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40,000-square-foot health club planned at Basin Street north Petaluma project

PETALUMA, July 24, 2008 -- A San Francisco-based operator of upscale family health clubs and corporate wellness programs in North America plans to open its first North Bay club in Petaluma early next year, an operation set to be one of the largest north of the Golden Gate Bridge.

Clubsource Development Partners has inked a deal with Basin Street Properties to open one of its Club One clubs in a custom-built two-story structure to front on the east side of Highway 101 just south of Old Redwood Highway.

When the club opens, scheduled for the first quarter of 2009, the 40,000-square-foot facility will feature two pools, a two-story water slide, fitness equipment, three group exercise studios, child care center, youth sports center, spa and community meeting rooms.

"There are not really any regulation pools in Petaluma, so this is a great opportunity for the community," said Basin Street Properties Vice President Scott Stranzl.

Club One operates 14 locations in Northern California, five Frog's Fitness centers in Southern California and manages 60-plus fitness and wellness programs for eBay, Motorola, AOL and Chevron. The 16-year-old company has 2,400 employees in 78 locations and had revenues of $76.3 million last year.

The Petaluma club will be located in the second building to be built in Basin Street's Redwood Business Center development at the southwest corner of North McDowell Boulevard and Old Redwood Highway.

The first building was completed last year and is occupied by companies such as Cyan Optics and Glass Mountain Capital, with 31,400 square feet still available. The club building originally was designed to be a 60,000-square-foot office building but was redesigned by the Gensler firm.

Two more office buildings of 56,000 and 90,000 square feet are planned.

Basin Street is negotiating a club discount for its tenants, as it has worked out with its hospitality properties, including Sheraton Sonoma County in Petaluma, according to Mr. Stranzl.

Greg Moss of NAI BT Commercial represented Clubone in the long-term lease deal.

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