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NEW YORK | CHICAGO | SAN FRANCISCO | TAMPA | ATLANTAOFFERING MEMORANDUMTRADE NET LEASE WITH CONFIDENCE
CRUNCH FITNESSFITNESS CENTER | CINCINNATI MSA
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM2
All materials and information received or derived from B Plus E NY LLC, its directors, officers, agents, advisors, affiliates, and/or any third-party sources are provided without representation or warranty as to completeness, veracity, or accuracy; condition of the property; compliance or lack of compliance with applicable governmental requirements; developability or suitability; financial performance of the property; or projected financial performance of the property for any party’s intended use or any and all other matters.
Neither B Plus E NY LLC, its directors, officers, agents, advisors, nor affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. B Plus E NY LLC will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third-party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. B Plus E NY LLC makes no warranties and/or representations regarding the veracity, completeness, or relevance of any
financial data or assumptions. B Plus E NY LLC does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors, and other issues in order to determine rents from or for the property.
Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants, and governmental agencies. All properties and services are marketed by B Plus E NY LLC in compliance with all applicable fair housing and equal opportunity laws.
DISCLOSURE
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM3
Spencer Henderson Associate [email protected]
Camille Renshaw CEO & [email protected]
Brooks Hower KY License #: 215383
John Hoagland KY License #: 211238
TABLE OF CONTENTS
EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTS
LEASE ANALYSIS
TENANT OVERVIEW
SURROUNDING TENANT MAP
AREA MAP
LOCATION OVERVIEW
DEMOGRAPHICS
OUR STORY
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CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM4
TENANT Crunch Fitness
ADDRESS 77 Spiral Drive, Florence, KY 41042
ASKING PRICE $4,000,000
ASKING CAP 7.25%
REMAINING TERM +/- 8 Years
RENT INCREASES 1.5% Annually
PPSF $191.24
NOI $290,127
LEASE TYPE NNN
BUILDING SIZE +/- 20,916 SF
LAND AC +/- 2.04 AC
PARKING +/- 128 Spaces
YEAR BUILT | RENOVATED 1994 | 2014
PROPERTY TYPE Fitness Center
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
ASKING PRICE$4,000,000ASKING CAP RATE7.25%
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM5
INVESTMENT HIGHLIGHTS
HIGHLIGHTSNNN LEASEThis investment features a NNN lease, which requires no landlord responsibility.
1.5% ANNUAL RENT INCREASESThis lease features 1.5% annual increases, providing a natural hedge against inflation and increasing return over the life of the investment.
IN-LINE LOCATION WITHIN DENSE RETAIL CORRIDORThis Crunch Fitness is located in a shopping center with national tenants such as The Home Depot, JOANN, and Kohl’s. The shopping center is located in a very dense trade area with many national tenants such as ALDI, Meijer, Best Buy, Chick-Fil-A, Walmart, Sam’s Club, Ashley Home Store, and many others.
TOP HEALTH CLUB IN THE UNITED STATESCrunch Fitness ranked 12th out of 100 health clubs in terms of total revenue in 2018; the company had revenue of +/- $180M in 2018. In July of 2019, Jim Rowley, CEO of Crunch, said his team plans to double the size of the Crunch Fitness brand over the next three to five years. Crunch currently has +/- 300 locations and +/- 1.3M members.
GROWTH OF HEALTH AND WELLNESS INDUSTRYHealth club membership has continued to grow as people have become more conscious about their health and wellness. There are over 62M health club members in the United States, representing just 19% of the population.
SIGNIFICANT FORECASTED POPULATION GROWTHThe area within a 1-mile radius of the property is expected to experience a ~4.80% population increase between 2019-2024.
NEW $1.5B AMAZON HUB LOCATED WITHIN 1 MILEThe Cincinnati/Northern Kentucky International Airport is within 1 mile of the subject property. This airport is a hub for both Amazon Air and DHL Aviation. Additionally, Amazon recently announced a $1.5B expansion effort that is expected to bring 2,700 more jobs to the area.
LOCATED IN THE GREATER CINCINNATI MARKETThe subject property is located in Florence, KY, which is ~7 miles outside of downtown Cincinnati. This is posed for growth as many companies such as Amazon are investing in the Greater Cincinnati market.
OHIO RIVER
CINCINNATI,OHIO
75
71
71
FLORENCE,KENTUCKY
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM6
LEASE ANALYSIS
NOI $290,127
RPSF $13.87
LEASE EXPIRATION September 30, 2027
LEASE TERM 10 Years*
REMAINING LEASE TERM +/- 8 Years
RENT INCREASE 1.5% Annually
RENEWAL OPTIONS 4; 5-Years
LEASE TYPE NNN
LANDLORD RESPONSIBILITIES None**
CRUNCH FITNESS
*Operations began in 2014; lease amended in 2017 for new 10-year term.**Tenant responsible for all costs related to shopping center.
10/1/2019 - 9/30/2020 $290,127 $13.87
10/1/2020 - 9/30/2021 $294,479 $14.08
10/1/2021 - 9/30/2022 $298,896 $14.29
10/1/2022 - 9/30/2023 $303,380 $14.50
10/1/2023 - 9/30/2024 $307,930 $14.72
10/1/2024 - 9/30/2025 $312,549 $14.94
10/1/2025 - 9/30/2026 $317,237 $15.17
10/1/2026 - 9/30/2027 $321,996 $15.39
RENT SCHEDULE
DATES NOI RPSF
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM7
TENANT OVERVIEW | CRUNCH FITNESS
CRUNCH FITNESS Founded in 1989, Crunch Fitness is an industry-leading fitness center that serves over 1.3 million members. Today, the company operates more than 300 locations in the United States and Australia. There are also promises to open an additional 1,000 franchise locations across 29 states and 5 countries. The gyms provide best-in-class strength and cardio equipment and all of the essentials to have a great workout. Beyond this, Crunch also offers a variety of fitness options such as personal training, yoga, Zumba, cycling studios, hip hop aerobics, and many other group classes. Crunch also features amenities including tanning, HydroMassage Therapy, locker rooms, and showers. In addition, Crunch offers members a unique suite of online services as well, including online fitness and nutrition programs that include videos. Crunch Fitness has established itself as the number one high-value/low-price brand in the country. Since 2010, the company has seen a 42% compound annual growth rate in members.
Operate 6 locations.
Fitness Gurus is a dominate franchisee in the Cincinnati, Columbus, and Northern Kentucky markets.
FITNESS GURUS
+/- 300+ locations across 29 states and 5 countries.
+/- $180M in corporate revenue (corporate locations + franchise fees) for 2018.
CRUNCH FITNESS KEY METRICS
1,000+ commitments from franchisees to build more locations.+/- 1.3 million members.
6,400+ median members per club.
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM8
SURROUNDING TENANT MAP
75
75
75
275
275
FLORENCE MALL | 101 STORES
CINCINNATI/NORTHERN KENTUCKY AIRPORT (CVG)
SUMMIT HILLS COUNTRY CLUB
KENTON COUNTYPUBLIC PARK
BECKFIELD COLLEGE | NURSING SCHOOL
ST. ELIZABETH FLORENCE | 142 BEDS
I-7
5 +/- 1
50,000 VPD
• Ranks 4th in North America for Total Cargo Operations• Fastest Growing Cargo Airport in North America• Global Shipping Hub for Amazon Air and DHL Aviation• 8.9M Passengers in 2018• $4.4B Economic Impact
SCHENKER LOGISTICS | 541,000 SF
N
S
CINCINNATI7MI NE
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM9
AREA MAP
OHIO RIVER
KENTUCKY
OHIO
CINCINNATI
75
75
75
71
71
AMAZON DISTRIBUTION
TOYOTA AUTO PARTS DISTRIBUTION
WAYFAIR DISTRIBUTION
CITI BANK CORPORATE OFFICE
NORTHERN KENTUCKY UNIVERSITY
DHL
KROGER DISTRIBUTION
N
S
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM10
LOCATION OVERVIEW
GREATER CINCINNATI is a metropolitan area that includes parts of Ohio, Kentucky, and Indiana. The population is about 2.2 million, making it the 29th largest in the United States. The area is anchored by the city of Cincinnati, which is located on the northern side of the confluence of the Licking and Ohio rivers. Cincinnati is currently the fastest-growing of all major Midwestern cities in terms of economic output. Powering the growth is its professional and business services sector, which includes legal, accounting, architectural, engineering, advertising, and other services. Fortune 500 companies headquartered in Cincinnati include Proctor & Gamble, The Kroger Company, Macy’s, and General Electric. Manufacturing accounts for 12.7% of employment by the industry sector.
CINCINNATI, OH
MAJOR FREEWAYS: I-71, I-74, I-75
COLLEGES AND UNIVERSITIES: University of Cincinnati, Xavier University, Miami University, Northern Kentucky University
PROFESSIONAL SPORTS TEAMS: Cincinnati Reds (MLB), Cincinnati Bengals (NFL), and FC Cincinnati (MLS)
AIRPORTS: Cincinnati/Northern Kentucky International Airport (CVG), Lunken Airport, Butler County Regional Airport
THE KROGER COMPANY 20,000+
UNIVERSITY OF CINCINNATI 15,000+
CINCINNATI CHILDREN’S HOSPITAL MEDICAL CENTER 12,000+
THE PROCTER & GAMBLE COMPANY 12,000+
TRIHEALTH, INC. 10,000+
UC HEALTH 8,000+
GE TRANSPORTATION 7,500+
ST. ELIZABETH HEALTHCARE 7,000+
FIFTH THIRD BANK 7,000+
COMPANY NAME NUMBER OF EMPLOYEES
MAJOR EMPLOYERS
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM11
LOCATION OVERVIEW | CONTINUED
NORTHERN KENTUCKY TRI-ED has been named one of the top 15 economic development groups in the US. The area benefits from low energy costs, deep talent pools, and its central location. Top industries in the region include automotive manufacturing, aerospace manufacturing, financial services, food, life sciences, and logistics. Click To View Site.
NORTHERN KENTUCKY ECONOMIC DEVELOPMENT
AMAZON PRIME AIR HUB
AMAZON’S $1.49 BILLIONPRIME AIR HUB
DHL & KROGER
NORTHERN KENTUCKY MARKET STATISTICS
Cincinnati Metropolitan Population +/- 2.1 Million
100+ Logistics Companies
1-Day Drive or 90-min flight from 2/3 of US Population
2-Day Drive From 90% of US Population
40+ Automotive Companies
CVG is 8th largest cargo airport in North America, 34th in the world#1 most cost-friendly location among large US cities
11.3% cost savings for R & D operations compared to national average
+/- 1.00 AC
+/- 3M SF & 350K SF Buildings
+/- 100 Aircraft Parking Positions+/- 2,700 Jobs
DHL GLOBAL HUB
$339M invested since 2009
1 of 3 in the world
181 Acres
3,300 Employees
KROGER DISTRIBUTION CENTER
Kroger purchased facility in 2017 for $60MInvested additional $17M in 2018
+/- 674,000 SF
+/- 250 Employees
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM12
DEMOGRAPHICS
10 MILES
5 MILES
2 MILES
POPULATION
2 MILES 5 MILES 10 MILES
2019 TOTAL POPULATION 2 9 , 4 8 0 1 5 0 , 1 0 0 4 4 3 , 2 4 0
2024 POPULATION 3 1 , 0 1 5 1 5 5 , 6 9 4 4 5 4 , 2 0 9
POP GROWTH 2019-2024 5 . 2 1 % 3 . 7 3 % 2 . 4 7 %
AVERAGE AGE 3 8 . 1 0 3 7 . 3 0 3 7 . 3 0
HOUSEHOLDS
2 MILES 5 MILES 10 MILES
2019 TOTAL HH 1 2 , 2 3 9 5 7 , 4 3 8 1 7 2 , 9 2 0
HH GROWTH 2019-2024 5 . 1 1 % 3 . 7 1 % 2 . 4 9 %
MEDIAN HH INCOME $ 4 9 , 4 8 3 $ 6 6 , 6 7 7 $ 5 9 , 0 6 8
AVG HOUSEHOLD SIZE 2 . 4 0 2 . 6 0 2 . 5 0
HOUSING
2 MILES 5 MILES 10 MILES
MEDIAN HOME VALUE $ 1 3 4 , 8 5 4 $ 1 6 4 , 7 3 4 $ 1 5 9 , 1 3 8
MEDIAN YEAR BUILT 1 9 7 7 1 9 8 8 1 9 7 1
CRUNCH FITNESS | CINCINNATI MSA BENETLEASE.COM13
B+E is a modern investment brokerage firm, specializing in net lease real estate and 1031 exchanges. We help clients buy and sell single tenant real estate. Founded by deeply experienced brokers, B+E redefines trading through an intuitive end-to-end transaction platform comprising of user-friendly dashboards and an AI-driven exchange — all leveraging the largest data set in the net lease industry. Complementing senior talent with exceptional technology, B+E's proprietary process affords greater speed, unrivaled transaction efficiencies, and stronger asset value. With offices in New York, Chicago, Atlanta, Tampa, and San Francisco, our brokers trade property for our clients across the US. B+E allows virtually anyone to confidently trade net lease real estate.
THIS IS OUR STORY
TRADE NET LEASE WITH CONFIDENCE
New York261 Madison Ave., 9th Floor
New York, NY 10016
Tampa2303 North Florida Ave.
Tampa, FL 33602
Chicago 980 North Michigan Ave.
Chicago, IL 60611
San Francisco303 Sacramento St., 4th Floor
San Francisco, CA 94111
Atlanta1175 Peachtree St. NE
Atlanta, GA 30361
646.770.0659 | [email protected]
