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Fitness Center

24 Hour Fitness

22331 El Paseo, Rancho Santa Margarita, CA 92688

Listing Price: $10,730,838

Cap Rate
5.25%
Tenant Name
24 Hour Fitness
Years Remaining On Lease
3.6
Gross SF
22,000
Guarantor
Corporate Guarantee
Rentable SF
22,000
Price/Gross SF
$487.77
Lease Type
Absolute Net
Rent Per Square Feet
$25.61

Investment Overview

Marcus & Millichap is pleased to present a 24 Hour Fitness offering located in Rancho Santa Margarita, California. The
subject property consists of 22,000 square feet situated on a 1.72-acre parcel in the master planned community of Rancho Santa
Margarita. This location in RSM is home to a 1.6 Million square feet of retail in a one mile radius with only 2.7% of vacancy. Adjacent
to the property are 4 institutional quality retail properties which include Plaza El Antonio, Plaza El Paseo, RSM Towne Centre,
and Santa Margarita Marketplace, none of which offers a fully outfitted fitness facility.
Rancho Santa Margarita is a retailers bulls eye where the demographic profile of the residents is some of the best in Orange
County. The average and median household incomes within a 3-mile radius are $162,011 and $118,438 respectively with average
home prices of $838,000. The average home ownership is 77% compared to the US average of 65%, and the post-secondary
degree holder average is 70%, significantly higher than the US average of 25%. This area will continue to flourish as urban flight
advances with more migration to suburbs and master planned communities like RSM.
24 Hour Fitness today is financially stronger than ever since discharging 1.2B in debt through a recent chapter 11 bankruptcy
filing. This has allowed them to shed underperforming clubs and become financially profitable and stable. The investment today
offers a secure income stream from a financially stronger tenant in a superb retail location. The investment is corporate guaranteed
net lease, offering above market rental increases of 10%, 15.59% and 15.59% respectively in the option rent starting in 2025.
This offering today provides an excellent hedge against inflation in one of the best master-planned communities in Southern
California.

Investment Highlights

  • NNN Investment, Limited Landlord Responsibilities
  • 1.6M SF of Retail in 1 Sq. Mile
  • 10%, 15.59% and 15.59% Rent Increases during 3 (5-year) Options
  • Surrounded by Institutional-quality Retail, with no Fully Outfitted Fitness Facility

Exclusively Listed By

Listing Price: $10,730,838

Cap Rate
5.25%
Tenant Name
24 Hour Fitness
Years Remaining On Lease
3.6
Gross SF
22,000
Guarantor
Corporate Guarantee
Rentable SF
22,000
Price/Gross SF
$487.77
Lease Type
Absolute Net
Rent Per Square Feet
$25.61

Investment Highlights

  • NNN Investment, Limited Landlord Responsibilities
  • 1.6M SF of Retail in 1 Sq. Mile
  • 10%, 15.59% and 15.59% Rent Increases during 3 (5-year) Options
  • Surrounded by Institutional-quality Retail, with no Fully Outfitted Fitness Facility

Investment Overview

Marcus & Millichap is pleased to present a 24 Hour Fitness offering located in Rancho Santa Margarita, California. The
subject property consists of 22,000 square feet situated on a 1.72-acre parcel in the master planned community of Rancho Santa
Margarita. This location in RSM is home to a 1.6 Million square feet of retail in a one mile radius with only 2.7% of vacancy. Adjacent
to the property are 4 institutional quality retail properties which include Plaza El Antonio, Plaza El Paseo, RSM Towne Centre,
and Santa Margarita Marketplace, none of which offers a fully outfitted fitness facility.
Rancho Santa Margarita is a retailers bulls eye where the demographic profile of the residents is some of the best in Orange
County. The average and median household incomes within a 3-mile radius are $162,011 and $118,438 respectively with average
home prices of $838,000. The average home ownership is 77% compared to the US average of 65%, and the post-secondary
degree holder average is 70%, significantly higher than the US average of 25%. This area will continue to flourish as urban flight
advances with more migration to suburbs and master planned communities like RSM.
24 Hour Fitness today is financially stronger than ever since discharging 1.2B in debt through a recent chapter 11 bankruptcy
filing. This has allowed them to shed underperforming clubs and become financially profitable and stable. The investment today
offers a secure income stream from a financially stronger tenant in a superb retail location. The investment is corporate guaranteed
net lease, offering above market rental increases of 10%, 15.59% and 15.59% respectively in the option rent starting in 2025.
This offering today provides an excellent hedge against inflation in one of the best master-planned communities in Southern
California.

Exclusively Listed By

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