fitness connection - loopnet...may 09, 2018 demographic snapshot comparison report for fitness, 5390...

Fitness Connection

The Silver Group1050 Northgate Drive #500San Rafael, CA 94903 www.thesilver-group.com

5390 Longley Lane, Reno, Nevada 89511Single Tenant Solutions

Barry SilverEmail: [email protected]: (415) 461 - 0600

Greg Cunha Email: [email protected]: (415) 461 - 0600

• EXPERIENCEDMULTI-LOCATIONOPERATOR• WELLMAINTAINEDREALESTATE• MINIMALLANDLORDOBLIGATIONS• SCHEDULEDRENTALINCREASES

• NEARMEADOWOODMALL• INCOMETAX-FREESTATE

SINGLE TENANTINVESTMENT OFFERING

Property Photo

Fitness Connection

The Silver Group • Phone: (415) 461 - 0600

Single Tenant Solutions

5390 Longley Lane, Reno, Nevada 89511

Investment Summary -

The information contained herein has been received from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness and make no representation thereto. The above is subject to errors, omissions, or withdrawal from the market. Interested investors are advised to conduct their own due diligence.

AnnualRent:

OptionRent:Land Area: ± 3.71 Acres (± 161,608 SF)Building Area: ± 33,067 SF

Population: 149,748 5 milesAverage HH Income: $71,687 5 miles

PurchasePrice: $8,900,000InitialCapRate: 7.0%

RentStartDate: October 17, 2005

The subject property is a single tenant Fitness Connection health club located in Reno, Nevada. The Property consists of a freestanding ± 33,067 sf building on ± 3.7 acres of land at 5390 Longley Road and is part of the LongleyTownCentre(Starbucks,

Jimmy John’s, Spicy Pickle, Hinoki Sushi, La Posada restaurant,customcabinets, Elwood staffing& bicycle shop). The Property was developed for Gold’s Gym who was later acquired by Titan Fitness Nevada LLC dba Fitness Connection. Fitness Connection serves southern Reno and is in close proximity to the Meadowood Mall, SmithridgePlaza(TraderJoe’s,SteinMart,CVSPHarmacy&BigLots),SmithridgeCenter (Toys R Us, Pep Boys,Men’sWearhouse, Chuck E Cheeses,Chili’s),DelMontePlaza(WholeFoodsMarket,Sally’sBeauty,RaisingCane’s), The Commons (Total Wine, Petsmart, DSW Warehouse,GuitarCenter,David’sBridal,MattressFirm,ScotTrade),SierraTownCenter(Target,Fallas,HomeDepot),24HourFitnessandNVEnergycampus along with a couple million square feet of industrial buildings. The Company also operates a Fitness Connection in Sparks, NV.

LeaseTerms:• Currently in 1st, 5 year renewal option• NN Lease Landlord responsible for structure & roof• Rent increases of 4% every 2 years• One x 5 year renewal option• Security Deposit: $40,357

$599,015 Years1-2$622,976 Years3-4 (+4%)$647,895 Year5 (+4%)

$647,895 Year6$673,810 Years7-8 (+4%)

$700,763 Years9-10 (+4%)

Fitness Connection




Site Plan -

Fitness Connection




Street Map -

Fitness Connection




Regional Map -

Fitness Connection




ABOUTTHEAREA

Reno is a the third largest city in Nevada. Located in Northern Nevada, it is approximately 22 miles from Lake Tahoe. Known as “The Biggest Little City in the World”, Reno is famous for its casinos and as the birthplace of Caesars Entertainment Corporation. It is the county seat of Washoe County. The city sits in a high desert at the foot of the Sierra Nevada and its downtown area (along with Sparks) occupies a valley informally known as the Truckee Meadows. Reno is part of the Reno–Sparks metropolitan area, which consists of all of both Washoe and Storey counties, and is the second largest metropolitan area in Nevada.

Before the late 1950s, Reno was the gambling capital of the United States, but in the last twenty years older casinos were torn down or were converted into condos. Several local large hotel casinos have shown significant growth and have moved gaming further away from the Virginia Street core. These larger hotel casinos are the Atlantis, the Peppermill and the Grand Sierra Resort. In an effort to bring more tourism to the area, Reno holds several events throughout the year, most of which have been extremely successful. They include Hot August Nights (a classic car convention), Street Vibrations (a motorcycle fan gathering and rally), The Great Reno Balloon Race, a Cinco de Mayo celebration, and the Reno Air Races.

Several large commercial developments were constructed during the mid-2000s boom, such as The Summit in 2007 and Legends at Sparks Marina in 2008. Reno is the location of the corporate headquarters for numerous companies, including Braeburn Capital, Hamilton, EE Technologies, and Port of Subs. International Game Technology, Bally Technologies and GameTech have development and manufacturing presence in Reno.

Titan Fitness Nevada, LLC is part of Titan Fitness, LLC, parent company of Fitness Connection. Titan Fitness LLC owns and operates 42 Fitness

Connection health clubs in in three states - North Carolina, Texas and Nevada. Fitness Connection offers members a full amenity experience at “category killer” pricing. Each health club has facilities for the entire family with individual or class workouts, basketball, raquetball, swimming et.Fitness Connection is backed by a $500 million private equity fund allowing the capital for expansion both organically and by acquisition. Fitness Connection has become a recognized leader in the fitness industry.In 2009, Titan Fitness Nevada, LLC acquired two Golds Gym fitness centers in Nevada, including this location.

ABOUTTHETENANTTitan Fitness Nevada, LLC

Private Equity backedEntity formed to acquire 2 Reno area clubs

Parent operates 42 fitness centers in 3 states

Add’l Info -

Fitness Connection




Demographics - Site SelectionMay 09, 2018

Demographic Snapshot Comparison Report for Fitness, 5390 Longley Ln, Reno, NV, 89511:

1 mile(s) 3 mile(s) 5 mile(s)

Population: 2017B Total Population 5,991 66,134 149,748 Female Population 52.93% 50.51% 49.45% Male Population 47.07% 49.49% 50.55%Population Density 1,904 2,336 1,904Population Median Age 36.5 36.0 39.4Employed Civilian Population 16+ 3,112 31,617 71,673 % White Collar 56.4% 57.9% 58.9% % Blue Collar 43.6% 42.1% 41.1%Total Q4 2017 Employees 9,632 66,998 137,058Total Q4 2017 Establishments* 746 4,577 10,260 Population Growth 2000-2010 -4.80% 11.98% 13.13% Population Growth 2017B-2022 -1.22% 3.83% 5.21%

Income: 2017BAverage Household Income $55,061 $67,064 $71,687Median Household Income $42,119 $45,008 $44,344Per Capita Income $22,180 $26,979 $30,288 Avg Income Growth 2000-2010 15.70% 18.00% 20.87% Avg Income Growth 2017B-2022 18.87% 20.90% 20.53%

Households: 2017BHouseholds 2,414 26,717 63,560Average Household Size 2.31 2.42 2.29 Hhld Growth 2000-2010 -8.00% 8.61% 12.64% Hhld Growth 2017B-2022 -0.52% 5.55% 6.75%

Housing Units: 2017BOccupied Units 2,414 26,717 63,560 % Occupied Units 93.12% 91.32% 90.71% % Vacant Housing Units 6.88% 8.68% 9.29% Owner Occ Housing Growth 2000-2010 -7.33% 11.25% 19.06% Owner Occ Housing Growth 2000-2022 -6.99% 20.44% 34.05% Owner Occ Housing Growth 2017B-2022 1.40% 8.50% 10.20%Occ Housing Growth 2000-2010 -8.00% 8.61% 12.64%Occ Housing Growth 2010-2022 3.55% 12.27% 15.02%Occ Housing Growth 2017B-2022 -0.52% 5.55% 6.75%

Race and Ethnicity: 2017B% American Indian or Alaska Native Population 1.68% 1.40% 1.57%% Asian Population 6.79% 6.41% 6.15%

% Black Population 2.42% 2.60% 2.56%

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fitness connection - loopnet...may 09, 2018 demographic snapshot comparison report for fitness, 5390...

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