CRUNCH FITNESS - OFFERING MEMORANDUM - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
OFFERING MEMORANDUM NEW YORK | CHICAGO | SAN FRANCISCO | TAMPA | ATLANTA
T R A D E N E T L E AS E W I T H C O N F I D E N C E
CRUNCH FITNESS
FITNESS CENTER | CINCINNATI MSA
DISCLOSURE
All materials and information received or derived from B Plus E financial data or assumptions. B Plus E NY LLC does not serve
NY LLC, its directors, officers, agents, advisors, affiliates, and/or as a financial advisor to any party regarding any proposed
any third-party sources are provided without representation or transaction. All data and assumptions regarding financial
warranty as to completeness, veracity, or accuracy; condition of performance, including that used for financial modeling
the property; compliance or lack of compliance with applicable purposes, may differ from actual data or performance. Any
governmental requirements; developability or suitability; estimates of market rents and/or projected rents that may be
financial performance of the property; or projected financial provided to a party do not necessarily mean that rents can be
performance of the property for any party’s intended use or established at or increased to that level. Parties must evaluate
any and all other matters. any applicable contractual and governmental limitations as
well as market conditions, vacancy factors, and other issues in
Neither B Plus E NY LLC, its directors, officers, agents, advisors, order to determine rents from or for the property.
nor affiliates makes any representation or warranty, express or
implied, as to accuracy or completeness of the any materials Legal questions should be discussed by the party with an
or information provided, derived, or received. Materials and attorney. Tax questions should be discussed by the party with
information from any source, whether written or verbal, that a certified public accountant or tax attorney. Title questions
may be furnished for review are not a substitute for a party’s should be discussed by the party with a title officer or attorney.
active conduct of its own due diligence to determine these Questions regarding the condition of the property and
and other matters of significance to such party. B Plus E NY LLC whether the property complies with applicable governmental
will not investigate or verify any such matters or conduct due requirements should be discussed by the party with appropriate
diligence for a party unless otherwise agreed in writing. engineers, architects, contractors, other consultants, and
governmental agencies. All properties and services are
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT marketed by B Plus E NY LLC in compliance with all applicable
INVESTIGATION AND DUE DILIGENCE. fair housing and equal opportunity laws.
Any party contemplating or under contract or in escrow for a
transaction is urged to verify all information and to conduct
their own inspections and investigations including through
appropriate third-party independent professionals selected
by such party. All financial data should be verified by the party
including by obtaining and reading applicable documents and
reports and consulting appropriate independent professionals.
B Plus E NY LLC makes no warranties and/or representations
regarding the veracity, completeness, or relevance of any
2 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM
TABLE OF CONTENTS
EXECUTIVE SUMMARY ..................................... 04
INVESTMENT HIGHLIGHTS .............................. 05
LEASE ANALYSIS .............................................. 06
TENANT OVERVIEW .......................................... 07
SURROUNDING TENANT MAP .......................... 08
AREA MAP ......................................................... 09
LOCATION OVERVIEW ...................................... 10
Spencer Henderson DEMOGRAPHICS ............................................. 12
Associate Director
415.315.9287
OUR STORY ...................................................... 13
shenderson@benetlease.com
Camille Renshaw
CEO & Co-Founder
646.701.4536
crenshaw@benetlease.com
Brooks Hower
KY License #: 215383
John Hoagland
KY License #: 211238
3 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM
EXECUTIVE SUMMARY ASKING PRICE $4,000,000 ASKING CAP RATE 7.25% EX ECUTIV E S UM MAR Y TENANT Crunch Fitness ADDRESS 77 Spiral Drive, Florence, KY 41042 ASKING PRICE $4,000,000 ASKING CAP 7.25% REMAINING TERM +/- 8 Years RENT INCREASES 1.5% Annually PPSF $191.24 NOI $290,127 LEASE TYPE NNN BUILDING SIZE +/- 20,916 SF LAND AC +/- 2.04 AC PARKING +/- 128 Spaces YEAR BUILT | RENOVATED 1994 | 2014 PROPERTY TYPE Fitness Center 4 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM
INVESTMENT HIGHLIGHTS
HIGHLIGHTS
NNN LEASE
This investment features a NNN lease, which requires no landlord responsibility.
1.5% ANNUAL RENT INCREASES
This lease features 1.5% annual increases, providing a natural hedge against
inflation and increasing return over the life of the investment.
IN-LINE LOCATION WITHIN DENSE RETAIL CORRIDOR
This Crunch Fitness is located in a shopping center with national tenants such as
The Home Depot, JOANN, and Kohl’s. The shopping center is located in a very dense
trade area with many national tenants such as ALDI, Meijer, Best Buy, Chick-Fil-A,
Walmart, Sam’s Club, Ashley Home Store, and many others.
LOCATED IN THE GREATER CINCINNATI MARKET
The subject property is located in Florence, KY, which is ~7 miles outside of
downtown Cincinnati. This is posed for growth as many companies such as Amazon
are investing in the Greater Cincinnati market.
TOP HEALTH CLUB IN THE UNITED STATES
Crunch Fitness ranked 12th out of 100 health clubs in terms of total revenue in
2018; the company had revenue of +/- $180M in 2018. In July of 2019, Jim Rowley,
CEO of Crunch, said his team plans to double the size of the Crunch Fitness brand 75
over the next three to five years. Crunch currently has +/- 300 locations and +/- 1.3M
members.
GROWTH OF HEALTH AND WELLNESS INDUSTRY
Health club membership has continued to grow as people have become more
conscious about their health and wellness. There are over 62M health club members
CINCINNATI,
in the United States, representing just 19% of the population. OHIO
NEW $1.5B AMAZON HUB LOCATED WITHIN 1 MILE
The Cincinnati/Northern Kentucky International Airport is within 1 mile of the
FLORENCE,
subject property. This airport is a hub for both Amazon Air and DHL Aviation. KENTUCKY 71 OHIO R
IVE
R
Additionally, Amazon recently announced a $1.5B expansion effort that is expected
to bring 2,700 more jobs to the area.
SIGNIFICANT FORECASTED POPULATION GROWTH
The area within a 1-mile radius of the property is expected to experience a ~4.80%
population increase between 2019-2024.
71
5 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM
LEASE ANALYSIS
CRU NCH FITNES S
NOI $290,127
RPSF $13.87
LEASE EXPIRATION September 30, 2027
LEASE TERM 10 Years*
REMAINING LEASE TERM +/- 8 Years
RENT INCREASE 1.5% Annually
RENEWAL OPTIONS 4; 5-Years
LEASE TYPE NNN
LANDLORD RESPONSIBILITIES None**
*Operations began in 2014; lease amended in 2017 for new 10-year term.
**Tenant responsible for all costs related to shopping center.
RENT SCH ED UL E
DATES NOI RPSF
10/1/2019 - 9/30/2020 $290,127 $13.87
10/1/2020 - 9/30/2021 $294,479 $14.08
10/1/2021 - 9/30/2022 $298,896 $14.29
10/1/2022 - 9/30/2023 $303,380 $14.50
10/1/2023 - 9/30/2024 $307,930 $14.72
10/1/2024 - 9/30/2025 $312,549 $14.94
10/1/2025 - 9/30/2026 $317,237 $15.17
10/1/2026 - 9/30/2027 $321,996 $15.39
6 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM
TENANT OVERVIEW | CRUNCH FITNESS
CRUNCH FITNESS Founded in 1989, Crunch Fitness is an industry-leading
fitness center that serves over 1.3 million members. Today, the company
operates more than 300 locations in the United States and Australia. There
are also promises to open an additional 1,000 franchise locations across 29
states and 5 countries. The gyms provide best-in-class strength and cardio
equipment and all of the essentials to have a great workout. Beyond this,
Crunch also offers a variety of fitness options such as personal training,
yoga, Zumba, cycling studios, hip hop aerobics, and many other group
classes. Crunch also features amenities including tanning, HydroMassage
Therapy, locker rooms, and showers. In addition, Crunch offers members a
unique suite of online services as well, including online fitness and nutrition
programs that include videos. Crunch Fitness has established itself as the
number one high-value/low-price brand in the country. Since 2010, the
company has seen a 42% compound annual growth rate in members.
CRUNCH FITNESS KEY METRICS
+/- $180M in corporate revenue (corporate locations +
franchise fees) for 2018.
+/- 300+ locations across 29 states and 5 countries.
1,000+ commitments from franchisees to build more
locations.
+/- 1.3 million members.
6,400+ median members per club.
FITNESS GURUS
Fitness Gurus is a dominate franchisee in the Cincinnati,
Columbus, and Northern Kentucky markets.
Operate 6 locations.
7 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM
SURROUNDING TENANT MAP
CINCINNATI/NORTHERN KENTUCKY AIRPORT (CVG)
N 275 75
• Ranks 4th in North America for Total Cargo Operations
• Fastest Growing Cargo Airport in North America
• Global Shipping Hub for Amazon Air and DHL Aviation
S
• 8.9M Passengers in 2018
• $4.4B Economic Impact
BECKFIELD COLLEGE | NURSING SCHOOL
D
0 VP
,00
SCHENKER LOGISTICS | 541,000 SF 150
-
/
5+
I-7
275
ST. ELIZABETH FLORENCE | 142 BEDS
SUMMIT HILLS COUNTRY CLUB
75
FLORENCE MALL | 101 STORES
KENTON COUNTY
PUBLIC PARK
CINCINNATI
75 7MI NE
8 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM
AREA MAP
N
S
75
DHL
AMAZON DISTRIBUTION CINCINNATI WAYFAIR DISTRIBUTION
71
NORTHERN KENTUCKY UNIVERSITY
TOYOTA AUTO PARTS DISTRIBUTION
71
75
75
OHIO
O H I O R I VER
CITI BANK CORPORATE OFFICE
KROGER DISTRIBUTION
KENTUCKY
9 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM
LOCATION OVERVIEW
GREATER CINCINNATI is a metropolitan area that includes parts of Ohio, Kentucky,
and Indiana. The population is about 2.2 million, making it the 29th largest in the
United States. The area is anchored by the city of Cincinnati, which is located on
the northern side of the confluence of the Licking and Ohio rivers. Cincinnati is
currently the fastest-growing of all major Midwestern cities in terms of economic
output. Powering the growth is its professional and business services sector, which
includes legal, accounting, architectural, engineering, advertising, and other
services. Fortune 500 companies headquartered in Cincinnati include Proctor &
Gamble, The Kroger Company, Macy’s, and General Electric. Manufacturing accounts
for 12.7% of employment by the industry sector.
PROFESSIONAL SPORTS TEAMS: Cincinnati Reds (MLB), Cincinnati
Bengals (NFL), and FC Cincinnati (MLS)
MAJOR FREEWAYS: I-71, I-74, I-75
COLLEGES AND UNIVERSITIES: University of Cincinnati, Xavier
University, Miami University, Northern Kentucky University
AIRPORTS: Cincinnati/Northern Kentucky International Airport
(CVG), Lunken Airport, Butler County Regional Airport
MAJO R EMP LOYERS
COMPANY NAME NUMBER OF EMPLOYEES
THE KROGER COMPANY 20,000+
UNIVERSITY OF CINCINNATI 15,000+
CINCINNATI CHILDREN’S HOSPITAL MEDICAL CENTER 12,000+
THE PROCTER & GAMBLE COMPANY 12,000+
TRIHEALTH, INC. 10,000+
UC HEALTH 8,000+
GE TRANSPORTATION 7,500+
ST. ELIZABETH HEALTHCARE 7,000+
CINCINNATI, OH
FIFTH THIRD BANK 7,000+
10 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COMLOCATION OVERVIEW | CONTINUED
AMAZ O N P R I M E A I R H U B
AMAZON’S $1.49 BILLION
PRIME AIR HUB
+/- 1.00 AC
+/- 3M SF & 350K SF Buildings
+/- 100 Aircraft Parking
Positions
NORTHERN KENTUCKY ECONOMIC DEVELOPMENT +/- 2,700 Jobs
NORTHERN KENTUCKY TRI-ED has been named one of the top 15
economic development groups in the US. The area benefits from
low energy costs, deep talent pools, and its central location. Top
DHL & KROGER
industries in the region include automotive manufacturing, aerospace
manufacturing, financial services, food, life sciences, and logistics.
Click To View Site.
NORTHERN KENTUCKY MARKET STATISTICS
Cincinnati Metropolitan Population +/- 2.1 Million
100+ Logistics Companies
1-Day Drive or 90-min flight from 2/3 of US Population
2-Day Drive From 90% of US Population DHL GLOBAL HUB KROGER DISTRIBUTION CENTER
40+ Automotive Companies
$339M invested since 2009 Kroger purchased facility in 2017
CVG is 8th largest cargo airport in North America, 34th for $60M
in the world 1 of 3 in the world
Invested additional $17M in 2018
#1 most cost-friendly location among large US cities 181 Acres +/- 674,000 SF
11.3% cost savings for R & D operations compared to
3,300 Employees +/- 250 Employees
national average
11 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COMDEMOGRAPHICS
P OPULAT IO N
2 MILES 5 MILES 10 MILES
2019 TOTAL POPULATION 29,480 150,100 443,240
2024 POPULATION 31,015 155,694 454,209
POP GROWTH 2019-2024 5.21% 3.73% 2.47%
AVERAGE AGE 38.10 37.30 37.30
HO US EHOL DS 10 MILES
2 MILES 5 MILES 10 MILES
2019 TOTAL HH 12,239 57,438 172,920
5 MILES
HH GROWTH 2019-2024 5.11% 3.71% 2.49%
MEDIAN HH INCOME $49,483 $66,677 $59,068 2 M IL E S
AVG HOUSEHOLD SIZE 2.40 2.60 2.50
HO US IN G
2 MILES 5 MILES 10 MILES
MEDIAN HOME VALUE $134,854 $164,734 $159,138
MEDIAN YEAR BUILT 1977 1988 1971
12 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COMTHIS IS OUR STORY
B+E is a modern investment brokerage firm, specializing
in net lease real estate and 1031 exchanges. We help
clients buy and sell single tenant real estate. Founded
by deeply experienced brokers, B+E redefines trading
through an intuitive end-to-end transaction platform
comprising of user-friendly dashboards and an AI-driven
exchange — all leveraging the largest data set in the net
lease industry.
Complementing senior talent with exceptional
technology, B+E's proprietary process affords greater
speed, unrivaled transaction efficiencies, and stronger
asset value. With offices in New York, Chicago, Atlanta,
Tampa, and San Francisco, our brokers trade property for
our clients across the US. B+E allows virtually anyone to
confidently trade net lease real estate.
13 CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COMTRADE NET LEASE WITH CONFIDENCE
New York Chicago San Francisco Tampa Atlanta
261 Madison Ave., 9th Floor 980 North Michigan Ave. 303 Sacramento St., 4th Floor 2303 North Florida Ave. 1175 Peachtree St. NE
New York, NY 10016 Chicago, IL 60611 San Francisco, CA 94111 Tampa, FL 33602 Atlanta, GA 30361
646.770.0659 | info@benetlease.comYou can also read
