• Pride-Of-Ownership Luxury Health Club in Affluent San Diego
• Rare Corporate Absolute NNN Lease - Dominant Upscale Brand
• Excellent Demographics and Traffic Counts
• Annual Increases of 2.43%
SAN DIEGO, CA
SAN DIEGO, CA
SINGLE-TENANT LUXURY HEALTH CLUB
FIT Athletic provides large-scale, multi-level facilities in prime, upscale areas with expanded personalized services. With the existing three iconic San Diego locations being expanded to include two new trophy locations this summer in Mission Beach and Little Italy, FIT Athletic is the most luxury health club in the country.
LONG-TERM, CORPORATE ABSOLUTE NNN LEASE
This rare Central San Diego single-tenant luxury club has an absolute NNN lease with no landlord responsibilities. FIT Athletic signed a new 15-year lease in 2014, showing their continued interest in the growing area. The 2.43% annual increases for the remaining 9.5+ years create strong NOI growth year after year and provide a hedge against inflation.
INDOOR/OUTDOOR LOCATION
This 2.5 acre property features an outdoor olympic size swimming pool, three tennis courts, and both indoor and outdoor training sessions. Indoor, FIT offers the most robust group training program in the region for cycling, yoga, aerobics, pilates, cross-training, dance/barre, cardio, strength, and full body exercises.
18.5%POPULATION GROWTHSince 2000
$128,697HH INCOMEWithin 1 Mile
226,800+POPULATION Within 5 Miles
32%+MEMBERSHIP GROWTHOver Last Three Years
2.43%ANNUAL RENT INCREASES
275,300+VEHICLES PER DAYOn Nearby Roads
fitathletic.com
COMMUNITYPARTNERSHIPS
FIT Athletic has entered into several medical-related partnerships, such as the one with Scripps, the leading health care system in the San Diego area. The FIT Functional Wellness Clinic will provide reimbursed health screening and medically-supervised physical therapy, among other services.
OUTSTANDING DEMOGRAPHICS
The regional and local demographics and economic trends of San Diego are strong and highly-conducive to FIT’s continuing success. The iconic locations are destinations for the 3.3 million residents in the San Diego metro area, especially in the key 18- to 44-year-old demographic.
The NNN Fitness group of Marcus & Millichap is pleased to present this rare opportunity to purchase a fee-simple FIT Athletic located in the high growth market Carmel Mountain Ranch of San Diego, CA. The offering is a 20,800-square-foot state-of-the-art luxury facility positioned on 2.37 acres just off the I-15 freeway and Carmel Mountain Road with over 275,300 combined traffic counts. Nestled beneath the breathtaking San Diego mountains, this location offers not only the superior exercise equipment and amenities FIT is known for, but outdoor and family-oriented fitness options as well. Carmel Mountain Ranch members enjoy three pristine outdoor tennis courts with lighting, an outdoor turf zone, an Olympic-sized swimming pool open for lap swimming, aquatics classes, and swim lessons for kids. The regional and local demographics and economic trends of the
3.3 million residents of San Diego are strong and highly conducive to
FIT’s continuing success. The iconic locations are located in densely
populated, wealthy neighborhoods that support family-oriented health
clubs, especially in the key 18- to 44-year-old demographic. The Carmel
Mountain Ranch location is in close proximity to the premier power
center on the I-15 corridor features national and regional tenants such
as Dick’s Sporting Goods, Nordstrom Rack, Saks Fifth Avenue OFF
5TH, Barnes and Noble, Marshalls, Michaels, Ross, Sprouts, Angelika
Film Center, and a host of other restaurants and specialty retailers.
INVESTMENT OVERVIEW
Executive Summary | FIT Athletic | 12171 World Trade Dr, San Diego, CA Executive Summary | FIT Athletic | 12171 World Trade Dr, San Diego, CA
AFFORDABLELUXURY
FIT Athletic represents the leading independent high-amenity, high-value health club operator and luxury lifestyle brand in Southern California. Their affordable monthly pricing of $79-$129 per month is unique in the San Diego market.
Executive Summary | FIT Athletic | 12171 World Trade Dr, San Diego, CA
BASE RENT MONTHLY RENT ANNUAL RENT CAP RATE
01/15/2020 $55,437.58 $665,250.96 6.00%
01/15/2021 $56,784.71 $681,416.52 6.15%
01/15/2022 $58,164.58 $697,974.96 6.30%
01/15/2023 $59,577.98 $714,935.76 6.45%
01/15/2024 $61,025.73 $732,308.76 6.60%
01/15/2025 $62,508.65 $750,103.80 6.77%
01/15/2026 $64,027.61 $768,331.32 6.93%
01/15/2027 $65,583.48 $787,001.76 7.10%
01/15/2028 $67,177.16 $806,125.92 7.27%
A N N U A L I Z E D O P E R A T I N G D A T A
L E A S E S U M M A R Y
Lease Term 9.5+ Years Left
Commencement Date January 15, 2014
Expiration Date January 15, 2029
Lease Type Absolute NNN
Increases 2.43% Annually
Renewal Options Two 5-Year Options
OFFERING SUMMARY
Executive Summary | FIT Athletic | 12171 World Trade Dr, San Diego, CA
$11,087,600Offering Price
Outdoor AmenitiesSwimming Pool* and Tennis Courts
6.62%Average Cap Rate
$665,250.96Net Operating Income
2.37 Acres
20,800 SFGross Leasable Area (GLA)
1996 / 2015Year Built / Remodeled
NOI $665,250.96
AVG CAP RATE 6.62%
*Pool area not included in the sale - operates on long-term lease with the City by Operator Fit Athletic
SITE PLANProperty Description | FIT Athletic | 12171 World Trade Dr, San Diego, CA Property Description | FIT Athletic | 12171 World Trade Dr, San Diego, CA
CARMEL MOUNTAIN RANCH
SUBJECT PROPERTY
NAP
Property Description | FIT Athletic | 12171 World Trade Dr, San Diego, CA
Female 47.5%
Male 52.5%
13-17 18-24 25-34 35-44 45-54 55-64 65+
6.3% 26.8%
6.2% 26.8%
8.9%
13.6% 4.0%
2.5% 1.0%
0.9%
0.7%
0.9%
65%13%22%18 YRS
Business ProfessionalsService IndustryStudents (Undergrad & Grad)Youngest Member Of FamilyOldest Member Of Family
FIT MEMBER PROFILE
FIT is more than just a gym - it’s a lifestyle brand that encourages healthy
and inspired living. Offering an unparalleled, all-encompassing member
experience, FIT sets the bar when it comes to personal training, group fitness,
workout facilities, social events, and more. With an extraordinary country club-
like atmosphere, a culture that fosters and encourages complete wellness, and
all of the tools and training you need to see incredible results - there’s no wonder
FIT has been voted “Best Gym” by San Diego Downtown News year after year.
FIT Athletic has entered into several medical-related partnerships, such
as the one with Scripps, the leading health care system in the San Diego
area. The FIT Functional Wellness Clinic will provide reimbursed health
screening and medically-supervised physical therapy, among other
services. They have also been working with the Genavix HealthyCARE
Network® and Cigna Optum® to further implement preventive
Healthcare Risk Assessments, deploy dieticians within the FIT Fitness
Centers, implement diabetes prevention programming, and to subsidize
Senior Advantage and Medicare Supplement Fitness Memberships.
Tenant Summary | FIT Athletic | 12171 World Trade Dr, San Diego, CA
LEASE SUMMARY
Tenant Trade Name FIT Athletic
Lease Term 15 Years
Lease Type NNN
Roof & Structure Responsibility Tenant Responsible
Rent Commencement Date January 15, 2014
Lease Expiration Date January 15, 2029
Increases 2.43% Annually
Renewal Options Two 5-Year Options
TENANT SUMMARY
Tenant FIT
Ownership Private
Number of Locations 6
Headquarters San Diego, CA
Website fitathletic.com
TENANT SUMMARY
FIT ATHLETIC (“FIT”), FOUNDED IN 2008, REPRESENTS THE LEADING INDEPENDENT
HIGH-AMENITY, HIGH-VALUE HEALTH CLUB OPERATOR AND LUXURY LIFESTYLE BRAND IN
SOUTHERN CALIFORNIA.
72 YRS
Tenant Summary | FIT Athletic | 12171 World Trade Dr, San Diego, CA
Fitness and health clubs have grown to be a more than a $30-billion-a-year industry, with more than 36,000 clubs across the U.S. boasting more than 60 million members.
The current environment appears to offer a perfect storm for the fitness center sector as consumers become more health-conscious and the economy continues to improve.
Fitness concepts are also more internet-resistant than traditional retailers - you cannot work out online.
The fact that neighborhood centers provide goods and services that are not purchased online is very attractive to both private and institutional investors.
INTERNET RESISTANT TENANT
The fitness club sector is flexing its muscles.
FITNESS INDUSTRY BYTHE NUMBERS
30Bhealth and fitness
industry in the U.S.
36,000 clubs across
the U.S.
20% of American adults have a fitness club
membership
3 - 4% annual growth for the last ten
years
60Mmembers
ACROSS THE U.S.
*Estimates per IHRSA & club industry
Tenant Summary | FIT Athletic | 12171 World Trade Dr, San Diego, CA
MARKET OVERVIEW SAN DIEGO
Market Overview | FIT Athletic | 12171 World Trade Dr, San Diego, CA
San Diego County is
California’s second largest city
and the United States’ eighth largest,
San Diego boasts a citywide population
of nearly 1.3 million residents and more
than 3 million residents countywide. Within
its borders of 4,200 sq. miles, San Diego
County encompasses 18 incorporated cities and
numerous other charming neighborhoods and
communities, including downtown’s historic Gaslamp
Quarter, Little Italy, Coronado, La Jolla, Del Mar, Carlsbad,
Escondido, La Mesa, Hillcrest, Barrio Logan and Chula Vista
just to name a few.
San Diego is renowned for its idyllic climate, 70 miles of pristine
beaches and a dazzling array of world-class family attractions. Popular
attractions include the world-famous San Diego Zoo and San Diego Zoo
Safari Park, SeaWorld San Diego and LEGOLAND California. San Diego offers
an expansive variety of things to see and do, appealing to guests of all ages
from around the world.
San Diego’s arts and culture and culinary arts are booming. The hottest, new
culinary arts talents prepare award-winning meals throughout the region’s
6,400 eating establishments. Balboa Park, the largest urban cultural park
in the U.S., is home to 15 museums, numerous art galleries, beautiful
gardens, and the Tony Award-winning The Globe Theatres.
In San Diego’s East County, the terrain varies from gentle
foothills to mile-high mountains and the historic mining
town, Julian, down to the 600,000-acre Anza-Borrego
Desert State Park, offering nature-conscious visitors
endless opportunities to hike, camp, fish, observe
wildlife and much more. In San Diego’s North County, the
agricultural community produces quantities of flowers
and magnificent produce. Wine growers are also making
a mark by growing and harvesting quality grapes that
become excellent wines, which are served at some of
the most elegant restaurants and resorts in the region.
Along the west, 70 miles of Pacific Ocean coastline not
only supports year-round outdoor recreation, such
as surfing, boating, sailing and swimming, but also
important scientific research at the Scripps Institution
of Oceanography. To the south, it’s a whole different
country, Mexico, featuring its own cultural offerings in
various towns along the border and coastline, including
Tijuana, Rosarito and Ensenada.
San Diego County also features almost 100 different
golf courses and a variety of exciting participatory and
spectator sports, beachfront resorts and luxury spas,
gaming, a dynamic downtown district, annual special
events and unique holiday offerings, multicultural
festivals and celebrations, colorful neighborhoods and
communities, a rich military history and much more.
Market Overview| FIT Athletic | 12171 World Trade Dr, San Diego, CA
DEMOGRAPHICS SAN DIEGO
G E N D E R
49.7%
50.3%
$128,697Average Household Income
Within 1-Mile Radius
$497,003Median Housing Value
(118% Increase From 2000)
226,794To t a l P o p u l a t i o n
W i t h i n 5 - M i l e R a d i u s
80,807Total Households
Within 5-Mile Radius
Market Overview | FIT Athletic | 12171 World Trade Dr, San Diego, CA
POPULATION 1 Mile 3 Miles 5 Miles2024 Projection 18,185 99,938 234,760
2019 Estimate 17,212 96,111 226,794
2010 Census 13,760 85,768 208,292
Growth 2019-2024 5.65% 3.98% 3.51%
Growth 2010-2019 25.09% 12.06% 8.88%
HOUSEHOLDS 1 Mile 3 Miles 5 Miles2024 Projection 6,886 38,455 83,682
2019 Estimate 6,506 36,908 80,807
2010 Census 5,131 32,465 73,943
Growth 2019 - 2024 5.84% 4.19% 3.56%
Growth 2010 - 2019 26.80% 13.69% 9.28%
Owner Occupied 3,597 22,784 56,249
Renter Occupied 2,909 14,124 24,558
HOUSEHOLDS BY INCOME 1 Mile 3 Miles 5 Miles2019 Estimate
<$25,000 289 3,326 6,096
$25,000 - $50,000 575 4,673 8,704
$50,000 - $75,000 964 5,059 9,530
$75,000 - $100,000 954 5,008 10,036
$100,000 - $125,000 1,121 5,745 11,374
$125,000 - $150,000 559 3,280 7,133
$150,000 - $200,000 1,259 5,052 12,008
$200,000+ 787 4,764 15,928
2019 Avg Household Income $128,697 $120,343 $138,641
2019 Med Household Income $110,526 $101,686 $113,272
Market Overview| FIT Athletic | 12171 World Trade Dr, San Diego, CA
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SAN DIEGO, CA
MARK THIELSENIOR MANAGING DIRECTOR INVESTMENTS
SAN DIEGOTel: (858) 373-3206
[email protected]: CA 01469342
EXCLUSIVELY LISTED BY