Los Portales Association v. Fitness International CA4/2

BACKGROUND

In 2015, defendant Fitness entered into a retail lease agreement with the

predecessor in interest of plaintiff Los Portales, to lease certain premises, described in the

agreement, located in a then proposed shopping center at Menifee Lakes Plaza, in

Riverside County, including the right to use common areas. The primary term of the

lease was for 184 months (15 years, 4 months), with options to extend the term for three

consecutive 5-year terms. The rent for the premises comprised a minimum rent of

$886,160.00 per year ($73,846.67 per month), plus a share of the common area expenses,

insurance, and a pro rata portion of the real estate taxes. The primary use of the premises

was for the operation of a health club and fitness facility, along with various ancillary or

incidental uses of a retail nature as well as for other related uses. However, the lease

terms also permitted defendant to change its use of the premises to any alternate legal use

which is not otherwise expressly prohibited by the Lease and is not in conflict with any

exclusive use agreement then in effect.

In 2020, the Covid-19 pandemic interrupted businesses, and on April 6, 2020,

defendant…