Tenant: LA Fitness | Northridge, CA
Premises: 37,000 SF
Renewal Options: 3 x 5 Years
Lease Expiration: Est. 7/31/2033
Lease Type: NN
Rental Increases: 12% Every 5 Years
Sands Investment Group is pleased to present this long term net lease investment opportunity. The LA Fitness is located at 8400 Balboa Blvd in Northridge, California, in the heart of the San Fernando Valley.
NEWLY – CONSTRUCTED OUTPARCEL ANCHORED BY LEADING HIGH TECH COMPANIES
- Long-term credit net lease – Brand new 15 year lease with minimal Landlord responsibilities
STRONG HEDGE AGAINST INFLATION
- Market leading increases at 12% every 5 years during the initial term and throughout the options
SIGNIFICANT NOI GROWTH
- With embedded rent increases throughout the lease term, the NOI is projected to grow more than $285,000 (21%) over the life of the lease
INTERNET RESISTANT TENANT
- Health club industry revenue has doubled in the last 10 years
DELIVERED FREE & CLEAR
- The property will be delivered with no debt, allowing seller to accommodate 1031 trade buyers in need of a quicker closing to meet tight exchange timeframes
RARE GENERATIONAL OPPORTUNITY
- The property is anchored by some of the top high-tech companies in the country including: Harman (subsidiary of Samsung) and other household name high-tech companies
- Adjacent to existing creative office/industrial campus that will include over 3,500 daytime employees on site once complete, as well as a full compliment of restaurants
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 in the United States and Canada
- LA Fitness has the highest revenues ($1.9212 billion) of any health club in America and has a long term track record of international expansion
AFFLUENT DENSE LOS ANGELES MSA DEMOGRAPHICS
- 3-Mile radius: 292,586 people with an average HH income of $74,490
- 5-Mile radius: 709,337 people with an average HH income of $81,845
- 10-Mile radius: 1,563,629 people with an average HH income of $92,985
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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.
