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• Freestanding Prototype LA Fitness
• Shadow Anchored By Target
• Superior Highway Visibility
• $110K Avg HH Income Within 1-Mile Radius
STOUGHTON, MA
STOUGHTON, MA
700+ LOCATIONS
BEST IN CLASS LA FITNESS ANCHOR
LA Fitness is one of the largest and fastest growing health club chains in the fitness industry with the highest total revenue. This freestanding, prototype building was built in 2011 and is the only fitness facility in the immediate area that offers full-service amenities.
LONG-TERM LA FITNESS LEASE
This corporate lease has built-in rent increases of 10% every five years, and with options the lease could extend through 2042, providing a secure cash flow for many years to come.
HIGHLY SOUGHT AFTER LOCATION
This strategic location within a lengthy retail corridor along both Route 139 and the Fall River Expressway, and is part of the Shoppes at Page Pointe, which includes a high performing TGI Fridays with $3.4M in sales annually and a high volume 144,000-square-foot Target with a Starbucks.
145,400 VPD TRAFFIC COUNTS
59,180TOTAL HOUSEHOLDSWithin 5-Miles
$110,630HH INCOMEWithin 1 Mile
$2.1 billion*TOTAL REVENUE 2017A 5.7% increase from 2016
158,214POPULATION Within 5-Miles
The NNN Fitness group of Marcus & Millichap is pleased to present this rare opportunity to purchase a freestanding LA Fitness located in Stoughton, MA in the Shoppes at Page Pointe. The fee-simple offering is a 45,000-square-foot state-of-the-art facility positioned just 20 minutes south of Boston at the dominant intersection of the Fall River Expressway and Route 139 with over 145,400 combined traffic counts and excellent signage and visibility. This location was built in 2011 and is being offered free and clear of existing debt, allowing investors to capitalize on low interest rates. This corporate lease has built-in rent increases of 10% every five years, and with options the lease could extend through 2042. This strategic location within a lengthy retail corridor along both Route 139 and the Fall River Expressway is part of the Shoppes at Page Pointe shopping center, which includes a high performing TGI Fridays with $3.4M in sales annually and a high volume 144,000-square-foot Target with a Starbucks. Other national retailers nearby include Kohls, Costco, IKEA, Home Depot, Petco, Outback Steakhouse, Subway, Bassett Home Furnishings, McDonalds, Chipotle, Wendy’s, and Dollar Tree. With limited alternative full-service health clubs in the immediate trade area and the superior location of Shoppes at Page Pointe, LA Fitness is strategically positioned to yield excellent membership numbers given the strong local demographics.
INVESTMENT OVERVIEW
Executive Summary | LA Fitness | 3 Hawes Way, Stoughton, MA Executive Summary | LA Fitness | 3 Hawes Way, Stoughton, MA
SUPERIOR HIGHWAY VISIBILITY & IDEAL LOCATION
At the crossroads of the Fall River Expressway (the area’s major highway) and Route 139, this LA Fitness is strategically and conveniently located with signage and visibility to around 145,400 vehicles per day from nearby roads.
DOMINANT RETAIL CORRIDOR
Shoppes at Page Pointe includes a high performing TGI Fridays with $3.4M in sales annually and a high volume 144,000-square-foot Target with a Starbucks. Other national retailers nearby include Kohls, Costco, IKEA, Home Depot, Petco, Outback Steakhouse, Subway, Bassett Home Furnishings, McDonalds, Chipotle, and Wendy’s.
OUTSTANDING DEMOGRAPHICS
Nearby prestigous residential communities account for an average household income of $110,630 within a one-mile radius of the property, with 158,214 people living within five miles.
Executive Summary | LA Fitness | 3 Hawes Way, Stoughton, MA
BASE RENT MONTHLY RENT ANNUAL RENT
Current $88,688 $1,064,250
Jun-22 $97,556 $1,170,675
Option 1: Jun-27 $107,312 $1,287,743
Option 2: Jun-32 $118,043 $1,416,517
Option 3: Jun-37 $129,847 $1,558,168
NET OPERATING INCOME $1,064,250
RENT PER SF $23.65
A N N U A L I Z E O P E R A T I N G D A T A
L E A S E S U M M A R Y
Lease Term 15 Years
Commencement Date 05/30/2012
Expiration Date 05/31/2027
Lease Type NN
Increases 10% Every 5 Years
Renewal Options (3) 5-Year Options
OFFERING SUMMARY
Executive Summary | LA Fitness | 3 Hawes Way, Stoughton, MA
$15,204,000 Offering Price
$337.87Price Per Square Foot
7.00%Cap Rate
$1,064,250Net Operating Income
4.37Acres
45,000 SFGross Leasable Area (GLA)
2011 Year Built
SITE PLAN
Property Description | LA Fitness | 3 Hawes Way, Stoughton, MA
SUBJECTPROPERTY
Walgreens
FALL RIVER EXPY - 115,426 VPD
139
McDonald’s
24
24
139
LINDELOF AVE. - 32,742 VPD
SUBJECTPROPERTY
Walgreens
FALL RIVER EXPY - 115,426 VPD
139
McDonald’s
24
24
139
LINDELOF AVE. - 32,742 VPD
#1 LA FITNESSIRVINE, CALIFORNIA
#2 // LIFE TIME FITNESS – CHANHASSEN, MINNESOTA
#3 // 24 FITNESS – SAN RAMON , CALIFORNIA
#4 // CLUBCORP – DALLAS, AZ
#5 // EQUINOX – NEW YORK, NEW YORK
#6 // TOWN SPORTS INTERNATIONAL HOLDINGS, INC – NEW YORK, NEW YORK
#7 // PLANET FITNESS – NEWINGTON, NEW HAMPSHIRE
#8 // THE BAY CLUB CO. – SAN FRANCISCO, CALIFORNIA
#9 // CAPITAL FITNESS INC. DBA XSPORTS FITNESS – BIG ROCK, ILLINOIS
#10 // CRUNCH – NEW YORK, NEW YORK
TOP GYMSIN THE UNITED STATES
Tenant Summary | LA Fitness | 3 Hawes Way, Stoughton, MA
700+LOCATIONS
ACROSS THE UNITED STATES & CANADA
Fitness International, LLC, known as LA Fitness, is the largest non-
franchised fitness club operator in the United States. Founded in 1984 and
headquartered in Irvine, Calif., LA Fitness is one of the fastest growing sports
club chains in the U.S., with more than 700 locations across the United States
and Canada. Club Industry estimates the company has annual revenue of
$2.1 billion. LA Fitness was also ranked #1 out of 100 in Club Industry’s Top
100 Health Clubs of 2018.
Their mission is to help as many people as possible achieve the benefits of
a healthy lifestyle by creating a nationwide network of sports clubs, offering
its members the widest range of amenities and the friendliest service at an
affordable price.
LA Fitness clubs offer state-of-the-art equipment and cardio areas, group
and specialty classes, indoor heated lap pools, whirlpool spas and saunas,
racquetball and basketball courts, full locker facilities, personal trainers, and
babysitting. The company also sells apparel for men and women, headgear,
bags, and other merchandise through their online store.
700+ LOCATIONS
$2.1 billion*TOTAL REVENUE 2017A 5.7% Increase From 2016
* Club Industry estimates the company has annual revenue of $2.1 billion.
Tenant Summary | LA Fitness | 3 Hawes Way, Stoughton, MA
LEASE SUMMARY
Tenant Trade Name LA Fitness
Lease Term Years
Lease Type NN
Roof & Structure Responsibility Landlord Responsible
Rent Commencement Date 06/2012
Lease Expiration Date 05/2027
Increases 10% Every 5 Years
Renewal Options (3) 5-Year Options
TENANT SUMMARY
Tenant Fitness International, LLC
Ownership Private
Annual Revenue $2.1 Billion
Number of Locations 700+
Headquarters Irvine, CA
Website www.lafitness.com
Fitness and health clubs have grown to be a more than a $30-billion-a-year industry, with more than 36,000 clubs across the U.S. boasting more than 60 million members.
The current environment appears to offer a perfect storm for the fitness center sector as consumers become more health-conscious and the economy continues to improve.
Fitness concepts are also more internet-resistant than traditional retailers—you can’t work out online.
The fact that neighborhood centers provide goods and services that are not purchased online is an important advantage, which is very attractive to both private and institutional investors.
INTERNET RESISTANT TENANT
The fitness club sector is maxing its muscles.
FITNESS INDUSTRY BYTHE NUMBERS
30Bhealth and fitness
industry in the U.S.
36,000 clubs across
the U.S.
20% of American adults have a fitness club
membership
3 - 4% annual growth for the last ten
years
60Mmembers
ACROSS THE U.S.
*Estimates per IHRSA & club industry
Tenant Summary | LA Fitness | 3 Hawes Way, Stoughton, MA
1 MILE
3 MILES
5 MILES
COMPETITION MAP
24/7 FAMILY FITNESS
YMCA
PLANET FITNESS
GOLD’S GYM
SUBJECT PROPERTY
1,845LOCATIONS
ACROSS THE UNITED STATES
Shadow-anchored by Target, this LA Fitness benefits from excellent daily
traffic generated by one of the country’s strongest retailers. The 144,000-
square-foot Target which opened in 2008 offers an onsite pharmacy, photo
center, and fresh groceries. Consumers enjoy covenient shopping year-
round in the two-level Target, which features parking on the first level
and merchandise on the second. The layout was designed by members of
Target’s specialty store designer team, whose unique vision was showcased
for the first time in Massachusetts at Shoppes at Page Pointe.
Target is a not just a nationally known brand, with 1,845 stores and 39
distribution centers in the United States, it also has global offices in China,
Hong Kong, and India and 350,000 team members worldwide. They fulfill
their Expect More. Pay Less.® brand promise by delivering outstanding
value, continuous innovation, and an exceptional guest experience. Target
remains committed to its legacy of responsible corporate citizenship, ethical
business practices, environmental stewardship and generous community
support. Since 1946, Target has given 5 percent of its profit to communities,
which today equals millions of dollars a week.
350,000 TEAM MEMBERS
$71.9 BILLIONTOTAL SALES 2017A 3.4% Increase From 2016
Tenant Summary | LA Fitness | 3 Hawes Way, Stoughton, MA
LOCATION SUMMARY
Tenant Trade Name Target
Square Footage 144,000
Open Date 2008
Levels 2
TENANT SUMMARY
Tenant Target Corporation
NYSE TGT
2017 Annual Sales $71.9B
Number of U.S. Locations 1,845
Number of Team Members Worldwide 350,000
Headquarters Minneapolis, MN
Website www.target.com
MARKET OVERVIEW
AREASTOUGHTON MA
Market Overview | LA Fitness | 3 Hawes Way, Stoughton, MA Market Overview| LA Fitness | 3 Hawes Way, Stoughton, MA
With limited alternative full-service health clubs in the immediate trade area and the superior location of the Shoppes at Page Pointe, LA Fitness is strategically positioned to yield excellent membership numbers given the strong local demographics. Although there are other fitness facilities located along Route 24, none offer the expansive features and amenities of LA Fitness which include state-of-the-art equipment, a pool, sauna, spa, daycare, basketball and racquetball courts, and juice bar. The only facility in the immediate area that offers comparable amenities is 24/7 Family Fitness, which is positioned in a far less desirable location minimizing the club’s membership base from a geographical perspective.
Located 20 minutes south of Boston, Stoughton, Massachusetts is part of
the Route 128 South retail submarket. This submarket consists of prestigious
residential communities, contributing to the area’s healthy shopping center
occupancy rate of 98.8% and providing direct access to regional highways including Route
128 (U.S. I-95), U.S. I-93 and U.S. I-495. The Route 128 submarket is one of the largest retail markets
in Massachusetts with over 10 million square feet of shopping center space and is home to a “who’s who”
of national retailers including Target, IKEA, Stop & Shop, Costco, The Home Depot, Jordan’s Furniture, Staples, Christmas Tree Shops, Bob’s Stores, Kohl’s, Bob’s Discount Furniture, La-Z-Boy, and Mattress Firm.
Nationally-renowned as one of the strongest real estate markets, the New England retail market is driven by its incredible fundamentals. In addition to the region’s excellent demographics, the New England area poses many barriers-to-entry which are both geographic and regulatory in nature. Inventory remains in-check and, perhaps more importantly, the combination of the region’s large population, high household incomes, and arduous barriers-to-entry ensure that this LA Fitness is well-positioned for the future.
DEMOGRAPHICS
G E N D E R
48.3%
51.7%
$110,630Average Household Income
within 1-Mile Radius
$342,171Median Housing Value within
3-Mile Radius
158,214To t a l P o p u l a t i o n
W i t h i n 5 - M i l e R a d i u s
59,180Total Households in
5-Mile Radius
Market Overview | LA Fitness | 3 Hawes Way, Stoughton, MA
POPULATION 1 Mile 3 Miles 5 Miles2023 Projection 3,095 63,068 162,081
2018 Estimate 2,931 61,726 158,214
2010 Census 2,230 58,254 149,074
Growth 2018-2023 5.60% 2.17% 2.44%
Growth 2010-2018 31.43% 5.96% 6.13%
HOUSEHOLDS 1 Mile 3 Miles 5 Miles2023 Projection 1,137 23,543 60,644
2018 Estimate 1,075 23,036 59,180
2010 Census 806 21,708 55,712
Growth 2018 - 2023 5.77% 2.20% 2.47%
Growth 2010 - 2018 33.37% 6.12% 6.22%
Owner Occupied 801 16,204 41,678
Renter Occupied 274 6,832 17,502
HOUSEHOLDS BY INCOME 1 Mile 3 Miles 5 Miles2018 Estimate 142 3,775 9,678
<$25,000 126 3,981 10,106
$25,000 - $50,000 195 4,212 9,951
$50,000 - $75,000 171 3,125 8,059
$75,000 - $100,000 94 2,199 5,918
$100,000 - $125,000 70 1,907 4,830
$125,000 - $150,000 149 1,930 5,284
$150,000 - $200,000 126 1,908 5,355
$200,000+
2018 Avg Household Income $110,630 $94,449 $97,417
2018 Med Household Income $85,745 $72,190 $74,638
Market Overview| LA Fitness | 3 Hawes Way, Stoughton, MA
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N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E
C O N F I D E N T I A L I T Y & D I S C L A I M E RThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only
by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written
consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective
purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute
for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation,
with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size
and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the
compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business
prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained
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will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters
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Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.
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The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by,
said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus &
Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Stoughton, MA
MARK THIELSENIOR MANAGING DIRECTOR INVESTMENTS
SAN DIEGOTel: (858) 373-3206Fax: (858) 373-3110
[email protected]: CA 01469342
EXCLUSIVELY LISTED BY
