Bay Club’s $42m El Segundo Close Adds To A $1b Real Estate Portfolio

In an industry where leasing is the general model, Bay Club keeps buying

Bay Club has a rule: own the real estate and you control your future.

The KKR-backed lifestyle and athletic club operator, which has 37 locations, announced the $42 million acquisition of 2250 Park Place, a 5.4-acre campus in El Segundo, California, that has been home to Bay Club El Segundo since 2017.

The deal completes full ownership of both the buildings and underlying land, executing an option Bay Club structured with Continental Development Corporation when it first acquired the 100,000-square-foot building for $29 million nine years ago.

Bay Club’s total real estate portfolio now spans approximately $1 billion across the West Coast.

“We structured this deal almost 10 years ago with CDC with the intention of one day owning the land beneath it,” Bay Club president and CEO Matthew Stevens said. “Completing that today gives us permanent control over our future here and the foundation to keep investing in this club and this community for years to come.”

The club serves more than 8,000 members across fitness, aquatics, basketball, recovery and family programming, sitting less than a mile from Manhattan Country Club. 

Bay Club’s portfolio has been growing fast. In May, the operator announced a $65 million acquisition of the city block housing its flagship San Francisco location, a club it has occupied since 1977. That same month, it also revealed a $25 million overhaul of Manhattan Country Club. And just days ago, Bay Club added Tennis Center Sand Point in Seattle, its 12th Washington location, capitalizing on racket sports’ 67% year-over-year growth among Garmin users in 2025.

Property isn’t the only thing Bay Club does differently. Its shared membership model allows up to 10 individuals to split one plan across its growing portfolio.