Trophy Net Lease Investment LA Fitness at The Mix - 8400 Balboa Blvd | Northridge, CA 91329
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Trophy Net Lease Investment
LA Fitness at The Mix
Actual Property Image
8400 Balboa Blvd | Northridge, CA 91329
EXCLUSIVELY MARKETED BY: 2
ADAM SCHERR
Lic. # 01925644
2701 Ocean Park Blvd, Suite 140
Santa Monica, CA 90405
844.4.SIG.NNN
310.853.1266 | DIRECT
adam@SIGnnn.com
www.SIGnnn.com
© 2018 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum,’ has been obtained from sources believed to be reliable. Sands
Investment Group does not doubt its accuracy, however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It
is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine it’s accuracy and
completeness. Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no
guarantee or assurance these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group
encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction.
TABLE OF CONTENTS 3
LA Fitness | 8400 Balboa Blvd | Northridge, CA 91329
Investment Overview
Investment Summary
Investment Highlights
Area Overview
City Overview
Demographics
Property Overview
Location Map
Retail Maps
Tenant Summary
Tenant Profile
Lease Abstract
Lease Summary
Rent Roll
INVESTMENT OVERVIEW 4
INVESTMENT SUMMARY 5
Sands Investment Group is pleased to present for sale the LA Fitness located at 8400 Balboa Blvd in Northridge,
California, in the heart of the San Fernando Valley. The asset is brand new construction with planned completion in Q2
of 2018. The building will be approximately 37,000 SF.
OFFERING SUMMARY
PRICE $21,460,000
CAP 5.00%
NOI $1,073,000
PRICE PER SF $580
YEARS REMAINING 15 Years
LEASE GUARANTY Corporate
PROPERTY SUMMARY
ADDRESS 8400 Balboa Blvd
Northridge, CA 91329
COUNTY Los Angeles
BUILDING AREA 37,000 SF
LAND AREA 4.1 AC
BUILT 2018
HIGHLIGHTS RARE GENERATIONAL OPPORTUNITY
•
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The property is anchored by some of the top high-tech companies in the
country including: Harman (subsidiary of Samsung) and other household
NEWLY – CONSTRUCTED OUTPARCEL ANCHORED BY name high-tech companies
LEADING HIGH TECH COMPANIES
• Adjacent to existing creative office/industrial campus that will include
• Long-term credit net lease – Brand new 15 year lease with over 3,500 daytime employees on site once complete, as well as a full
minimal Landlord responsibilities compliment of restaurants
STRONG HEDGE AGAINST INFLATION
• Market leading increases at 12% every 5 years during the
initial term and throughout the options NATIONAL COMPANY – LEADING INDUSTRY EXPERIENCE
• Nation’s largest health club brand – LA Fitness is recognized as one of
the leading fitness clubs throughout the country with over 800 locations
SIGNIFICANT NOI GROWTH
in the United States and Canada
• With embedded rent increases throughout the lease term, • LA Fitness has the highest revenues ($1.9212 billion) of any health club
the NOI is projected to grow more than $285,000 (21%) in America and has a long term track record of international expansion
over the life of the lease
INTERNET RESISTANT TENANT
• Health club industry revenue has doubled in the last 10 AFFLUENT DENSE LOS ANGELES MSA DEMOGRAPHICS
years
• 3-Mile radius: 292,586 people with an average HH income of $74,490
DELIVERED FREE & CLEAR • 5-Mile radius: 709,337 people with an average HH income of $81,845
• The property will be delivered with no debt, allowing seller • 10-Mile radius: 1,563,629 people with an average HH income of
to accommodate 1031 trade buyers in need of a quicker $92,985
closing to meet tight exchange timeframes
AREA OVERVIEW 7
CITY OVERVIEW 8
Northridge, California | Los Angeles MSA
Northridge, CA Economy San Fernando Valley, CA
Once called North Los Angeles, the neighborhood Areavibes.com ranks Northridge among the best Nestled in San Fernando Valley and circled by the
known as Northridge is a jewel of the San Fernando neighborhoods in Los Angeles County, where gorgeous mountains of the Tranverse Ranges,
Valley, a neighborhood within Los Angeles. Home to Northridge receives an A or A+ grade in Housing, Northridge is a dynamic and bustling neighborhood
California State University, Northridge is a part of Weather, and Amenities, and has a total Livability located in the heart of the Valley, convenient to
Greater Los Angeles, the second-largest urban region score of 80, putting it 8% above the national average. Calabasas, Simi Valley and Porter Ranch. With its
in the United States with an estimated population of Alongside some of the best public and private schools brightly-lit bistros, mixed-use lofts, boutique hotels
18.7 million. Bordered on almost all four sides by in the region, Northridge is also home to and world-class dining, San Fernando Valley is home
freeways, Northridge is a short drive away from the Northridge Fashion Center, the largest shopping to entertainment industry giants such as Disney,
downtown Los Angeles and the Hollywood Hills. It is mall in the area, and one of only two hospitals in the Warner Brothers, NBC Universal, Sony, Nickelodeon,
home to Van Nuys Airport, a part of Los Angeles San Fernando Valley certified for treating life- Telemundo, ESPN and CBS among others, spawning a
World Airports. threatening injuries. dynamic creative enclave that continues to buzz with
energy.
NORTHRIDGE AERIAL MAP 9 LA Fitness | 8400 Balboa Blvd | Northridge, CA 91329
DEMOGRAPHICS 10
LA Fitness | 8400 Balboa Blvd | Northridge, CA 91329
Population
3-MILE 5-MILE 10-MILE
292,586 709,337 1,563,629
Average Household Income
3-MILE 5-MILE 10-MILE
$74,490 $81,845 $92,985
Estimated Employees
3-MILE 5-MILE 10-MILE
97,121 251,012 590,67311 LA Fitness | 8400 Balboa Blvd | Northridge, CA 91329
12 Balboa Balboa Ranch Northridge Pointe Balboa Village Village Point Apartments Apartments Apartments Apartments Apartments
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PROPERTY OVERVIEW 14
Amenities at The Mix at Harman Campus include a food truck pavilion, Town Square Park, outdoor meeting spaces,
outdoor dining, bocce ball and a barbeque.
THE MIX AT HARMAN CAMPUS
BY THE NUMBERS
Building Area: 791,000 Square Feet
Land Area: 44 Acres
Parking Spaces: +/-2,400
Average Employees on Site: +/-3,500
Office Tenants: 17
Restaurant Tenants: 8
Traffic Counts: 155,628 Cars Per Day
(Balboa Blvd & Roscoe Blvd)PROPERTY OVERVIEW 15
The Mix at Harman Campus | Northridge, CA
About The Mix
LA Fitness is a part of The Mix at Harman Campus (The Mix) a
reimagined 44 acre corporate campus with over 3,500
employees on the property. Located in Northridge the property
sits in the geographical center of the San Fernando Valley. Its
former assembly plants and industrial buildings have been
transformed as an innovative consortium of creative office and
retail suites where employees can work, play and thrive. Wood
beams and brick-enclosed open air seating will be perfect for
enjoying the easy California breeze while noshing culinary
creations from onsite restaurants. Campus activities like bocce
ball and walking the trail will keep employees relaxed and
energized. 8500 Balboa has been reinvigorated as creative office
space featuring a striking red brick, wood and metal entry
façade that will impress clients and make employees proud and
excited to come to work every day.
Demographics
There are 1,563,629 people with an average household income of
$92,985 within a 10 mile radius of The Mix. Included in these areas are
the executive housing areas of Porter Ranch, Encino, Sherman Oaks,
Tarzana, Woodland Hills, Calabasas, Burbank, Studio City, Bel Air,
Hollywood Hills, West Los Angeles and Santa Monica. Additionally, the
project is located at the center of one of the most prolific and educated
labor sources in the country, with 590,673 employees also located within
the 10 mile radius of the campus. The campus is located within minutes
from California State University, Northridge, and is a fertile recruiting
ground from such educational institutions as USC, UCLA, Pepperdine
University, California State LA and LA Pierce College. Numerous technical
colleges and schools are also located within the immediate area including
DeVry University, Phillips College, ITT Technical Institute, Columbia
College of Hollywood, New York Film Academy, UEI, Kaplan College,
Concorde Career College, Platt College and West Coast University.TENANT & LEASE SUMMARY 16
TENANT PROFILE 17
Founded in Southern California in 1984, LA Fitness is a privately owned chain of health clubs
in the United States and Canada. LA Fitness is one of the fastest growing sports club chains
in the U.S that has acquired many other fitness clubs including Pure Fitness Arizona, Bally
Total Fitness and Lifestyle Fitness, expanding to over 800 clubs in 32 states and Canada.
LA Fitness offers state-of-the-art health clubs with highly trained staff that specialize in
providing effective workout options for all members. LA Fitness remains a privately owned
company, with major ownership interests help by private equity firm Seidler Equity Partners,
CIVC Partners and Madison Dearborn Partners.
COMPANY TYPE FOUNDED # OF LOCATIONS HEADQUARTERS WEBSITE
Private 1984 800+ Irvine, CA lafitness.comLEASE ABSTRACT 18
TENANT LA Fitness
GUARANTOR Fitness International, LLC
PREMISES A building of approximately 37,000 SF
RENT COMMENCEMENT EST. August 1, 2018
LEASE EXPIRATION EST. July 31, 2033
LEASE TERM 15 Years
RENEWAL OPTIONS 3 x 5 Year Options
RENT INCREASES 12% Every 5 Years
LEASE TYPE Double Net (NN) Lease
PERMITTED USE Tenant may use the premises for use of fitness club
CAM Tenant reimburses. Declarant will only bill the CAM
amount per LA Fitness lease - Landlord will make no
additional CAM payments as long as LA Fitness lease
remains in place
INSURANCE Tenant reimburses
REAL ESTATE TAXES Tenant reimburses
REPAIRS & MAINTENANCE Tenant will at its sole cost and expense maintain the
interior, non-structural and non-capital portion of the
building in good and tenantable conditions and make
all needed repairs thereto
LANDLORD OBLIGATIONS Landlord is responsible for roof structure (including
membrane) and building structure, and capital repairs
or improvements to the premises and common areaRENT ROLL 19
SIZE ANNUAL RENT LEASE TERM
TENANT SQUARE % OF ANNUAL RENT INCREASE RENTAL EST. LEASE EST. LEASE
OPTIONS
NAME FOOTAGE TOTAL BASE RENT PER SF DATES INCREASE BEGIN END
LA Fitness 37,000 SF 100% $1,073,000 $29.00 Every 5 Years 12% 05/01/2018 07/31/2033 3 x 5 YearsCONFIDENTIALITY AGREEMENT 20 The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Sands Investment Group and should not be made available to any other person or entity without the written consent of Sands Investment Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.
LA Fitness | 8400 Balboa Blvd | Northridge, CA 91329
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Representative Image
EXCLUSIVELY MARKETED BY:
ADAM SCHERR
2701 Ocean Park Blvd, Suite 140 Lic. # 01925644
Santa Monica, CA 90405
844.4.SIG.NNN
www.SIGnnn.com
310.853.1266 | DIRECT
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