vasa fitness - loopnet · attractive 54,743 sf design w/ low rent & price point ... at this...

1150 Washington Blvd, Ogden, UT 84404

VASA FITNESS

INVESTMENT OVERVIEW PROPERTY OVERVIEW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 Marcus & Millichap. All rights reserved. 2

LOCATION OVERVIEW

// Investment HighlightsNNN Fitness of Marcus & Millichap is pleased to offer the opportunity to acquire the VASA Fitness Center building in Ogden, Utah. This two-tenant, 54,743 square foot building is occupied by VASA Fitness, which signed a 15-year lease commencing January, 2016, and America First Credit Union, which has a NNN lease with 7 years remaining. VASA Fitness is the largest operator of fitness clubs in Utah with 28 locations and over 255,000 active members. The clubs feature top-of-the-line equipment, fitness classes, certified personal trainers, and staffed onsite child care centers.

In 2014, Silver Oak Services Partners, a private equity firm focused exclusively on service industry business investments, purchased a 75% stake in VASA Fitness, which was formerly a franchisee of Gold’s Gym. VASA Fitness boasts over a 70%+ market share throughout the Salt Lake Valley.

The property is centrally located along one of the primary retail corridors in Ogden, and part of the 12th Street Plaza, a Shopko-anchored shopping center in close proximity to several residential developments. Other surrounding tenants include Walgreens, Chick-fil-A, Wendy’s, and Jiffy Lube. Average daily traffic on surrounding roads is significant, with Washington Boulevard having 30,300 vehicles daily, while 12th Street boasts 21,875 per day.

The property is offered without any restrictive debt, thereby allowinga buyer to pay cash or obtain new debt as desired at today’s attractive interest rates. Given its ideal mixed-use neighborhood location and strong demographics from which to attract new membership, a significant financial partner, strong rebranding and long-term absolute NNN lease, the VASA Fitness Center building is well positioned to provide consistent returns.

// Investment Summary � Rare Two-Tenant NNN Leased Health Club + Credit Union � Vasa Fitness is the Premiere Health Club Operator in Utah � Located in the Heart of the City of Ogden � Attractive 54,743 SF Design w/ Low Rent & Price Point � Cap Rate Increases to 7.20% in January 2021 � Combined Traffic Counts Exceed 52,000+ Vehicles Per Day � Vasa Fitness has 28 Locations & Over 255K Active Members � Located in one of the Fastest Growing MSA’s in the Country � Vasa is Paying Below Market Rent at Only $9.25/SF

INVESTMENT OVERVIEW PROPERTY OVERVIEW


LOCATION OVERVIEW

// OFFERING SUMMARY

Property Address 1150 Washington Blvd Ogden, UT 84404

Price $8,442,304

NOI $548,776.80

Cap Rate (Current) 6.50%

Cap Rate (2021) 7.20%

Gross Leasable Area (GLA) 54,743 SF

Price/SF $154.22

Year Built 1990/2015

Lot Size 3.21 Acres

Type of Ownership Fee-Simple

VASA FITNESS

AMERICA FIRST CREDIT UNION

* Increases In Options For Vasa:

Years 16-20: $54,971.33/monthYears 21-25: $60,464.00/monthYears 26-30: $66,537.19/month

** Increases In Options For America First Credit Union:

Years 16-20: $5,290/monthYears 21-25: $6,083/month

// LEASE SUMMARIES

Lease Type NNN

Lease Guarantor Corporate Guarantee

NOI $495,679.68

Rent Commencement Date 1/7/2016

Square Feet 53,587

Lease Expiration Date 1/6/2031

Term Remaining on Lease 12+ Years

Options *(3) 5-year

Increases 12% in Year 5, 8% in Year 10

Lease Type NNN

NOI (includes signage rent) $53,097.12

Rent Commencement Date 8/16/2010

Square Feet 1,156

Lease Expiration Date 12/31/2025

Term Remaining on Lease 7+ Years

Options **(2) 5-year

Increases In Options

PROPERTY OVERVIEW


LOCATION OVERVIEWINVESTMENT SUMMARY

W

WASHINGTON BLVD - 30,300 VPD

Utah State Route 39 - 21,875 VPD

Walgreens

PROPERTY OVERVIEW



Born in an aerobics studio in 1981, VASA Fitness has deep and passionate roots in bringing healthy living to communities. From the humble beginnings of 15 students in the first aerobics class, VASA Fitness ran under an operating agreements with the Gold’s Gym brand for 20 years. Recently rebranded as VASA Fitness, the operation includes 28 different locations in 5 different states and over 255,000 active members. For 37+ years, VASA Fitness owners and operators have mastered the art of bringing affordable fitness to the masses in clean, large, and inviting atmospheres. Amenities and features offered at this location include Aerobics/Group Exercise and Spin Classes, Yoga, multiple training areas including HIIT, Cardio, Free Weights, Group, Cross-Functional, and TEAM, Pool, Sauna & Steam Room and Spa, Fitness Cinema, Basketball & Racquetball Courts, Child Care Facilities, Tanning Room, Hydro Massage Lounge, and Personal Training.

Website: www.vasafitness.com

// VASA FitnessSilver Oak Services Partners is a lower middle market private equity firm focused exclusively on service businesses. The firm seeks to make control investments in leveraged acquisition, recapitalization, build-up and growth transactions in business, consumer and healthcare service companies. Silver Oak utilizes a proactive, research-led investment process to identify attractive areas within the services industry and seek out the best potential investment opportunites. The firm brings extensive services industry expertise and relationships to its investments and works closely with its management teams to drive long-term value creation.

Website: www.silveroaksp.com

// Silver Oak Services Partners

America First Credit Union, a not-for-profit, member-owned cooperative financial institution servicing Utah and Nevada, is one of the country’s oldest and largest credit unions. Founded in 1939, America First Credit Union has grown to include over 736,000 members and to have over $7 billion in assets. The credit union also operates 113 branches and its members have free access to over 30,000 ATMs worldwide.

Website: www.americafirst.com

// America First Credit Union

TENANT PROFILES

PROPERTY OVERVIEW



// Location Map

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// Location Aerial

Walgreens

PROPERTY OVERVIEW



// Demographic AnalysisRadius 1 Mile 3 Mile 5 MilePopulation: 2023 Projection 15,357 80,372 143,441

2018 Estimate 14,602 76,454 135,860 2010 Census 13,799 72,427 125,278 Growth 2018-2023 5.17% 5.12% 5.58%

Growth 2010-2018 5.82% 5.56% 8.45%

U.S. Armed Forces: 37 155 228Households: 2023 Projection 5,547 28,484 50,441 2018 Estimate 5,286 27,144 47,788 2010 Census 5,072 26,011 44,178 Growth 2018 - 2023 4.94% 4.94% 5.55% Growth 2010 - 2018 4.22% 4.36% 8.17% Owner Occupied 2,975 15,446 31,006

Renter Occupied 2,311 11,698 16,782

2018 Avg Household Income $50,085 $54,205 $63,509 2018 Med Household Income $40,388 $43,072 $52,528 2018 Households by Household Inc:

<$25,000 1,432 7,242 10,350 $25,000 - $50,000 1,736 8,206 12,524 $50,000 - $75,000 1,165 5,487 9,972 $75,000 - $100,000 604 3,251 6,833 $100,000 - $125,000 139 1,473 3,946 $125,000 - $150,000 100 696 1,785 $150,000 - $200,000 42 446 1,636 $200,000+ 69 343 741

Marcus & 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.

Conf ident ia l i t y Agreement

M A R K T H I E LS E N I O R V I C E P R E S I D E N T I N V E S T M E N T SE | M A R K . T H I E L @ M A R C U S M I L L I C H A P. CO MT |858.373.3206C A L I C E N S E # 01469342

vasa fitness - loopnet · attractive 54,743 sf design w/ low rent & price point ... at this...

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