Bay Club Reinforces Long-Term Investment in the South Bay with El Segundo Acquisition

The transaction completes Bay Club’s ownership of the El Segundo property and reflects the company’s continued focus on strategic real estate investments

EL SEGUNDO, Calif., June 09, 2026 (GLOBE NEWSWIRE) -- The Bay Club Company ("Bay Club") today announces the completion of its $42 million acquisition of 2250 Park Place, a 5.4-acre campus that is home to Bay Club El Segundo, from Continental Development Corporation (“CDC”). Bay Club has closed the loop on a strategy it architected nearly a decade ago and adds another cornerstone to a real estate portfolio that now totals approximately $1 billion across the West Coast.

Bay Club's expansion in Southern California has been deliberate from the start. The company entered the region in 2015 with the acquisition of Spectrum Athletic Clubs, bringing locations in El Segundo, Redondo Beach, and Santa Monica into the Bay Club portfolio. From there, the company expanded its Los Angeles Campus: adding Manhattan Country Club in 2017 and acquiring Griffin Club in 2025, creating a regional network of clubs and amenities that today spans five locations and more than 25,000 members. With this transaction complete, Bay Club turns its attention to the next chapter of growth across Southern California.

Real estate ownership has been a core component of Bay Club’s growth model. In 2017, Bay Club acquired the 100,000-square-foot El Segundo building from CDC for $29 million, along with a long-term land lease and the option to complete the full transaction. Bay Club has exercised that option and now holds full ownership of both the buildings and underlying land associated with the property.

“We structured this deal almost 10 years ago with CDC with the intention of one day owning the land beneath it,” said Matthew Stevens, President and CEO of Bay Club. “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. One of Bay Club’s foundational beliefs is that if you control the real estate, you control your future.”

Bay Club's total investment in the Rosecrans-Sepulveda Corridor now exceeds $200 million, including the acquisition and ongoing $25 million renovation of Manhattan Country Club, a $20 million renovation of Bay Club El Segundo in 2019, and the acquisition of both the building and underlying land of the property. Together, these investments establish the corridor as one of the premier athletic destinations in the Beach Cities—and reflect Bay Club's broader conviction that owned real estate is essential to building durable, community-centered infrastructure. This ownership model supports long-term stability for members and employees, while enabling continued reinvestment in its clubs.

Continental Development Corporation has been involved with this property since the 1960s, when it acquired the land, developed the building, and later formed a joint venture to develop what is now Bay Club El Segundo. The club sits within Continental Park, CDC's 100-acre master-planned business center and one of the region's most prominent mixed-use destinations, encompassing 2.7 million square feet of real estate. That relationship deepened in 2015 when Bay Club acquired Spectrum and entered the LA market, at which point Continental converted its joint venture position into a minority ownership stake in Bay Club's operating business, cementing a partnership that now spans decades.

“We’re thrilled to see Bay Club establish a permanent home in Continental Park. Bay Club El Segundo and the Manhattan Country Club are central to what makes Continental Park the most desirable office address in the South Bay region of Los Angeles,” said Robert Tarnofsky, President, Real Estate, CDC.

Bay Club El Segundo serves more than 8,000 members and offers a full suite of amenities including fitness programming and training, aquatics, basketball, recovery, family programming, Cafe Vida, and more. Located less than a mile from Manhattan Country Club, it serves as a cornerstone of a Los Angeles Campus that offers its members access to fitness, aquatics, racquet sports, food and beverage, and family amenities. Bay Club's broader portfolio spans 35+ clubs from Seattle to San Diego, serving more than 150,000 members across the West Coast.

Bay Club’s growth is guided by a four-part strategy: building interconnected regional campuses, enhancing them with diversified sports, outdoor recreation, and active lifestyle experiences, deepening community through a flexible Shared Membership model, which allows up to 10 individuals to share a single membership, and a transformational culture built on long-term investment in people. That investment includes more than 300 employees participating in Bay Club’s equity program, as well as high school and college internship programs and ongoing leadership development at every level of the organization. The El Segundo acquisition strengthens all four pillars, deepening the Los Angeles campus and establishing a lasting presence in one of the company’s most important markets.

Bay Club has deep roots in the South Bay, with decades of engagement in the local community. The company has sponsored and actively participated in events such as Tour de Pier, an annual cycling event supporting pancreatic cancer research, for 14 consecutive years. Bay Club has also hosted the Manhattan Wine Auction at Manhattan Country Club for 32 years, an event that raises more than $1 million annually in support of the Manhattan Beach Education Foundation. For Bay Club, this acquisition is not just an investment in real estate. It is an investment in the community it has called home for more than a decade.

Bay Club was advised on the transaction by Kristin Macdonald of Brownstein Hyatt Farber Schreck, LLP.

For more information about The Bay Club Company and its continued expansion, visit www.bayclubs.com.

ABOUT BAY CLUB

With a robust and growing portfolio of clubs spanning from San Diego to the Pacific Northwest, The Bay Club Company sits at the intersection of sports, outdoor recreation, and active lifestyle experiences across the West Coast. From elevated fitness and leisure facilities to engaging programming and amenities, Bay Club fosters a community of well-being, connection, and transformation across its portfolio.

Through its innovative Shared Membership concept, Bay Club recognizes that "family" extends beyond traditional boundaries, encompassing diverse connections with friends, neighbors, coworkers, and relatives — creating a vibrant community aligned with modern life. Bay Club demonstrates all the hallmarks of a high-growth subscription business supported by irreplaceable real estate.

For additional information on The Bay Club Company and its legacy, please visit www.bayclubs.com.

Media Contact:
Marissa Lucas
The Bay Club
media@bayclubs.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0071c3e9-e440-4a89-b6c9-d5b79ee3ff54

Bay Club Purchases 5.4-acre El Segundo Campus at 2250 Park Place

The company's recent $42 million acquisition of the Bay Club El Segundo property marks a major milestone, pushing its West Coast real estate portfolio to approximately $1 billion.

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