la fitness - exp realty advisors

EXP DALLAS

214.522.7200

JOE CAPUTO

[email protected]

BOB MOORHEAD

[email protected]

property. Brand new 47,500+ SF building on 1.63+ acres.

lease structure. Corporate, 15 year, net lease, with 10% or CPI increases every 5-years whichever is lower. Occupancy is scheduled for December 2013 and

Rent Commencement May 2014.

location. The subject property is located at the intersection of University Avenue (21,954 Cars / Day) and Markham Street (24,797 Cars / Day). The site is across

from Midtowne Little Rock (136,865 SF), a newly constructed, open-air lifestyle center. Tenants in Midtowne Little Rock include The Container Store, Pottery

Barn, Williams-Sonoma, Ann Taylor LOFT, Lewis & Clark, Pei Wei Asian Diner, and Starbucks. Also across from Park Plaza which boasts 546,000 square feet of

retail space, and houses Abercrombie & Fitch, Aeropostale, ALDO, American Eagle Outfitters, Ann Taylor, Banana Republic, Bath & Body Works, Coldwater

Creek, Crabtree & Evelyn, Dillard’s, Eddie Bauer, Gap, Gap Maternity, GapKids/Baby Gap, Gymboree, Lane Bryant, The Limited, Limited Too, Talbots, Talbots

Petites, Talbots Woman, Victoria’s Secret, and Zales.

EXCLUSIVE OFFERING | $12,215,000 / 7.00% cap

La fitness

University avenue & markham street, little rock, ar

Rep Photo

St. Vincent

Health Center

(420 Beds)

INVESTMENT OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS

Table of contents La fitness


PAGE 16-17: LOCATION MAPS

PAGE 18: DEMOGRAPHICS

PAGE 4-5: SITE PLAN

PAGE 9-14: AERIAL PHOTOS

PAGE 15: LOCATION OVERVIEW

PAGE 6: ELEVATIONS

PAGE 7-8: FLOOR PLAN

EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the

property located at University Avenue & Markham Street, Little Rock, AR by the owner of

the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is”

condition and Seller and Agent make no representations or warranties as to the accuracy of

the information contained in this Offering Memorandum. The enclosed materials include

highly confidential information and are being furnished solely for the purpose of review by

prospective purchasers of the interest described herein. The enclosed materials are being

provided solely to facilitate the prospective investor’s own due diligence for which it shall be

fully and solely responsible. The material contained herein is based on information and

sources deemed to be reliable, but no representation or warranty, express or implied, is

being made by Agent or Seller or any of their respective representatives, affiliates, officers,

employees, shareholders, partners and directors, as to the accuracy or completeness of the

information contained herein. Summaries contained herein of any legal or other documents

are not intended to be comprehensive statements of the terms of such documents, but

rather only outlines of some of the principal provisions contained therein. Neither the Agent

nor the Seller shall have any liability whatsoever for the accuracy or completeness of the

information contained herein or any other written or oral communication or information

transmitted or made available or any action taken or decision made by the recipient with

respect to the Property. Interested parties are to make their own investigations, projections

and conclusions without reliance upon the material contained herein. Seller reserves the

right, at its sole and absolute discretion, to withdraw the Property from being marketed for

sale at any time and for any reason. Seller and Agent each expressly reserves the right, at

their sole and absolute discretion, to reject any and all expressions of interest or offers

regarding the Property and/or to terminate discussions with any entity at any time, with or

without notice. This offering is made subject to omissions, correction of errors, change of

price or other terms, prior sale or withdrawal from the market without notice. Agent is not

authorized to make any representations or agreements on behalf of Seller. Seller shall

have no legal commitment or obligation to any interested party reviewing the enclosed

materials, performing additional investigation and/or making an offer to purchase the

Property unless and until a binding written agreement for the purchase of the Property has

been fully executed, delivered, and approved by Seller and any conditions to Seller’s

obligations hereunder have been satisfied or waived. By taking possession of and

reviewing the information contained herein, the recipient agrees that (a) the enclosed

materials and their contents are of a highly confidential nature and will be held and treated

in the strictest confidence and shall be returned to Agent or Seller promptly upon request;

and (b) the recipient shall not contact employees or tenants of the Property directly or

indirectly regarding any aspect of the enclosed materials or the Property without the prior

written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be

copied or otherwise reproduced without the prior written authorization of Seller and Agent.

DisclaimER

Listed in association with ARKANSAS broker of record: Flake & kelley commercial

LA FITNESS | www.lafitness.com

LA Fitness is a privately owned American health club chain with over 500 clubs across 25 US states and Canada making it the largest gym chain in the US. The

company was formed in 1984 and is based in Irvine, California. In 1995, LA Fitness designed and built a new multipurpose sports and fitness club that became the

company’s signature model at the time. This prototypical design starts with the strength and cardio equipment, free weights and group exercise room that are

found in most fitness centers and adds a swimming pool and court sports (basketball and racquetball in most locations) to offer LA Fitness members a wider

variety of workout options.

With a successful prototype in place, LA Fitness then expanded its in-house development efforts, and new club construction now accounts for the vast majority of

the clubs opened every year. In 1998, with 12 proven prototype clubs in Southern California and Arizona, the company rapidly increased the rate of new club

development and began rolling out its concept into several new geographic regions across the U.S., including the Sun Belt, the Pacific Northwest, the Mid-Atlantic

states, the Northeast, and the upper Midwest. The rate of expansion was rapid, with over 180 new clubs added from 2006 to 2009. In 2000, the company acquired

the then largest health club chain in Atlanta and eventually replaced its 25 units with 14 larger prototype clubs. The company continued to build clubs in the Atlanta

area and currently has 26 clubs in Georgia. In 2007, the company expanded outside of the United States by way of an acquisition of six fitness clubs, in Toronto,

Canada. Also of notable size, in 2010 the company acquired 10 locations in Phoenix from Pure Fitness Arizona. On July 2, 2012, the company completed the

acquisition of all 33 Lifestyle Family Fitness Clubs in Florida. LA Fitness remains a privately owned company, with major ownership interests held by private equity

firms Seidler Equity Partners, CIVC Partners and Madison Dearborn Partners.

PRICE: $12,215,000

CAP RATE: 7.00%

NET OPERATING INCOME: $855,000

BUILDING AREA: 47,500+ Square Feet

LAND AREA: 1.63+ Acres

YEAR BUILT: 2013 (Under Construction)

LANDLORD RESPONSIBILITY: Includes Roof & Structure

OWNERSHIP: Fee Simple Interest

OCCUPANCY: 100% (November 2013)

Tenant overview

3

Investment overview La fitness


Projected Lease Expiration: May 2029

Projected Rent Commencement: May 2014

Initial Lease Term: 15-Years, Plus 3, 5-Year Options to Renew

Rent Increases: Every 5-Years, CPI or 10% Whichever is Less

Year 1-5 Annual Rent (Current): $855,000

Lease Type: Double Net

Year 16-20 Annual Rent (Option 1): $1,138,805



Year 6-10 Annual Rent: $940,500

Year 11-15 Annual Rent: $1,034,550

4

SITE PLAN La fitness


5

SITE PLAN La fitness


6

ELEVATIONS La fitness


7

Floor plan La fitness


8

Floor plan La fitness


9

Aerial photo La fitness


Doctor’s Hospital

St. Vincent

Health Center

(420 Beds)

Park Avenue Lofts

(258 Units)

10



St. Vincent

Health Center

(420 Beds)

Park Avenue Lofts

(258 Units)

11



Doctor’s Hospital

St. Vincent

Health Center

(420 Beds)

Park Avenue Lofts

(258 Units)

12



Park Avenue Lofts

(258 Units)

Doctor’s Hospital

Catholic High School for Boys

Interstate 630 (115,000 Cars / Day)

13



Doctor’s Hospital

St. Vincent Health Center

(420 Beds)

Park Avenue Lofts

(258 Units)

Catholic High School for Boys

Forest Heights Middle School

14



IMMEDIATE TRADE AREA

The subject property is located at the intersection of University Avenue (21,954

Cars / Day) and Markham Street (24,797 Cars / Day). Just east on Markham,

War Memorial Park includes War Memorial Stadium (54,120 Seats), the Little

Rock Zoo and many other amenities. Surrounding the Midtowne area, there

are 3 major neighborhoods: Hillcrest, immediately east of University Avenue;

the Heights, to its north; and Briarwood, east of and contiguous to the site.

Within 1-mile, residents have fewer children, have smaller households, are

more affluent, are more educated, and are more likely to be employed in

executive, managerial or professional specialty occupations. Estimated

disposable income for Little Rock and North Little Rock is $18.4 billion.

The site is across from Midtowne Little Rock (136,865 SF), a newly

constructed, open-air lifestyle center. Tenants in Midtowne Little Rock include

The Container Store, Pottery Barn, Williams-Sonoma, Ann Taylor LOFT, Lewis

& Clark, Pei Wei Asian Diner, and Starbucks. The site is also next to Park

Plaza, a traditional enclosed mall which underwent a recent multi-million dollar

renovation. Park Plaza boasts 546,000 square feet of retail space, and houses

Abercrombie & Fitch, Aeropostale, ALDO, American Eagle Outfitters, Ann

Taylor, Banana Republic, Bath & Body Works, Coldwater Creek, Crabtree &

Evelyn, Dillard’s, Eddie Bauer, Gap, Gap Maternity, GapKids/Baby Gap,

Gymboree, XXI Lane Bryant, The Limited, Limited Too, Talbots, Talbots

Petites, Talbots Woman, Victoria’s Secret, and Zales. The mall’s specialty

stores enjoy sales of $470 per square foot, with total annual sales in the mid

eighty-million-dollar range. The site is also less than 2-miles from the

University of Arkansas-Little Rock (UALR) which has the 3rd largest student

population in the state.

MIDTOWN LITTLE ROCK

Midtown, where proximity is everything, has a population density of 3,074

people per square mile. Though northern and southern boundaries of the

neighborhood are less distinct, heavily traveled Mississippi and University

avenues generally are considered as western and eastern boundaries. H

Street and Evergreen drive are among the busier streets carrying traffic

between the two avenues. .

The Midtown district is home to one of the largest malls in Arkansas, Park

Plaza Mall, with a total GLA of 560,000 SF. In the Northwest corner of

University Avenue and Markham Street sits the Midtown shopping center

consisting of 150,000 SF of retail mix. Tenants at Midtown include the Pottery

Barn, Williams Sonoma, The Container Store, Cantina Laredo and Starbucks to

name a few.

What was once considered dead space across from Park Plaza Mall has now

been marked with a new beginning for the business district in this area, the

Park Avenue Development, a mixed-use development in the center of Little

Rock. This high-quality, 540,000 SF urban oasis provides a variety of

shopping experiences, eateries and luxury housing options. The open-air

lifestyle shopping center incorporated a 138,000 SF contemporary Target, a

number of high end retailers, restaurants, apartments and office space, all with

a main street feel. All three shopping centers are located at the crossroads of

University Avenue and Markham Street, and within the heart of Little Rock’s

midtown corridor near War Memorial Park & Stadium, University of Arkansas

for Medical Sciences campus, St. Vincent Health, the University of Arkansas at

Little Rock and the Little Rock Zoo.

Originally developed in the late 1940’s, Midtown was the suburb for many

members of the Greatest Generation who chose to build low-standing, ranch-

style homes in the hills west of Hillcrest. Though it lacks the community feel of

the Hillcrest area, there is much to offer in the Midtown area personally and professionally.

LITTLE ROCK, AR

Little Rock is the capital of Arkansas and a metropolitan statistical area with a

population of 666,401. The 11-county Metro Little Rock Alliance (MLRA)

population, representing a 50-mile radius surrounding Little Rock, has a

population of 967,789. Residents within the MLRA live within an hour’s drive of

Little Rock, where major industry sectors include the medical, service,

government and advanced manufacturing industries. Little Rock is located in

the center of the country and in the second fastest-growing region of the United

States, with 40% of the nation’s population and buying power within a 550mile

radius. Little Rock is where ‘America Comes Together’ – located at the

crossroad of Interstate 30 and the most heavily traveled Interstate in the nation,

Interstate 40. Competitive wages and Arkansas’ right-to-work environment

provide an excellent workforce environment for businesses. Twenty-eight

Fortune 500 companies operate within the Little Rock Metropolitan Statistical

Area. Little Rock was considered the nation's fourth strongest economy

(Business Week, October 22, 2009) during the most challenging economic

times. Further, at a 6.2 percent September unemployment rate, Little Rock

was the lowest in the Fed's Eighth District.

Centrally located, Little Rock is where the Southeast meets the Southwest, and

the delta becomes the mountains. Distances by highway to major nearby

cities, include: Dallas–307 Miles; Houston–443 miles; Oklahoma City–348

miles; Tulsa–288 miles; Kansas City– 405 miles; St. Louis 360 miles; Louisville

– 522 miles; Nashville – 360 miles; Atlanta – 523 miles; Memphis – 139 miles;

and New Orleans – 437 miles.

15

Location overview La fitness


16

Location map La fitness


17

Location map La fitness


http://www.bing.com/maps/?FORM=Z9LH2

DEMOGRAPHIC SNAPSHOT

18

Demographics La fitness


DOWNTOWN LITTLE ROCK, AR

PARK PLAZA MALL

Radius 1 Mile 3 Mile 5 Mile

Population:

2016 Projection 8,584 74,772 153,388

2011 Estimate 8,497 74,212 150,742

2010 Census 8,525 74,766 150,775

Growth 2011-2016 1.00% 0.80% 1.80%

Growth 2010-2011 -0.30% -0.70% 0.00%

Households:

2016 Projection 4,212 33,220 67,766

2011 Estimate 4,182 32,947 66,520

2010 Census 4,193 33,204 66,564

Growth 2011-2016 0.70% 0.80% 1.90%

Growth 2010-2011 -0.30% -0.80% -0.10%

Owner Occupied 2,323 17,458 34,239

Renter Occupied 1,859 15,489 32,281

2011 Avg Household Income $60,627 $62,234 $60,833

2011 Med Household Income $43,489 $41,857 $40,884

2011 Per Capita Income $30,672 $28,895 $27,701

2011 Households by Household Inc:

Income Less than $15,000 550 5,100 11,956

Income $15,000 - $24,999 554 4,440 8,803

Income $25,000 - $34,999 534 4,089 7,818

Income $35,000 - $49,999 702 5,256 9,899

Income $50,000 - $74,999 765 5,808 11,261

Income $75,000 - $99,999 393 2,885 5,984

Income $100,000 - $149,999 458 3,019 6,241

Income $150,000 - $199,999 124 998 2,056

Income $200,000+ 104 1,352 2,500

la fitness - exp realty advisors

Documents