La fitness - EXP Realty Advisors
Transcript of La fitness - EXP Realty Advisors
EXP DALLAS
214.522.7200
JOE CAPUTO
BOB MOORHEAD
property. Brand new 47,500+ SF building on 1.63+ acres.
lease structure. Corporate, 15 year, net lease, with 10% or CPI increases every 5-years whichever is lower. Occupancy is scheduled for December 2013 and
Rent Commencement May 2014.
location. The subject property is located at the intersection of University Avenue (21,954 Cars / Day) and Markham Street (24,797 Cars / Day). The site is across
from Midtowne Little Rock (136,865 SF), a newly constructed, open-air lifestyle center. Tenants in Midtowne Little Rock include The Container Store, Pottery
Barn, Williams-Sonoma, Ann Taylor LOFT, Lewis & Clark, Pei Wei Asian Diner, and Starbucks. Also across from Park Plaza which boasts 546,000 square feet of
retail space, and houses Abercrombie & Fitch, Aeropostale, ALDO, American Eagle Outfitters, Ann Taylor, Banana Republic, Bath & Body Works, Coldwater
Creek, Crabtree & Evelyn, Dillard’s, Eddie Bauer, Gap, Gap Maternity, GapKids/Baby Gap, Gymboree, Lane Bryant, The Limited, Limited Too, Talbots, Talbots
Petites, Talbots Woman, Victoria’s Secret, and Zales.
EXCLUSIVE OFFERING | $12,215,000 / 7.00% cap
La fitness
University avenue & markham street, little rock, ar
Rep Photo
St. Vincent
Health Center
(420 Beds)
PAGE 3: INVESTMENT OVERVIEW
PAGE 1: COVER
PAGE 2: TABLE OF CONTENTS
Table of contents La fitness
University avenue & markham street, little rock, ar
PAGE 16-17: LOCATION MAPS
PAGE 18: DEMOGRAPHICS
PAGE 4-5: SITE PLAN
PAGE 9-14: AERIAL PHOTOS
PAGE 15: LOCATION OVERVIEW
PAGE 6: ELEVATIONS
PAGE 7-8: FLOOR PLAN
EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the
property located at University Avenue & Markham Street, Little Rock, AR by the owner of
the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is”
condition and Seller and Agent make no representations or warranties as to the accuracy of
the information contained in this Offering Memorandum. The enclosed materials include
highly confidential information and are being furnished solely for the purpose of review by
prospective purchasers of the interest described herein. The enclosed materials are being
provided solely to facilitate the prospective investor’s own due diligence for which it shall be
fully and solely responsible. The material contained herein is based on information and
sources deemed to be reliable, but no representation or warranty, express or implied, is
being made by Agent or Seller or any of their respective representatives, affiliates, officers,
employees, shareholders, partners and directors, as to the accuracy or completeness of the
information contained herein. Summaries contained herein of any legal or other documents
are not intended to be comprehensive statements of the terms of such documents, but
rather only outlines of some of the principal provisions contained therein. Neither the Agent
nor the Seller shall have any liability whatsoever for the accuracy or completeness of the
information contained herein or any other written or oral communication or information
transmitted or made available or any action taken or decision made by the recipient with
respect to the Property. Interested parties are to make their own investigations, projections
and conclusions without reliance upon the material contained herein. Seller reserves the
right, at its sole and absolute discretion, to withdraw the Property from being marketed for
sale at any time and for any reason. Seller and Agent each expressly reserves the right, at
their sole and absolute discretion, to reject any and all expressions of interest or offers
regarding the Property and/or to terminate discussions with any entity at any time, with or
without notice. This offering is made subject to omissions, correction of errors, change of
price or other terms, prior sale or withdrawal from the market without notice. Agent is not
authorized to make any representations or agreements on behalf of Seller. Seller shall
have no legal commitment or obligation to any interested party reviewing the enclosed
materials, performing additional investigation and/or making an offer to purchase the
Property unless and until a binding written agreement for the purchase of the Property has
been fully executed, delivered, and approved by Seller and any conditions to Seller’s
obligations hereunder have been satisfied or waived. By taking possession of and
reviewing the information contained herein, the recipient agrees that (a) the enclosed
materials and their contents are of a highly confidential nature and will be held and treated
in the strictest confidence and shall be returned to Agent or Seller promptly upon request;
and (b) the recipient shall not contact employees or tenants of the Property directly or
indirectly regarding any aspect of the enclosed materials or the Property without the prior
written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be
copied or otherwise reproduced without the prior written authorization of Seller and Agent.
DisclaimER
Listed in association with ARKANSAS broker of record: Flake & kelley commercial
LA FITNESS | www.lafitness.com
LA Fitness is a privately owned American health club chain with over 500 clubs across 25 US states and Canada making it the largest gym chain in the US. The
company was formed in 1984 and is based in Irvine, California. In 1995, LA Fitness designed and built a new multipurpose sports and fitness club that became the
company’s signature model at the time. This prototypical design starts with the strength and cardio equipment, free weights and group exercise room that are
found in most fitness centers and adds a swimming pool and court sports (basketball and racquetball in most locations) to offer LA Fitness members a wider
variety of workout options.
With a successful prototype in place, LA Fitness then expanded its in-house development efforts, and new club construction now accounts for the vast majority of
the clubs opened every year. In 1998, with 12 proven prototype clubs in Southern California and Arizona, the company rapidly increased the rate of new club
development and began rolling out its concept into several new geographic regions across the U.S., including the Sun Belt, the Pacific Northwest, the Mid-Atlantic
states, the Northeast, and the upper Midwest. The rate of expansion was rapid, with over 180 new clubs added from 2006 to 2009. In 2000, the company acquired
the then largest health club chain in Atlanta and eventually replaced its 25 units with 14 larger prototype clubs. The company continued to build clubs in the Atlanta
area and currently has 26 clubs in Georgia. In 2007, the company expanded outside of the United States by way of an acquisition of six fitness clubs, in Toronto,
Canada. Also of notable size, in 2010 the company acquired 10 locations in Phoenix from Pure Fitness Arizona. On July 2, 2012, the company completed the
acquisition of all 33 Lifestyle Family Fitness Clubs in Florida. LA Fitness remains a privately owned company, with major ownership interests held by private equity
firms Seidler Equity Partners, CIVC Partners and Madison Dearborn Partners.
PRICE: $12,215,000
CAP RATE: 7.00%
NET OPERATING INCOME: $855,000
BUILDING AREA: 47,500+ Square Feet
LAND AREA: 1.63+ Acres
YEAR BUILT: 2013 (Under Construction)
LANDLORD RESPONSIBILITY: Includes Roof & Structure
OWNERSHIP: Fee Simple Interest
OCCUPANCY: 100% (November 2013)
Tenant overview
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Investment overview La fitness
University avenue & markham street, little rock, ar
Projected Lease Expiration: May 2029
Projected Rent Commencement: May 2014
Initial Lease Term: 15-Years, Plus 3, 5-Year Options to Renew
Rent Increases: Every 5-Years, CPI or 10% Whichever is Less
Year 1-5 Annual Rent (Current): $855,000
Lease Type: Double Net
Year 16-20 Annual Rent (Option 1): $1,138,805
Year 21-25 Annual Rent (Option 2): $1,251,805
Year 26-30 Annual Rent (Option 3): $1,376,986
Year 6-10 Annual Rent: $940,500
Year 11-15 Annual Rent: $1,034,550
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Aerial photo La fitness
University avenue & markham street, little rock, ar
Doctor’s Hospital
St. Vincent
Health Center
(420 Beds)
Park Avenue Lofts
(258 Units)
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Aerial photo La fitness
University avenue & markham street, little rock, ar
St. Vincent
Health Center
(420 Beds)
Park Avenue Lofts
(258 Units)
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Aerial photo La fitness
University avenue & markham street, little rock, ar
Doctor’s Hospital
St. Vincent
Health Center
(420 Beds)
Park Avenue Lofts
(258 Units)
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Aerial photo La fitness
University avenue & markham street, little rock, ar
Park Avenue Lofts
(258 Units)
Doctor’s Hospital
Catholic High School for Boys
Interstate 630 (115,000 Cars / Day)
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Aerial photo La fitness
University avenue & markham street, little rock, ar
Doctor’s Hospital
St. Vincent Health Center
(420 Beds)
Park Avenue Lofts
(258 Units)
Catholic High School for Boys
Forest Heights Middle School
IMMEDIATE TRADE AREA
The subject property is located at the intersection of University Avenue (21,954
Cars / Day) and Markham Street (24,797 Cars / Day). Just east on Markham,
War Memorial Park includes War Memorial Stadium (54,120 Seats), the Little
Rock Zoo and many other amenities. Surrounding the Midtowne area, there
are 3 major neighborhoods: Hillcrest, immediately east of University Avenue;
the Heights, to its north; and Briarwood, east of and contiguous to the site.
Within 1-mile, residents have fewer children, have smaller households, are
more affluent, are more educated, and are more likely to be employed in
executive, managerial or professional specialty occupations. Estimated
disposable income for Little Rock and North Little Rock is $18.4 billion.
The site is across from Midtowne Little Rock (136,865 SF), a newly
constructed, open-air lifestyle center. Tenants in Midtowne Little Rock include
The Container Store, Pottery Barn, Williams-Sonoma, Ann Taylor LOFT, Lewis
& Clark, Pei Wei Asian Diner, and Starbucks. The site is also next to Park
Plaza, a traditional enclosed mall which underwent a recent multi-million dollar
renovation. Park Plaza boasts 546,000 square feet of retail space, and houses
Abercrombie & Fitch, Aeropostale, ALDO, American Eagle Outfitters, Ann
Taylor, Banana Republic, Bath & Body Works, Coldwater Creek, Crabtree &
Evelyn, Dillard’s, Eddie Bauer, Gap, Gap Maternity, GapKids/Baby Gap,
Gymboree, XXI Lane Bryant, The Limited, Limited Too, Talbots, Talbots
Petites, Talbots Woman, Victoria’s Secret, and Zales. The mall’s specialty
stores enjoy sales of $470 per square foot, with total annual sales in the mid
eighty-million-dollar range. The site is also less than 2-miles from the
University of Arkansas-Little Rock (UALR) which has the 3rd largest student
population in the state.
MIDTOWN LITTLE ROCK
Midtown, where proximity is everything, has a population density of 3,074
people per square mile. Though northern and southern boundaries of the
neighborhood are less distinct, heavily traveled Mississippi and University
avenues generally are considered as western and eastern boundaries. H
Street and Evergreen drive are among the busier streets carrying traffic
between the two avenues. .
The Midtown district is home to one of the largest malls in Arkansas, Park
Plaza Mall, with a total GLA of 560,000 SF. In the Northwest corner of
University Avenue and Markham Street sits the Midtown shopping center
consisting of 150,000 SF of retail mix. Tenants at Midtown include the Pottery
Barn, Williams Sonoma, The Container Store, Cantina Laredo and Starbucks to
name a few.
What was once considered dead space across from Park Plaza Mall has now
been marked with a new beginning for the business district in this area, the
Park Avenue Development, a mixed-use development in the center of Little
Rock. This high-quality, 540,000 SF urban oasis provides a variety of
shopping experiences, eateries and luxury housing options. The open-air
lifestyle shopping center incorporated a 138,000 SF contemporary Target, a
number of high end retailers, restaurants, apartments and office space, all with
a main street feel. All three shopping centers are located at the crossroads of
University Avenue and Markham Street, and within the heart of Little Rock’s
midtown corridor near War Memorial Park & Stadium, University of Arkansas
for Medical Sciences campus, St. Vincent Health, the University of Arkansas at
Little Rock and the Little Rock Zoo.
Originally developed in the late 1940’s, Midtown was the suburb for many
members of the Greatest Generation who chose to build low-standing, ranch-
style homes in the hills west of Hillcrest. Though it lacks the community feel of
the Hillcrest area, there is much to offer in the Midtown area personally and professionally.
LITTLE ROCK, AR
Little Rock is the capital of Arkansas and a metropolitan statistical area with a
population of 666,401. The 11-county Metro Little Rock Alliance (MLRA)
population, representing a 50-mile radius surrounding Little Rock, has a
population of 967,789. Residents within the MLRA live within an hour’s drive of
Little Rock, where major industry sectors include the medical, service,
government and advanced manufacturing industries. Little Rock is located in
the center of the country and in the second fastest-growing region of the United
States, with 40% of the nation’s population and buying power within a 550mile
radius. Little Rock is where ‘America Comes Together’ – located at the
crossroad of Interstate 30 and the most heavily traveled Interstate in the nation,
Interstate 40. Competitive wages and Arkansas’ right-to-work environment
provide an excellent workforce environment for businesses. Twenty-eight
Fortune 500 companies operate within the Little Rock Metropolitan Statistical
Area. Little Rock was considered the nation's fourth strongest economy
(Business Week, October 22, 2009) during the most challenging economic
times. Further, at a 6.2 percent September unemployment rate, Little Rock
was the lowest in the Fed's Eighth District.
Centrally located, Little Rock is where the Southeast meets the Southwest, and
the delta becomes the mountains. Distances by highway to major nearby
cities, include: Dallas–307 Miles; Houston–443 miles; Oklahoma City–348
miles; Tulsa–288 miles; Kansas City– 405 miles; St. Louis 360 miles; Louisville
– 522 miles; Nashville – 360 miles; Atlanta – 523 miles; Memphis – 139 miles;
and New Orleans – 437 miles.
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Location overview La fitness
University avenue & markham street, little rock, ar
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Location map La fitness
University avenue & markham street, little rock, ar
DEMOGRAPHIC SNAPSHOT
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Demographics La fitness
University avenue & markham street, little rock, ar
DOWNTOWN LITTLE ROCK, AR
PARK PLAZA MALL
Radius 1 Mile 3 Mile 5 Mile
Population:
2016 Projection 8,584 74,772 153,388
2011 Estimate 8,497 74,212 150,742
2010 Census 8,525 74,766 150,775
Growth 2011-2016 1.00% 0.80% 1.80%
Growth 2010-2011 -0.30% -0.70% 0.00%
Households:
2016 Projection 4,212 33,220 67,766
2011 Estimate 4,182 32,947 66,520
2010 Census 4,193 33,204 66,564
Growth 2011-2016 0.70% 0.80% 1.90%
Growth 2010-2011 -0.30% -0.80% -0.10%
Owner Occupied 2,323 17,458 34,239
Renter Occupied 1,859 15,489 32,281
2011 Avg Household Income $60,627 $62,234 $60,833
2011 Med Household Income $43,489 $41,857 $40,884
2011 Per Capita Income $30,672 $28,895 $27,701
2011 Households by Household Inc:
Income Less than $15,000 550 5,100 11,956
Income $15,000 - $24,999 554 4,440 8,803
Income $25,000 - $34,999 534 4,089 7,818
Income $35,000 - $49,999 702 5,256 9,899
Income $50,000 - $74,999 765 5,808 11,261
Income $75,000 - $99,999 393 2,885 5,984
Income $100,000 - $149,999 458 3,019 6,241
Income $150,000 - $199,999 124 998 2,056
Income $200,000+ 104 1,352 2,500