Gold s Gym ABSOLUTE NNN Freestanding GYM SHADOW ANCHORED BY THE HOME DEPOT 2909 Duportail Street, Richland, WA 99352 [ www.capitalpacific.com ]
PROperty Summary FREESTANDING SINGLE TENANT ABSOLUTE NNN LEASED PROPERTY LOCATED IN RICHLAND, WA (an INCOME TAX FREE STATE) This offering presents an opportunity to acquire an absolute NNN lease with 11+ years remaining on the primary term. The lease features annual rent increases throughout the primary term and in each of the four 5-year options. Gold s Gym offers a full-service fitness experience, with several amenities including fitness classes, personal training, child care, and a juice bar. The guarantor currently operates a total of two locations, one in Richland, and one in Kennewick, WA. The lease is guaranteed by a high-net -worth family trust, with an estimated net worth in the high ten figure range (speak with agent for details). The subject property benefits from excellent demographics, with household incomes of nearly $99,000 within a 1-mile radius and a population of approximately 82,000 residents within a 5-mile radius. The property is located in a dense retail corridor with the following national tenants in the immediate area: The Home Depot, Walmart Supercenter, Target, McDonald s, Chase Bank, Panda Express, and many others. PRICE: $11,025,000 CAP: 7.50% Rentable SF...56,700 SF Price per SF...$194.44 land area... 6.65 AC YEAR BUILT...2011 Current Rent...$14.58/SF Listing Team Contact Info John Andreini jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 chris kostanecki ck@capitalpacific.com (415) 274-2701 CA BRE# 01002010 jack navarra jnavarra@capitalpacific.com (415) 274-2705 CA BRE# 01909630 SEAN TUFTS stufts@capitalpacific.com (206) 743-8468 WA BRE# 74057 david gellner dgellner@capitalpacific.com (206) 913-2842 WA BRE# 112893 Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. gold s gym 2
core characteristics investment highlights Incredible real estate with huge traffic counts Located adjacent to The Home Depot with Target, Marshalls, Petco, Walmart Supercenter, and a variety of other national tenants in the immediate area Average household incomes are above $90,000 in 1, 3, and 5-mile radii Very stable/educated economy and employment base Kadlec Regional Medical Center, which supports the entire county, is located in Richland and is one of only ten US Department of Energy national laboratories (8,000 employees). Another major employer is Bechtel, which is the 4th largest privately owned company in the world. These two corporations are drivers of the high incomes in the area tenant highlights (see page 9 for more details on Guarantor/operator): Gold s Gym has over 77 locations in 38 states across 22 countries around the world Operator/Guarantor has a very strong net worth and operates two Gold s Gym locations LEase highlights 11+ year absolute net lease with four 5-year options Annual bumps equal to lesser of 1.35% or 1.25X CPI The lease is guaranteed by a high net worth family trust, currently estimated at more than $75 million Average Household Incomes of nearly $100,000 within a 1-mile radius gold s gym 3
zoomed-in aerial located in the most dominant retail node in richland Liberty Christian School BUCKSKIN GOLF CLUB Tacoma 240 Richland High School Marcus Whitman Elementary Carmichael Middle School VINTNER SQUARE ay on W ingt sh Wa Lewis & Clark Elementary rge Geo Rivers Edge High School 240 COLUMBIA POINT GOLF COURSE 18,594 DAILY 182 12 Ke 182 12 12,206 DAILY en oa d il orta Dup et Stre gate ens Que Drive er 240 White Bluffs Elementary 182 12 gold s gym 4
photos Subject property is adjacent to The home depot, target, petco, marshalls and many others gold s gym 5
income & expense PRICE $11,025,000 Price Per Square Foot: $194.44 Capitalization Rate: 7.50% Total Rentable Area (SF): 56,700 Lot Size (AC): 6.65 STABILIZED INCOME Per Square Foot Scheduled Rent $14.58 $826,749 Effective Gross Income $14.58 $826,749 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $826,749 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. gold s gym 6
rent roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT Gold s Gym 56,700 06/12/12 6/31/2016 $67,978 $815,737 $1.20 $14.39 07/01/16 6/31/2017 $826,749 $68,896 $826,749 $1.22 $14.58 07/01/17 6/31/2018 $69,826 $837,911 $1.23 $14.78 07/01/18 6/31/2019 $70,769 $849,222 $1.25 $14.98 07/01/19 6/31/2020 $71,724 $860,687 $1.26 $15.18 07/01/20 6/31/2021 $72,692 $872,306 $1.28 $15.38 07/01/21 6/31/2022 $73,674 $884,082 $1.30 $15.59 07/01/22 6/31/2023 $74,668 $896,017 $1.32 $15.80 07/01/23 6/31/2024 $75,676 $908,114 $1.33 $16.02 07/01/24 6/31/2025 $76,698 $920,373 $1.35 $16.23 07/01/25 6/31/2026 $77,733 $932,798 $1.37 $16.45 07/01/26 6/31/2027 $78,783 $945,391 $1.39 $16.67 Totals: 56,700 $826,749 $68,896 $826,749 $1.22 $14.58 Annual rent increases of the lesser of 1.25x CPI or 1.35% Seller to credit the difference in current rent and rent as of 7/1/16 at close of escrow. 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. gold s gym 7
site plan Site Plan Key Parcel outline: Land Area: 6.65 AC Building Area: 56,700 sf Ingress/Egress: Kennedy Road Duportail Street 12,206 DAILY SUBJECT PROPERTY NOT A PART 12 ON-RAMPS AND OFF-RAMPS Queensgate Drive This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. gold s gym 8
tenant overview About gold s gym Founded in 1965, Gold s Gym is the most recognized name in fitness serving more than 3 million members in 38 states and 22 countries around the world. Always at the forefront of the fitness revolution, Gold s Gym has continually evolved its profile by equipping gyms with the best amenities and the latest in cardio and strength training equipment as well as the most dynamic group exercise programs including Zumba, yoga, group cycling, mixed martial arts, muscle endurance training, and Pilates. TYPE PRIVATE LOCATIONS 700+ HEADQUARTED DALLAS, TX www.goldsgym.com About guarantor The guarantor operates two Gold s Gym locations in the Tri-Cities area. These include the subject property and another in Kennewick. Both facilities are full-service, state-of-the art fitness facilities with swimming pools, raquetball, basketball, kids clubs, group x classes, juice bars, cardio cinema, hot tubs, steam rooms, dry saunas, locker rooms with showers, and personal trainers. Backing the lease is a very strong family trust with a net worth in the high 10 figures range (speak to Agent for more details). gold s gym 9
demographics & regional map 12,206 DAILY Population 1-Mile 3-Mile 5-Mile 2010 3,209 34,754 74,509 2015 3,734 38,562 82,038 2020 4,316 41,897 89,118 18,594 DAILY 2015 Household incomes 1-Mile 3-Mile 5-Mile Average $98,789 $90,453 $91,085 Median $83,183 $72,921 $75,148 seattle Top Employers in richland, wa Employer # of Employees* Pacific Northwest National Laboratory 7,693 Kadlec Regional Medical Center 2,754 Bechtel 2,006 Washington River Protection Solutions 1,518 *Approximate richland gold s gym 10
location About richland, wa Richland is located in Benton County in the southeastern part of Washington. With an estimated 2013 population of over 51,000, Richland is a member of the Tri-Cities, along with Pasco and Kennewick, and is known for its technology and agriculture industries. As home to the Hanford nuclear site, Richland remained a center of production and research into nuclear energy and related technology after the end of WWII. The Pacific Northwest National Laboratory has been in Richland since 1965 and one of two Laser Interferometer Gravitational-Wave Observatory sites is located immediately north of the city. Agriculture is also important in the Richland area; the Tri-Cities area of the Columbia Basin grows excellent produce. Richland hosts an important food processor, ConAgra Lamb-Weston, which processes potatoes and other foods. center of technology and agriculture In addition, the production of wine in the lower Columbia Basin has become one of the main industries in Richland. Richland lies at the center of a flourishing viticulture area, which produces internationally recognized wines in four major Washington appellations and serves as an ideal center for wine tours. Richland is also home to Washington State University, Tri-Cities, which has about 1,500 students, and a branch of Columbia Basin College. gold s gym 11
A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ www.capitalpacific.com ] John Andreini jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 Jack Navarra jnavarra@capitalpacific.com (415) 274-2705 CA BRE# 01909630 chris kostanecki ck@capitalpacific.com (415) 274-2711 CA BRE# 01002010 SEAN TUFTS stufts@capitalpacific.com (206) 743-8468 WA BRE# 74057 david gellner dgellner@capitalpacific.com (206) 913-2842 WA BRE# 112893 Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. zeb ripple rick sanner bob sanner dave lucas zandy smith chris peters john andreini joe caccamo gregg steele karla zens [ Copyright 2016 Capital Pacific ]