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LA FITNESSHOUSTON, TX
CORPORATE NET-LEASE LA FITNESS IN AFFLUENT HOUSTON SUB-MARKET
2
LA FITNESS
8.20%CAP
$11,021,000PRICE
6386 N ELDRIDGE PKWY, HOUSTON TX 77041
Infill location in densely populated northwest Houston neighborhood
Incomes within 1-mile radius near $120,000
Fitness center concept is internet-resistant and growing in popularity
Adjacent to Dril-Quip world headquarters (218-acre campus) and Toshiba’s Global Power Electronics HQ
Easily accessible from N Eldridge Parkway (35,000+ VPD)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. Buyer must verify the information and bears all risk for any inaccuracies.
LEASABLE SF42,061 SF
LEASE EXPIRATION02/29/2024
LEASE TYPECORPORATE NN
LAND AREA3.88 AC
YEAR BUILT2008
PARKING308 SPACES
3
Overview
THE OFFERING provides an investor with the opportunity to acquire a corporate LA Fitness property located in an affluent and densely populated Houston sub-market. LA Fitness is currently on a 15-year lease (6+ years remaining) that includes three 5-year extension options, with built-in rental escalations at the start of each option period. The Landlord benefits from minimal expense and management obligations, making this a highly passive investment. LA Fitness is a fitness club with over 690 locations across the United States.
Contact the team
THE U.S. GYM & FITNESS MARKET BRINGS IN APPROXIMATELY $31 BILLION ANNUALLY
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. Buyer must verify the information and bears all risk for any inaccuracies.
THE SUBJECT PROPERTY is conveniently situated along an infill corridor of northwest Houston, and is surrounded by a complimentary mix of retail properties, as well as office, industrial and manufacturing campuses. Directly across the street is the Dril-Quip Inc. World Headquarters (leading manufacturer of offshore drilling and production equipment), which features 16 major buildings totaling 1,620,900 square feet of space. Additionally, Toshiba’s Global Power Electronics headquarters is just around the corner from the subject property, helping to further drive daytime traffic to the area. The Houston LA Fitness benefits from excellent demographics, including a population that exceeds 269,000 and an average household income that exceeds $96,000 within a 5-mile radius.
CHRIS [email protected]: 415.274.2701CA BRE# 01002010
ZEB [email protected]: 415.274.2702CA BRE# 01242540
CHRIS [email protected]: 415.274.2703CA BRE# 01339983
JACK [email protected]: 415.274.2705
CA BRE# 01909630
IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC214.888.8262
4
Investment Highlights
N ELDRIDGE PARKWAY
W L
ITTL
E YO
RK R
OA
DLEE ELEMENTARY
H&R BLOCK30,928
VPD
33,990 VPD
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. Buyer must verify the information and bears all risk for any inaccuracies.
Zoomed-In Aerial
5
WORLD HEADQUARTERS
GLOBAL POWER ELERTONICS
HEADQUARTERS
290
290
ELDRIDGE PARKWAY
CYPRESS CREEK
PARKWAY
W LITTLE
YORK ROAD
SPEN
CER
RO
AD
SPEN
CER
RO
AD
6
LEE ELEMENTARY
HAIRGROVE ELEMENTARY
CYPRESS RIDGE HIGH
SCHOOL
EMMOTT ELEMENTARY
BRENTWOOD CHILDREN ACADEMY
HEARTHSTONE COUNTRY
CLUB
JERSEY MEADOW GOLF
COURSE
HORNE ELEMENTARYTRUITT
MIDDLE SCHOOL
CYPRESS FAIRBANKS
MEDICAL CENTER
NORTH CYPRESS MEDICAL CENTER
CYPRESS FALLS HIGH
SCHOOL
OWENS ELEMENTARY
HOUSTON CITY
CENTER
33,990 VPD
35,220 VPD
40,530 VPD
164,340 VPD
143,000 VPD
30,928 VPD
50,980 VPD
Zoomed-Out Aerial
6This 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. Buyer must verify the information and bears all risk for any inaccuracies. 6
KrogerMcDonald’sWalgreensBank of TexasT-MobileDril-Quip IncJimmy John’s
Toshiba InternationalSubwayLittle Caesar’s PizzaBank of AmericaAuto ZoneSonic Drive-InNational Oilwell Varco
ValeroPumpd Nutrition & SmoothiesBurger KingMetroPCSRegions BankPhilips 66
BUSINESS SUMMARY
KEY 1-MILE 3-MILES 5-MILES
TOTAL 1-MILE 3-MILES 5-MILES
Businesses 356 3,736 9,169
Employees 6,684 56,925 137,000
Residential Population 9,711 89,348 269,416
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. Buyer must verify the information and bears all risk for any inaccuracies.
Submarket Overview
RETAILERS IN CLOSE PROXIMITY INCLUDE:
7
8
Subject Property
9
Surrounding Retail
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. Buyer must verify the information and bears all risk for any inaccuracies.
PRICE $11,021,000 Price Per Square Foot: $262.02
Capitalization Rate: 8.20%
Total Rentable Area (SF): 42,061
Lot Size (AC): 3.88
STABILIZED INCOME PER SQUARE FOOTScheduled Rent $21.64 $910,054
Effective Gross Income $21.64 $910,054
LESS PER SQUARE FOOTTaxes NNN $0.00
Insurance NNN $0.00
Cap Ex Reserve ($0.15) ($6,309.15)
Total Operating Expenses ($0.15) ($6,309.15)
EQUALS NET OPERATING INCOME $903,745
10
Income & Expense
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. Buyer must verify the information and bears all risk for any inaccuracies.
TENANT INFO LEASE TERMS RENT SUMMARY
TENANT NAME SQ. FT. CURRENT RENT
MONTHLY RENT
YEARLYRENT
MONTHLY RENT/FT
YEARLYRENT/FT
L.A. Fitness 42,061 2/17/2009 2/28/2014 $65,625 $787,500 $1.56 $18.72
3/1/2014 2/28/2019 $70,547 $846,562 $1.68 $20.13
3/1/2019 2/29/2024 $910,054 $75,838 $910,054 $1.80 $21.64
Option 1 3/1/2024 2/28/2029 $81,526 $978,308 $1.94 $23.26
Option 2 3/1/2029 2/28/2034 $87,640 $1,051,681 $2.08 $25.00
Option 3 3/1/2034 2/28/2039 $94,213 $1,130,557 $2.24 $26.88
TOTALS: 42,061 $910,054 $75,838 $910,054 $1.80 $21.64
*Seller to credit Buyer the difference in rent from Close of Escrow through March 1, 2019
11
Rent Roll
BASE RENT
DATE RANGE MONTHLY RENT ANNUAL RENT
2/17/2009 - 2/28/2014 $65,625 $787,5003/1/2014 - 2/28/2019 $70,547 $846,5623/1/2019 - 2/28/2024 $75,838 $910,054
OPTION RENTS
DATE RANGE MONTHLY RENT ANNUAL RENT
#1. 3/1/2024 - 2/28/2029 $81,526 $978,308#2. 3/1/2029 - 2/28/2034 $87,640 $1,051,681#3. 3/1/2034 - 2/28/2039 $94,213 $1,130,557
RENT
TENANT LA FitnessBUILDING SF 42,061 SFLEASE TYPE Corporate NNTERM 15 YearsEXPIRATION February 28, 2024OPTIONS Three 5-year options
PREMISE& TERM
TAXESTenant shall reimburse Landlord for the ad valorem taxes payable with respect to the Property.
UTILITIES
Tenant is responsible for the payment of all utility charges, and shall pay directly to the utility provider.
INSURANCETenant shall maintain the following insurance policies: (1) Standard “all risk” property insurance; (2) Commercial general liability insurance, naming Landlord as additional insured, with limits no less than $1 million per occurrence and $2 million in aggregate; (3) Products liability insurance; (4) Workers’ compensation coverage; (5) Contingent liability and builder’s risk insurance with respect to alterations and improvements; and (6) Rental value insurance for 12 months
Landlord shall maintain the following insurance policies: (1) “All-risk” insurance covering loss or damage to the common areas and Landlord’s personal property; (2) Combined single limit bodily injury and broad form property damage insurance with limits no less than $1 million per occurrence and $2 million in aggregate. Tenant reimburses Landlord for its insurance costs.
TENANT’S OBLIGATIONSTenant is responsible for the maintenance and repair of the nonstructural portions of the premises, including the HVAC system.
LANDLORD’S OBLIGATIONSLandlord is responsible for the maintenance and repair of the roof and structure, as well as the common areas.
CAMTenant shall reimburse Landlord for common area expenses.
ESTOPPELSWithin 10 business days after written request, the other party shall execute and deliver an estoppel.
EXPENSES
LEASEPROVISIONS
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. Buyer must verify the information and bears all risk for any inaccuracies.
12
Lease Abstract
N ELDRIDGE PARKWAY
W L
ITTL
E YO
RK R
OA
D
30,928 VPD
33,990 VPD
NOT A PART
LIQUOR & LIQUORS TIO CHUCOS VOGUE CLEANERS TERIYAKI HOUSE CHAMPION REAL ESTATE GROUP
CHINOIS ORIENT BISTRO DOLLAR CITY GLOBAL MAIL & PRINTING
13This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
NATIONAL OILWELL VARCO
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Surrounding Retail Site Plan
LOCATIONS IN THE U.S. AND CANADA690+
LA Fitness International LLC is a privately owned American fitness club chain founded in 1984 and based in Irvine, California. The company is one of the fastest growing health clubs chains in the U.S. and, since its founding, has grown to millions of members and nearly 700 clubs across the U.S. and Canada.
LA Fitness is a multipurpose sports and fitness club featuring diverse state-of-the-art amenities, typically including cardio & strength equipment, personal training, indoor cycling, group exercise classes, pool, spa, basketball courts & racquetball. LA Fitness seeks to find innovative ways to create a diverse membership base with the goal of enhancing physical and emotional wellbeing for all through the widest range of amenities and the friendliest service at an affordable price.
ABOUT LA FITNESS
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. Buyer must verify the information and bears all risk for any inaccuracies.
NUMBER OF EMPLOYEES 18,000
14
Tenant Overview
POPULATION
1-MILE 3-MILES 5-MILES
2010 9,559 82,288 245,247
2017 9,711 89,348 269,416
2022 9,967 94,716 288,381
2017 HH INCOME
1-MILE 3-MILES 5-MILES
Average $119,336 $97,615 $96,289
Median $87,258 $70,861 $72,706
LA FITNESS
DOWNTOWN HOUSTON (20 MILES)
THE AVERAGE HOUSEHOLD INCOME WITHIN A 3-MILE RADIUS
IS OVER $97K
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. Buyer must verify the information and bears all risk for any inaccuracies.
TOP EMPLOYERS - HOUSTON
EMPLOYER # OF EMPLOYEES
Walmart 37,000
Memorial Hermann Health System 24,108
H-E-B 23,732
University of Texas 21,086
Houston Methodist 20,000
15
Demographics
HOUSTON is the fourth-largest city in the United States and the largest city within the state of Texas. The city has a population of about 2.3 million within an area of 656 square miles. Houston is home to two major airports, George Bush International Airport, one of the country’s busiest airports and international hubs, and William P. Hobby Airport. The Texas Medical Center, located in Houston, is the largest medical complex in the world, serving more than 10 million patients per year.Houston boasts more than 14 colleges and universities offering higher education options to more than 315,000 students enrolled in over 500 degree and certification programs in the city.The city has major profession league teams in almost every sport including: MLB - the Houston Astros, NBA - the Houston Rockets, NFL - the Houston Texans, MLS - the Houston Dynamo, and MLR - the Houston Sabercats.
Space Center Houston,
6.7 MILLIONHOUSTON MSA POPULATION (ESTIMATED)
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. Buyer must verify the information and bears all risk for any inaccuracies.
DOWNTOWN HOUSTON
HOUSTON,TEXAS
HOUSTON’S economy has a broad industrial base in the energy, manufacturing, aeronautics, transportation, and health care sectors and is a leading center for building oil field equipment. Only New York City is home to more Fortune 500 headquarters in the city limits. It is home to many cultural institutions and exhibits—attracting more than 7 million visitors a year to the Houston Museum District and the Space Center Houston.
16
Location Overview
We’d love to hearfrom you.
CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:
CHRIS [email protected]: 415.274.2701CA BRE# 01002010
ZEB [email protected]: 415.274.2702CA BRE# 01242540
CHRIS [email protected]: 415.274.2703CA BRE# 01339983
JACK [email protected]: 415.274.2705
CA BRE# 01909630
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. Buyer must verify the information and bears all risk for any inaccuracies.
IN CONJUNCTION WITH TX LICENSED BROKER: Steve SielingAzur Commercial Capital, LLC214.888.8262
JOE CACCAMOJOHN ANDREINI
ZANDY SMITH
DAVE LUCAS
RICK SANNER
CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS
JACK NAVARRA
Copyright © 2018 Capital Pacific Partners
SFO. PDX. SEA. CAPITALPACIFIC.COM
11-2-2015
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brokerage services to prospective buyers, tenants, sellers and landlords.
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