Michael Olander Jr., the CEO of O2 Fitness, is adding to his downtown Raleigh commercial real estate portfolio.
Olander, through MDO Holdings – O2’s parent company – and its affiliate MOMA, has purchased 208 Fayetteville St., the three-story building nestled between Kimbrell’s Furniture and CVS Pharmacy in downtown Raleigh.
MOMA acquired the property for $3.75 million on May 31 from Sara Fumagalli with Raleigh Investing, LLC. It is MOMA’s fourth downtown Raleigh property, bringing its total downtown square footage to 69,500, said Doug Warf, MDO’s chief marketing officer. Olander is also the chief executive officer of MDO.
The 28,000-square-foot building was built in 1935. It has three stories plus a basement.
The property stretches to Salisbury Street, and the plan is to lease out around 3,000 square feet of space that will have an entrance on Salisbury, Warf said.
“We would like for the Salisbury part of the building to be retail,” Warf said. “We believe strongly in local retail.”
They are also searching for a single tenant to occupy the roughly 25,000 square feet remaining and are talking to a few potential tenants.
“The Fayetteville Street side will keep the historic feel with a nice clean refreshing of the facade,” Warf said. “The Salisbury Street side will see more true renovations in order to accommodate a potential retail tenant.
The property’s last tenant was the North Carolina State Bar, said listing broker Matthew Greenspon of Marcus & Millichap.
MOMA has three other downtown properties. It purchased O2 Fitness’ headquarters at 135 East Martin St., for $2.2 million in 2012. It purchased 207 E. Hargett St., which houses the Longleaf School of the Arts, for almost $2.2 million in 2013. In 2014, MOMA bought 107 Fayetteville St. for $1.2 million and currently leases it as office space.
In the early 2000s, 21-year-old Olander founded O2 Fitness, which now has over 20 locations in North and South Carolina. His father is Michael Olander, CEO of the Apple Gold Group, which operates over 120 Applebee’s restaurants, according to its website.
Evie Fordham: 919-829-4809, @eviefordham