Tuesday, December 12, 2023

[ALERT] Concourse Athletic Acquired by Life Time, Renovation Planned

Concourse Athletic Club (8 Concourse Parkway) has been sold.  The popular fitness facility which has served the local Dunwoody and Sandy Springs area community for more than three decades was recently acquired by Life Time Inc.  News of the acquisition had been rumored amongst members for several weeks, but the company only recently formally notified members of the purchase.  

"We are writing to share important news about the future of CAC. The owners of CAC have sold the property to Life Time and will discontinue their operation of CAC effective December 31, 2023.  We are excited to announce that on January 3, 2024, the property will be reopened as Life Time Perimeter" an email to members read.  

Concourse Athletic Club (CAC) first opened in 1989 as part of the 63 acre Concourse Office Park that also includes the famous "King & Queen" buildings.  The 80,000 square foot facility offers its member a variety of activities including tennis, squash/racquetball, basketball, water aerobics, personal training, and more recently, pickleball.  

"Throughout 2024, we plan a multi-million dollar phased renovation and transformation to create an incredible, high-end, luxury resort. Our plans include updated spaces and best-in-class equipment across the property including the fitness areas, pools, tennis courts, dining area and more.  The specific remodel plans and timing will be shared as they are finalized. While we strive to minimize disruptions during the renovations, certain spaces, programs, and amenities may be temporarily limited."

During the phased renovation, the club will remain open, and members are expected to continue to pay their monthly dues to remain in good standing and be eligible for membership incentives once the renovation is completed.  

Current Concourse members with whom ToNeTo Atlanta spoke seemed leery of the purchase and uninterested in continuing their membership in part because they said paying full price for a facility under renovation seems unfair, and also because of the fear of significant membership increases.  

Life Time Perimeter will be less than three miles from the company's existing Life Time Sandy Springs at The Prado in Sandy Springs.  

Concourse marks the third club in metro Atlanta that Life Time has acquired and rebranded as its own.  The company in October 2013 opened Life Time Athletic at Peachtree Corners in what was formerly Racquet Club of the South at 6350 Courtside Drive in Norcross.  ToNeTo Atlanta reported in April that Life Time had acquired Athletic Club Northeast (1515 Sheridan Road), an older club that had closed in January.  According to the Life Time website, the company plans to reopen the club in 2024 as "Life Time North Druid Hills."  

Life Time (NYSE: LTH), based in Chanhassen, Minnesota entered the Atlanta market in 2006 with a club in Alpharetta.  The company has since expanded to Woodstock, Johns Creek, Sandy Springs, Sugarloaf and Peachtree Corners.  This past December, the company opened one of its largest and most expensive clubs in the country at Phipps Plaza in Buckhead.  The new 115,000 square foot club spans five stories and includes a myriad of fitness options as well as a rooftop pool.  Monthly membership for the Phipps club started at $229, went up to $259 and is now a staggering $289 per month!  

Are you a current Concourse Athletic Club member?  If so, do you plan to continue your membership?  Who do you think offers the best gym value in metro Atlanta?

Please share your thoughts below. 

1 comment:

Anonymous said...

Regarding the Phipps/Buckhead cost model I believe it’s not that the cost has volatility I think it’s more so that they are starting to really understand the hyper-specialized market in the immediate area and is able to command such monthly dues because of the clientele, it has attracted. Simply, if they did not attract such clientele that is able and willing to pay 289 monthly, regardless of the premium amenities, it would not be going from 229 ultimately to 289. I’m willing to bet if you become a member at Phipps/Buckhead, you will be in good company. Regarding the recent acquisitions while it’s true, they are going for premium properties the logic around acquisitions in general is a quick and efficient way to build market share. That said, there’s LA fitness in every neighborhood, also a handful of crunch, and let’s not forget planet fitness. Although these are different price points with different levels of amenities from lifetime, never less they do represent market share. I think becoming a leader in market share of high-end high-dollar properties is a great strategy.

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