityPlace, especially with Related now trying to lease both apartments and office space at The Laurel.
Then, on May 14, both LA Fitness and Related Cos. asked Goodman for a 60-day pause on the lawsuit. A court filing revealed settlement talks were in the works.
Renters must pay a fee to use The Laurel's perks, including the gym
With the lawsuit's conclusion at hand, Related continues to lease out The Laurel, which bills itself as a residential "oasis" with condo-like finishes inside.
This resort-style apartment complex also features two floors of amenities, including indoor and outdoor fitness facilities, two pools, game rooms and many other perks.
The starting rent is $3,400 a month, about $1,100 more than other apartments in West Palm Beach, according to Rentcafe.com. The rent goes up to about $20,000 a month for a furnished, three-bedroom apartment.
But the rent doesn't include use of the building's amenities, as is typical at other apartment complexes, real estate agents said.
According to prospective tenants, The Laurel charges tenants $125 month to use the fitness centers, the pool or any of the other building perks. Renters who don't pay the extra fee can't use any building amenities, including the gym and pool.
The fee surprised some area real estate agents.
"This is the first time I've heard of extra fees to use amenities in a building," said Alec Farrington, a real estate associate with Keller Williams Coastal Partners in West Palm Beach. "In my opinion, if they're charging for pool access, they should just raise the rent a little bit higher."
A Related spokesperson did not provide a comment on the amenities fee. The spokesperson also would not comment on word in the real estate community that Equinox will lease space in The Laurel tower.
The Laurel building has 36,000 square feet on two floors are available for offices or other uses.
Alexandra Clough is a business writer atThe Palm Beach Post.You can reach herataclough@pbpost.com. X:@acloughpbp.Help support our journalism. Subscribe today.
