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The Truth About Steel Gym

Posted on 27 May 2014

            The rumor mill has been grinding its maze of speculation, mixed with misinformation,, about the future of Steel Gym Fort Lauderdale, located within the Shoppes of Wilton Manors. Once the site of Better Bodies Gym, and then Island City Health & Fitness, the location has seen its share of owners come and go within the past nine years, so there’s some reason to pay attention when word hits the streets that now Steel Gym is in danger of closing its doors.

            Here are the facts: On April 23, 2014, lawyer George Castrataro filed a motion for voluntary Chapter 11 bankruptcy on behalf of the Steel Gym Fort Lauderdale LLC, the holding company of this branch of the Steel Gym enterprise with other locations in Miami, New York and Fire Island.

            On the surface, the court documents reveal that the Wilton Manors location has filed for protection against the gym’s landlord, Rivercrest Realty Investors. Additional creditors listed on the filing are FastPrintz LLC and attorney Dana A. Clayton, with the Ackerman law office’s Miami location.

            At one point last February, Rivercrest Realty served paperwork on Steel Gym Fort Lauderdale LLC for non-payment of rent, and the rumors began immediately flying among gym members that the facility was about to be closed and padlocked. The filing for voluntary Chapter 11 bankruptcy has only added fuel to the gossip.

            As with all things, there are several sides to every story. In an effort to stop the rumors and replace them with facts, the Agenda did its own investigation into the situation and discovered a very different reality.

            I am definitely in this for the long haul,” gym owner Ken Hunt told the Agenda,” dispelling any hint that the gym is about to close. “We are not closing,” he said. “What I am doing is fighting a constant and on-going battle (with the owners of the Shoppes of Wilton Manors). Since the moment we assumed ownership from Island City Health & Fitness, we have been besieged by false promises from the landloard.

            “I didn’t realized the magnitude of the issues with the physical structure of the building. We’ve had a leaking roof that has caused damage within the gym, including warping the hardwood workout floor in the aerobics room. There are ceiling tiles that are in the men’s locker room that need to be replaced but we cannot touch them,” Hunt said, saying that his hands are tied given the unresponsiveness of the landlord. Ditto the bike rack in front of the gym that is neither owned nor maintained by Steel Gym, but utilized by its membership.

            “When I bought this gym, I saw a diamond in the rough. I had great plans for Steel Gym Fort Lauderdale and still do. But every time I turn around, I get slapped in the face with some other issue, rumor, or inexcusable behavior on the part of the part of Rivercrest.”

            Parking, always an issue at the Shoppes of Wilton Manors, recently became worse with the padlocking of the rear parking lot that runs behind the entire strip mall complex, effectively removing dozens of parking spots from the mix.

            When Ken Hunt failed to make his customary weekly appearance at Steel Gym Fort Lauderdale last February, members suggested that he had given up on Wilton Manors. A hulking bodybuilder who is tough to miss, Hunt was, in fact, hospitalized in New York with double pneumonia, having allowed a cold to slip into bronchitis and then pneumonia. “I’m here every week, traveling between New York, Miami, and Fort Lauderdale.” But while his other branches are successfully maintaining costs and increasing members, the Fort Lauderdale location is a hotbed of unsubstantiated rumor. “I’ve never seen a place like this in my life. Everyone wants to say something negative,” Hunt adds.

            There is much to be said positively in support of Ken Hunt. His various organizations have given publically and privately to LGBT causes and organizations. Locally, one only has to look at the 75 or so memberships that Hunt has donated to the Brian Neal Fitness & Health Foundation, whose members can be seen working out in group classes multiple times a week. Additionally, Hunt has offered his space as a rehearsal hall for dancers competing in the annual “Dancing with the South Florida Stars,” traditionally a sold-out event.

            For seniors, Steel Gym offers free memberships to those over 62 through the Silver Sneakers program, an insurance-based preventative maintenance issue. The benefits for the elderly are witnessed daily, including packed Silver Sneakers group classes.

            While it is time to put a stop to the rumors swirling around the future of Steel Gym, the problem is compounded when one realizes that Steel Gym is not the only tenant with complaints against Rivercrest. In the future, the Agenda will be giving full voice to those who find their current leases and storefronts to be unworkable. In the meantime, Steel Gym is here to stay. As for the rest, well, we’ll keep you posted.

           

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2 Responses to “The Truth About Steel Gym”

  1. Johnny C. says:

    My fiancé and I are opening our new business and looked into leasing the old Poverello location. The landlords have priced the units available at double per square foot that you’d pay in Las Olas. The owners are trying to vacate that section of the shopping center so they can put up a condo complex once the market rebounds. By keeping that section vacant they can write it off as a loss on their taxes, until they are ready to scrape it and build what will bring them better profits.

  2. kelly, CPA says:

    keeping the section vacant has no bearing on what can be written off. The building is depreciated at the same rate whether rented or not and its always better to have income to offset the depreciation by the differential between the income and the tax rate (except for the shorter depreciation life of leasehold improvements) It more likely has to do with not wanting to be legally contracted with leases when OR if they do decide to build condo’s. Steel gym, based on the story above, should aggressively litigate lease violations and withhold rent if possible.


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