fit republic & zenith west gymnastics · 2019. 12. 11. · zenith west gymnastics academy is an...
TRANSCRIPT
Fit Republic &Zenith West GymnasticsTACOMA, WASHINGTON
100% OCCUPIED BY TWO ENTERTAINMENT AND FITNESS BRANDS - FIT REPUBLIC
AND ZENITH WEST GYMNASTICS, WITH EASY ACCESS PROVIDED BY INTERSTATE 5
Fit Republic & Zenith West Gymnastics
31 MONTANA AVE, TACOMA, WA 98409
Overview
THE OFFERING provides the opportunity to acquire a fully occupied 67,000 SF two tenant entertainment complex. The property is located just off of the Tacoma Mall interchange of Interstate 5 and directly adjacent to a highly successful Costco Wholesale. Located within a thriving retail corridor with a dense surrounding residential population. The Property benefits from a strong regional draw and dense customer base. Both tenants operate on NNN lease structures with minimal Landlord responsibilities.
LEASEABLE SF67,000 SF
OCCUPANCY100%
PRICE PER SF $149
AVG CURRENT RENTS $11.28/SF
YEAR BUILT/REMODELED 1988/2018
PARKING±247 Spaces; 3.7/1,000 SF
Investment Summary
7.60%CAP
$9,960,000PRICE
PAGE 5
Overview
■ LOCATED WITHIN TWO BLOCKS OF FULL INTERSTATE 5 INTERCHANGE.
■ ONLY RECOGNIZED REGIONAL GYM SOUTHWEST OF THE HWY-16/I-5 INTERCHANGE.
■ SOUTH TACOMA LOCATION PULLS FROM A LARGE TRADE AREA (216,000+ RESIDENTS) AND IS EASILY ACCESSIBLE FROM FIRCREST, UNIVERSITY PLACE, MID-TACOMA, DOWNTOWN TACOMA, AND LAKEWOOD.
■ HIGH COMMUTER TRAFFIC LOCATION WITH OVER 124,000 VEHICLES PER DAY.
TheHighlights
Investment Highlights
FIT REPUBLIC IS OWNED AND OPERATED BY AN EXPERIENCED MULTI UNIT OPERATOR
■ PROXIMITY TO DAILY NEEDS RETAIL, HIGH-DENSITY RESIDENTIAL, AND EMPLOYERS.
■ NEW 15-YEAR LEASE EXECUTED BY A STRONG MULTI-UNIT OPERATOR OF FIT REPUBLIC.
■ SURROUNDED BY RETAILERS INCLUDING COSTCO, REI, BIG 5, BEVMO! AND LESS THAN ONE-HALF MILE FROM TACOMA MALL.
■ EXPOSURE AND SIGNAGE VISIBLE FROM S 38TH ST AND S STEELE ST, BOTH MAJOR ARTERIALS OF SOUTH TACOMA.
Investment Highlights
PAGE 7
Fit Republic is a multi-faceted gym with studios for hot yoga, barre, CrossFit, indoor cycling and more. Fit Republic is a membership-based gym that prides itself on its training methods that provides camaraderie, healthy competition, and community to ensure maximum results. Fit Republic owns, operates, and franchises over 55 gyms and health clubs across California and Washington.
The Operator of PNW WA, LLC owns and operates 10+ locations, including 6 Crunch Fitness gyms in the Portland MSA (under different entities). The lease benefits from a corporate guaranty provided by PNW Club Ventures Holding Company, LLC, PNW WA, LLC, and a personal guaranty by the Operator.
Fit RepublicOPERATORPNW WA, LLC
GRAND OPENING February 24th, 2018
About the Tenants
Zenith West Gymnastics Academy is an innovative gym that provides multi-level programs from elite athletes to recreational preschool classes. Zenith West is managed by two coaches with a combined experience of nearly 40 years. The Academy offers both recreational and competitive programs.
Zenith West Gymnastics
OPERATORZenith West, LLC
GRAND OPENINGSeptember 7th, 2019
THE LEASE BENEFITS FROM A PERSONAL GUARANTY PROVIDED BY THE OWNER AND
OPERATOR OF THE GYM.
About the Tenants
PAGE 9
MAJOR RETAILBest BuyBig 5 Sporting GoodsCostcoCost Plus World MarketDollar TreeFred MeyerGoodwillHobby Lobby
Home DepotLowe’sOffice Depot PetcoPetSmartR.E.I. Rite AidRoss Dress for LessSafeway
StarbucksTargetTJ Maxx Trader Joe’sValue VillageWalgreensWalmart SupercenterWhole Foods Market
TACOMA MALLBest BuyDick’s Sporting Goods
JC PenneyMacy’sNordstrom
Old NavySephora
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 858 7,139 10,708
Employees 13,691 103,121 140,638
Population 9,828 140,077 270,423
KEY 1-MILE 3-MILES 5-MILES
BusinessSummary
Surrounding Amenities
TACOMA MALLA SIMON MALL
WA-16
SUBJECTPROPERTY
S UN
ION
AVE
S UN
ION
AVE
129,000VPD
209,000VPD
BELLARMINEPREP SCHOOL
FOSS HIGH
SCHOOL
REDEVELOPMENT EXPECTED TO OPEN IN NOVEMBER/DECEMBER
2020Simon Property Group plans to add
shops and restaurant space in place of Sears.
It has been announced that this space will also be filled by:
• Nordstrom Rack (first Tacoma location – furthest South in the
Puget Sound)• ULTA Beauty
• Marcus Theaters
Surrounding Amenities
PAGE 11
209,000VPDWA-16
NALLEYVALLEY
EXCHANGE129,000
VPD
Connectivity
WSDOT is rebuilding the entire I-5/SR 16 Nalley Valley Exchange. The third phase of the project will include new HOV bridges and ramps, and the rebuilding of northbound and southbound I-5 approaching SR 16. This project is expected to be open early 2020.
Interstate 5 Construction
SUBJECTPROPERTY
S 38TH STS 38TH ST
44,922VPD
Connectivity
PAGE 13
MO
NTA
NA
AVE
Site Plan
SITE PLAN NOT TO SCALE
Site Plan
PAGE 15
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Income & Expense
PRICE $9,960,000CAPITALIZATION RATE 7.60%PRICE PER FOOT $149
CASH FLOW SUMMARYSCHEDULED INCOME PER SFBase Rent for the Period of: 1/1/2020 - 12/31/2020 $11.28 $756,000Rent Increases Over Base Rent $0.44 $1,320Total Effective Gross Income (EGI) $11.30 $757,320
OPERATING EXPENSES PER SFCAMS NNNProperty Taxes NNNInsurance NNNTotal Operating Expenses NNN
NET OPERATING INCOME $11.30 $757,320
12/11/2019 [ <www.CapitalPacific.com> ]
Financial Summary
Rent Roll
9/1/2019 - 8/31/2034 Lease Type: NNN
55,000 Pro-Rata: 82.09%
MONTHLY BASE RENT % INCREASE ANNUAL
RENT PSF
9/1/19 $52,000 $624,000 $11.359/1/24 $57,200 10.0% $686,400 $12.489/1/29 $62,920 10.0% $755,040 $13.73
11/19/2018 - 8/31/2024 Lease Type: NNN
12,000 Pro-Rata: 17.91%
MONTHLY BASE RENT % INCREASE ANNUAL
RENT PSF
11/19/18 $11,000 $132,000 $11.009/1/20 $11,330 3% $135,960 $11.339/1/21 $11,670 3% $140,039 $11.679/1/22 $12,020 3% $144,240 $12.029/1/23 $12,380 3% $148,560 $12.38
67,000 OCCUPIED 100.00%
$63,000
Fit RepublicLease Term:
Size (SF):
RENT SUMMARY
Zenith West GymnasticsLease Term:
Size (SF):
RENT SUMMARY
DATE
OPTIONS
DATE
OPTIONS
Comments: Personal and Corporate Guaranty provided by PNW Club Ventures Holding Corp, and PNW CA, LLC. Guarantor owns and operates 10+ locations, including 6 Crunch's in the Portland MSA; strong personal guaranty. Grand Opening was 2/24/2018.
2, 5-YR Options; 10% increase each term
TOTAL SF
TOTAL RENT/MONTH
Comments: Personal guaranty provided by the owner and operator of the gym. Tenant to pay additional $2,003.79/month through the primary term as reimbursement of $100,000 in T.I.s, amortized per a 7.50% interest rate; this payment to commence 9/1/2019 and extend through the end of the primary period. Grand Opening was 9/7/2019.
2, 5-YR Options; 180-Day Notice; Annual 3% Inc.
12/11/2019 [ <www.CapitalPacific.com> ]
RentRoll
Financial Summary
PAGE 17
TENANT Fit Republic - PNW WA, LLC
GUARANTY Personal Guaranty & Corporate Guaranties – PNW Club Ventures Holding Corp. and PNW CA, LLC
Premise & TermFIT REPUBLIC
Lease Abstract
CAMSTenant pays their prorata share of CAMs, reserves, and a Management Fee based on 5% of base rent. Utilities are paid directly by Tenant to the billing authority.
TAXESTenant pays their prorata share of taxes.
INSURANCETenant pays their prorata share of Landlord’s insurance premiums.
TENANT’S OBLIGATIONSAll non-structural related maintenance & repair, including all plumbing, electrical, and operating systems, and the maintenance, repair, and replacement of the HVAC.
LANDLORD’S OBLIGATIONSAll maintenance, repair, and replacement related to the building structure and roof.
Expenses
Maintenance & Repair
Lease Abstract
PAGE 19
TENANT Zenith West - Zenith West, LLC
GUARANTY Personal Guaranty
Premise & TermZENITH WEST GYMNASTICS
Lease Abstract
CAMS Tenant pays their prorata share of CAMs, including a management fee. Controllable CAM is capped at a 5% increase year-over-year (controllable CAM excludes taxes, insurance, security, snow removal, & utilities). CAM to include reimbursement of HVAC if the expense is above $5,000 (otherwise a direct Tenant responsibility).
TAXESTenant pays their prorata share of property taxes, excluding an increase in taxes related to a reassessment of value in relation to a change of ownership.
INSURANCE Tenant pays their prorata share of Landlord’s insurance premiums.
TENANT’S OBLIGATIONSAll non-structural related maintenance & repair, including all plumbing and mechanical operating systems, and the HVAC. If HVAC expense exceeds $5k, such expense will be amortized and Landlord will bill Tenant via CAMs.
LANDLORD’S OBLIGATIONSAll maintenance, repair, and replacement related to the building structure and roof.
EXCLUSIVE USE Gymnastics.
LeaseProvisions
Maintenance& Repair
Expenses
Lease Abstract
PAGE 21
INTERIOR PHOTOGRAPHYZENITH WEST GYMNASTICS
Featured Photography
INTERIOR PHOTOGRAPHYFIT REPUBLIC
Featured Photography
PAGE 23
Tacoma, Washington
TACOMA is located on the Puget Sound, and serves as the center of business activity for the South Sound region. Just south of Seattle, Tacoma is the third largest city in the state of Washington. Known for its world-renowned glass art, Tacoma has a vibrant urban culture. With close access to the Puget Sound banks and Mount Rainier, tourists visit frequently to enjoy the outdoor activities that Tacoma provides, on land and on the water.
Location
TOP EMPLOYERS IN TACOMA are primarily government operations and health care providers, which account for the top five employers. Although these employers are driving the local economy, the driving force behind the population growth lies heavily on the city’s affordability. Comparable to the neighboring Seattle market, Tacoma’s average home price of $241,000, is less than 40% of the average home price in Seattle. Affordable housing and a strong job growth rate of 23% over the last 20 years has allowed Tacoma to attract more residents and a larger labor force.
EmploymentGrowth
KEY 5 MINS 10 MINS 15 MINS
DriveTime
POPULATION
5 MINS 10 MINS 15 MINS
2010 12,372 119,408 282,861
2019 14,096 129,821 308,451
2024 15,139 137,600 326,685
2019 HH INCOME
5 MINS 10 MINS 15 MINS
Average $59,179 $66,068 $73,395
Median $48,745 $52,609 $54,732
Location
PAGE 25
Contact Us
We’d love to hearfrom you.
The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC.
SEAN [email protected]: 503.675.8378
SEAN [email protected]: 206.693.3352
DAVID [email protected]: 206.693.3349
Contact Us
