Life Time Group Holdings has secured a lease for a new 85,000‑sq‑ft athletic club at 175 Third Street in Brooklyn’s Gowanus Wharf development, positioning the company as an anchor tenant in a high‑density, affluent neighborhood. The club will feature a year‑round rooftop beach club, hot and cold pools, a sauna, a bar, a co‑ed wet suite, and a coworking lounge, and will offer pickleball, longevity services, and a full suite of Life Time’s health and wellness programming for members aged 90 days to 90+ years.
The lease is part of a four‑project campus being developed by Charney Companies and Tavros Capital, and will join Life Time’s existing New York City destinations in Atlantic Avenue and DUMBO, as well as upcoming locations in Bryant Park and The Brooklyn Tower. The Gowanus club is slated to open in 2026, adding a premium, resort‑style destination to Life Time’s portfolio and expanding its presence in a high‑density, affluent Brooklyn neighborhood.
Life Time’s recent financial performance underscores the strategic importance of this expansion. In Q3 2025, the company reported revenue of $782.6 million, up 4.0% from $750.0 million in the prior quarter and 1.5% from $775.0 million a year earlier, driven by strong demand in its core membership and in‑center spending segments. Earnings per share of $0.41 beat consensus estimates of $0.33, a $0.08 or 24% surprise, largely due to disciplined cost control and a favorable mix of high‑margin services. Net income rose 147% to $102.4 million, and adjusted EBITDA increased 22% to $220.0 million, reflecting the company’s ability to scale its premium offerings while managing operating leverage.
Management highlighted the Gowanus lease as a key component of its 2026 expansion plan, which includes 12–14 new clubs. Parham Javaheri, Life Time’s Executive Vice President, said the company is “excited to bring a world‑class wellness experience to the Gowanus community, a rapidly transforming neighborhood that offers a unique blend of residential, retail, and waterfront amenities.” The lease aligns with Life Time’s strategy of anchoring large mixed‑use developments in affluent urban markets, a model that has driven membership growth and revenue expansion in recent years.
The market has responded positively to Life Time’s recent earnings, with the company’s stock rising after the Q3 2025 results. Investors cited the company’s ability to beat EPS and revenue expectations, strong net income growth, and an upward revision of full‑year comparable center revenue guidance as key drivers of the positive reaction. The Gowanus lease is expected to reinforce investor confidence in Life Time’s growth trajectory and its ability to generate recurring revenue from premium club memberships and in‑center spending.
The lease also provides a strategic foothold in a high‑density, affluent Brooklyn neighborhood, positioning Life Time to capture a growing segment of health‑conscious, high‑income consumers. By anchoring the Gowanus Wharf development, Life Time enhances the value of the mixed‑use project, potentially driving higher foot traffic and membership sign‑ups, while the club’s extensive amenities—such as a rooftop beach club and coworking lounge—align with the company’s broader vision of integrating wellness into everyday life.
Overall, the lease signing represents a material expansion that supports Life Time’s growth strategy, strengthens its presence in New York City, and aligns with its recent strong financial performance. The announcement is a significant event that will likely influence long‑term investment models and strategic outlooks for the company.
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