montrose shopping center –gold’s gym / dollar general ......gold's gym international, inc....
TRANSCRIPT
Montrose Shopping Center – Gold’s Gym / Dollar General Offering Memorandum
$6,284,027 | Investment Details
❖ Located in the Heart of Montrose, Colorado
❖ Two Tenant Center – 100% Occupied
❖ Gold’s Gym to Sign a New 15 Year Lease Upon
COE
❖ Gold’s Has Occupied the Site For 10 Years and
Wishes to Extend Their Presence Thru 2032 by
Executing a New Lease, Showing Dedication to
the Region
❖ Gold’s Gym Has 2,901 Members at This Location
With Sales Exceeding $1,517,942 Annually
($523.24 Per Member)
❖ Site Was Remodeled in 2013
❖ NNN Leases – All CAM’s Pass Through to Tenants
❖ Strong Growth Area – Local Population Increased
by over 33% since 2000
❖ Traffic Count Exceeds 17,000 Vehicles Passing in
Front of Site Daily Actual Site Photo
TENANT OVERVIEW
Company Profile
Tenant Trade Name Gold’s Gym
Ownership Private - TRT Holdings is Parent Company
Site Operator Franchised 5 Unit Operator
Revenue $147 Million
Lease Guarantor Corporate
No. of Locations 700+
No. of Employees 30,000+
Headquarters Dallas, Texas
Website www.Goldsgym.com
Tenant Snapshot
Gold’s Gym stared moderately 52+ years ago when they opened their first
fitness center in Venice Beach, CA and began a tradition of passion and
dedication to physical fitness at more than 700 +/- locations across the
globe.
Located in 30 countries and 40 states, Gold’s Gym has assisted patrons in
achieving their personal physical fitness goals in strength and endurance.
Gold’s Gym’s mantra is “ Know Your Own Strength”.
Gold’s Gym is an American chain of international co-ed fitness centers. Each
location features an array of exercise equipment, group exercise classes and
personal trainers.
Gold’s Gym was purchased by Robert Rowling’s TRT Holdings in 2004 for
approximately $158(Mil). TRT also owns the Omni Hotel chain. TRT Holdings
net worth is approximately $6.7(Bil) as of May 2017.
700+Locations
$6.7 MillionParent Co Net Worth
Gold’s Gym Accelerates growth and Innovation in
Strong 2016: http://www.prnewswire.com/news-releases/golds-gym-
accelerates-growth-and-innovation-in-strong-2016-300377323.html
A b o u t t h e F r a n c h i s e e :
Utah Limited Liability Company based out of Sandy, Utah. Cascade Fitness was
formed for the ownership and operation of Gold's Gym locations in south eastern
Washington State. They currently own and operate Gold's Gym's in Kennewick,
WA, and 2 gyms in western Colorado. They have also developed and constructed
over 21 Gym's for other operators throughout the US. It is a joint venture of
Bingham Family Alaska LLC
TENANT OVERVIEW
Corporate Snap Shot
Gold's Gym International, Inc. operates a chain of fitness gyms in the United States and
internationally. It offers group exercise programs, including Zumba, yoga, group cycling,
mixed martial arts, muscle endurance training, and Pilates.
The company also provides services in the areas of strength training/cardio, diet and nutrition,
fitness related medical information, celebrity training, sports training, senior fitness, youth
fitness, pre- and post-natal, motivation, diabetes, obesity, sports psychology, and stretching
exercises.
In addition, it engages in franchising gyms. Gold's Gym International, Inc. was formerly known
as Gold's Gym Enterprises, Inc. The company was founded in 1965 and is based in Dallas,
Texas.
As of July 21, 2004, Gold's Gym International, Inc. operates as a subsidiary of TRT Holdings,
Inc.
Today, Gold’s Gym serves more than 3 million members through over 720 gyms in 38 states
and 26 countries around the world.
Franchise opportunities for gyms – estimated investment level ranges between $1.1-$3.9
million depending on size amenities and location. 30% of all franchisees own more than one
unit.
TENANT OVERVIEW
Tenant Snapshot
With 13,601 discount stores in more than 40
states, primarily in the south, eastern, Midwest,
and southwest US, this number 1 ranked retailer
thrives off of the crumbs of mega discounter
Walmart. They offer mostly basic household
products, food and discounted products. Most
products sell for less than $1. Ranked 164th in
Fortune 500, Standard & Poor’s BBB – rated, and
does approximately $20.369(Bil) in annual sales
with an average annual growth of 8.03 percent.
13,600+Locations “BBB“ Rated
Standard & Poor’s $20.369 BillionRevenue
TENANT OVERVIEW
13,600+Locations “BBB“ Rated
Standard & Poor’s $20.369 BillionRevenue
Dollar General Company
Profile
Tenant Trade
Name
Dollar General
Ownership NYSE:DG
Revenue $20.369 Billion
Lease
Guarantor
Corporate
No. of
Locations
13,600+
No. of
Employees
120,000+
Headquarters Goodlettsville, TN
Website www.Dollargeneral.com
FLOOR PLAN – GOLD’S GYM
LEASE ABSTRACTS
Lease Abstract
Lease Type NNN Fee Simple
Lease Term 10 Years
Lease Start (estimate) 10/30/2006
Lease Expiration (estimate) 3/31/2019
Renewal Options 3x5
Increases In option periods
Roof and Structure Tenant Responsible
Lease Abstract
Lease Type Modified NNN Fee Simple
Lease Term New 15 Year
Lease Start COE
Lease Expiration (estimate) COE + 15 Years
Renewal Options (estimate) 3x5
Increases 1.50% annually
Roof and Structure Tenant Responsible
Overview
Price (Combined) $6,284,027
Gross Leasable Area (Estimate)
(32,191 SF Gold’s & 9,903 SF DG)
42,094 SF Combined
Lot Size (Acres) 3.15
Year Built / Renovated 1974 / 1988 / 2013
Net Operating Income (Combined) $455,592
CAP Rate (Combined) 7.25%
THE OFFERING – GOLD’S GYM & Dollar General Center
Time Periods*
Rental
Year
Lease
Years
Dollar
General
Annual Rent
Gold's Gym
Annual Rent
Combined
Rents
BTG/BTDG 1 2017 $69,300 $386,292 $455,592
BTG/BTDG 2 2018 $69,300 $392,086 $461,386
BTG/BTDG 3 2019 $69,300 $397,968 $467,268
BTG/Opt1DG 4 2020 $79,014 $403,937 $482,951
BTG/Opt1DG 5 2021 $79,014 $409,996 $489,010
BTG/Opt1DG 6 2022 $79,014 $416,146 $495,160
BTG/Opt1DG 7 2023 $79,014 $422,388 $501,402
BTG/Opt1DG 8 2024 $79,014 $428,724 $507,738
BTG/Opt2DG 9 2025 $86,904 $435,155 $522,059
BTG/Opt2DG 10 2026 $86,904 $441,682 $528,586
BTG/Opt2DG 11 2027 $86,904 $448,308 $535,212
BTG/Opt2DG 12 2028 $86,904 $455,032 $541,936
BTG/Opt2DG 13 2029 $86,904 $461,858 $548,762
BTG/Opt3DG 14 2030 $95,592 $468,786 $564,378
BTG/Opt3DG 15 2031 $95,592 $475,817 $571,409
Opt1G/Opt3DG 16 2032 $95,592 $482,955 $578,547
Opt1G/Opt3DG 17 2033 $95,592 $490,199 $585,791
Opt1G/Opt3DG 18 2034 $95,592 $497,552 $593,144
Time Periods*
BTG = Base term Gold’s Gym (estimated on new lease)
BTDG = Base term Dollar General
Opt = Option periods
Expenses
All CAM’s pass thru to Tenant Expense Break down available upon request
RE Taxes (City of Montrose) $3,697.05
Insurance 74.00
Utilities $4,566.11
Repairs & Maintenance (May vary) $352.45
Snow Removal $500.00
Waste Management $1,231.87
Management Fee (subject to owner’s request) $7,000.00
Total Expenses $17,421.48
San Juan Cinemas
Population 1-Mile 3-Mile 5-Mile
2010 5,589 21,726 27,312
2016 5,497 21,280 26,753
2019 5,881 22,558 28,829
2016
Household
Incomes
1-Mile 3-Mile 5-Mile
Average $54,333 $57,070 $58,610
Median $42,314 $43,583 $44,613
Montrose, Colorado
Montrose, Colorado, sitting at the base of the picturesque Gunnison Gorge National Park, is
named after Sir Walter. Scott's novel A Legend of Montrose.
Montrose has been an agricultural hub for generations since its founding in 1882. Today, the
Black Canyon canal which winds its way thru Montrose is used for recreation and kayaking.
Montrose located along Route 50 is just south of Grand Junction, and south west of Denver,
Colorado off the I-70, situated just north of the New Mexico border.
The Montrose Center is home to two tenants: Dollar General and Gold's Gym. Newly renovated
in 2013 and centrally located these two tenants are some of the only few nationally known
retailers in the County as the region tries to preserve its "old" town community feel. Directly
adjacent to the site and sharing ingress/egress are a Driver's Education School, a Mexican
restaurant, and Ted Nelson's Steakhouse.
The leases are modified NNN in nature with all expenses being passed through to the tenants.
Retailers in the area include: a Kawasaki, Suzuki, Yamaha, Buick, GMC and Toyota dealerships,
Blair's truck stop, a Cinema, Best Western, Super 8, Motel 6, Arby's, Days Inn, Goodyear,
Country Lodge, a Bowling Alley, Alpine Bank a Shell Station and the Montrose
Memorial Hospital. The fairgrounds and the Chamber of Commerce are also in the immediate
area.
Confidentiality Agreement
The information contained in the following Marketing Brochure is proprietary and strictly
confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap
and should not be made available to any other person or entity without the written consent of
Marcus & Millichap.
This Marketing Brochure has been prepared to provide summary, unverified information to
prospective purchasers, and to establish only a preliminary level of interest in the subject
property. The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or
representation, with respect to the income or expenses for the subject property, the future
projected financial performance of the property, the size and square footage of the property and
improvements, the presence or absence of contaminating substances, PCB's or asbestos, the
compliance with State and Federal regulations, the physical condition of the improvements
thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or
intentions to continue its occupancy of the subject property. The information contained in this
Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus &
Millichap has not verified, and will not verify, any of the information contained herein, nor has
Marcus & Millichap conducted any investigation regarding these matters and makes no warranty
or representation whatsoever regarding the accuracy or completeness of the information
provided. All potential buyers must take appropriate measures to verify all of the information
set forth herein.
Net Leased DisclaimerMarcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable.
However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap
conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or
representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a
net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of
all material information before completing any purchase. This Marketing Brochure is not a substitute for your
thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any
obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions,
assumptions or estimates used in this Marketing Brochure are for example only and do not represent the
current or future performance of this property. The value of a net leased property to you depends on factors
that should be evaluated by you and your tax, financial and legal advisors.
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent
investigation of any net leased property to determine to your satisfaction with the suitability of the property for
your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal
and financial advisors must request and carefully review all legal and financial documents related to the
property and tenant. While the tenant’s past performance at this or other locations is an important
consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including
newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with
little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the
tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other
material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic,
environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for
conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of
any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should
default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential
replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of
the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services
and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or
purchase of this net leased property.
Montrose Shopping Center – Gold’s Gym / Dollar General
EXCLUSIVELY REPRESENTED BY:
Lior Regenstreif
Senior Managing Director Investments
Senior Director Net Leased Properties Group
16830 Ventura Blvd., Suite 100
Encino, CA 91436
818.907.9525 Direct
E-mail: [email protected]