$10,730,838

PRICE

1993

YEAR BUILT

5.25%

CAP RATE

22,000 SF

BUILDING SIZE

1.72 AC

LAND SIZE

24 Hour Fitness

22331 El Paseo | Rancho Santa Margarita, CA

The Offering

Marcus & Millichap is pleased to present a 24 Hour Fitness offering located in Rancho Santa Margarita, California. The subject property consists of 22,000 square feet situated on a 1.72-acre parcel in the master planned community of Rancho Santa Margarita. This location in RSM is home to a 1.6 Million square feet of retail in a one mile radius with only 2.7% of vacancy. Adjacent to the property are 4 institutional quality retail properties which include Plaza El Antonio, Plaza El Paseo, RSM Towne Centre, and Santa Margarita Marketplace, none of which offers a fully outfitted fitness facility.


Rancho Santa Margarita is a retailer’s bull’s eye where the demographic profile of the residents is some of the best in Orange County. The average and median household incomes within a 3-mile radius are $162,011 and $118,438 respectively with average home prices of $838,000. The average home ownership is 77% compared to the US average of 65%, and the post-secondary degree holder average is 70%, significantly higher than the US average of 25%. This area will continue to flourish as urban flight advances with more migration to suburbs and master planned communities like RSM.


24 Hour Fitness today is financially stronger than ever since discharging 1.2B in debt through a recent chapter 11 bankruptcy filing. This has allowed them to shed underperforming clubs and become financially profitable and stable. The investment today offers a secure income stream from a financially stronger tenant in a superb retail location. The investment is corporate guaranteed net lease, offering above market rental increases of 10%, 15.59% and 15.59% respectively in the option rent starting in 2025.

This offering today provides an excellent hedge against inflation in one of the best master-planned communities in Southern
California.

Investment Highlights

  • NNN Investment with Minimal LL Responsibilities
  • Fully Assumable Loan at 4.25% Interest Rate
  • Surrounded by Institutional-Quality Retail Properties: Plaza El Paseo, Plaza Antonio, RSM Town Centre, Santa Margarita Marketplace, with a combined 1.1 Million Visits Per Month, None of which offers a Fully Outfitted Fitness Facility
  • 10%, 15.59% and 15.59% Rental Increases Every 5 Years during Options starting 2025, Excellent Inflation Hedge
  • Retailer’s Bull’s Eye with One of the Best Demographics in Orange County: $162,011 3-mile AHHI, Median Age 37, Average Home Price $848,000,
  • 77% Home Ownership and 70% are Post-Secondary Degree Holder
  • 2nd Largest Fitness Chain in the US, Financially Stronger than Ever
  • Extremely Dense Submarket: 1.6 Million Square Feet of Retail within 1 Square Mile with only 2.7% Vacancy

Submit your information below to request the Offering Memorandum for this Property.




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