Montrose Shopping Center - Gold's Gym / Dollar General
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Montrose Shopping Center – Gold’s Gym / Dollar General Offering Memorandum
$6,284,027 | Investment Details
❖ Located in the Heart of Montrose, Colorado
❖ Two Tenant Center – 100% Occupied
❖ Gold’s Gym to Sign a New 15 Year Lease Upon
COE
❖ Gold’s Has Occupied the Site For 10 Years and
Wishes to Extend Their Presence Thru 2032 by
Executing a New Lease, Showing Dedication to
the Region
❖ Gold’s Gym Has 2,901 Members at This Location
With Sales Exceeding $1,517,942 Annually
($523.24 Per Member)
❖ Site Was Remodeled in 2013
❖ NNN Leases – All CAM’s Pass Through to Tenants
❖ Strong Growth Area – Local Population Increased
by over 33% since 2000
❖ Traffic Count Exceeds 17,000 Vehicles Passing in
Actual Site Photo
Front of Site Daily
TENANT OVERVIEW
Tenant Snapshot Company Profile
Tenant Trade Name Gold’s Gym
Gold’s Gym stared moderately 52+ years ago when they opened their first
fitness center in Venice Beach, CA and began a tradition of passion and Ownership Private - TRT Holdings is Parent Company
dedication to physical fitness at more than 700 +/- locations across the Site Operator Franchised 5 Unit Operator
globe.
Revenue $147 Million
Located in 30 countries and 40 states, Gold’s Gym has assisted patrons in Lease Guarantor Corporate
achieving their personal physical fitness goals in strength and endurance. No. of Locations 700+
Gold’s Gym’s mantra is “ Know Your Own Strength”.
No. of Employees 30,000+
Gold’s Gym is an American chain of international co-ed fitness centers. Each Headquarters Dallas, Texas
location features an array of exercise equipment, group exercise classes and
Website www.Goldsgym.com
personal trainers.
Gold’s Gym was purchased by Robert Rowling’s TRT Holdings in 2004 for Gold’s Gym Accelerates growth and Innovation in
approximately $158(Mil). TRT also owns the Omni Hotel chain. TRT Holdings Strong 2016: http://www.prnewswire.com/news-releases/golds-gym-
net worth is approximately $6.7(Bil) as of May 2017. accelerates-growth-and-innovation-in-strong-2016-300377323.html
About the Franchisee:
Utah Limited Liability Company based out of Sandy, Utah. Cascade Fitness was
700+
formed for the ownership and operation of Gold's Gym locations in south eastern
Washington State. They currently own and operate Gold's Gym's in Kennewick, $6.7 Million
WA, and 2 gyms in western Colorado. They have also developed and constructed
Locations over 21 Gym's for other operators throughout the US. It is a joint venture of Parent Co Net Worth
Bingham Family Alaska LLC
TENANT OVERVIEW Corporate Snap Shot Gold's Gym International, Inc. operates a chain of fitness gyms in the United States and internationally. It offers group exercise programs, including Zumba, yoga, group cycling, mixed martial arts, muscle endurance training, and Pilates. The company also provides services in the areas of strength training/cardio, diet and nutrition, fitness related medical information, celebrity training, sports training, senior fitness, youth fitness, pre- and post-natal, motivation, diabetes, obesity, sports psychology, and stretching exercises. In addition, it engages in franchising gyms. Gold's Gym International, Inc. was formerly known as Gold's Gym Enterprises, Inc. The company was founded in 1965 and is based in Dallas, Texas. As of July 21, 2004, Gold's Gym International, Inc. operates as a subsidiary of TRT Holdings, Inc. Today, Gold’s Gym serves more than 3 million members through over 720 gyms in 38 states and 26 countries around the world. Franchise opportunities for gyms – estimated investment level ranges between $1.1-$3.9 million depending on size amenities and location. 30% of all franchisees own more than one unit.
TENANT OVERVIEW
Tenant Snapshot
With 13,601 discount stores in more than 40
states, primarily in the south, eastern, Midwest,
and southwest US, this number 1 ranked retailer
thrives off of the crumbs of mega discounter
Walmart. They offer mostly basic household
products, food and discounted products. Most
products sell for less than $1. Ranked 164th in
Fortune 500, Standard & Poor’s BBB – rated, and
does approximately $20.369(Bil) in annual sales
with an average annual growth of 8.03 percent.
13,600+ Standard & Poor’s $20.369 Billion
Locations “BBB“ Rated Revenue
TENANT OVERVIEW
Dollar General Company
Profile
Tenant Trade Dollar General
Name
Ownership NYSE:DG
Revenue $20.369 Billion
Lease Corporate
Guarantor
No. of 13,600+
Locations
No. of 120,000+
Employees
Headquarters Goodlettsville, TN
Website www.Dollargeneral.com
13,600+ Standard & Poor’s $20.369 Billion
Locations “BBB“ Rated Revenue
FLOOR PLAN – GOLD’S GYM
LEASE ABSTRACTS Lease Abstract Lease Type Modified NNN Fee Simple Lease Term New 15 Year Lease Start COE Lease Expiration (estimate) COE + 15 Years Renewal Options (estimate) 3x5 Increases 1.50% annually Roof and Structure Tenant Responsible Lease Abstract Lease Type NNN Fee Simple Lease Term 10 Years Lease Start (estimate) 10/30/2006 Lease Expiration (estimate) 3/31/2019 Renewal Options 3x5 Increases In option periods Roof and Structure Tenant Responsible
THE OFFERING – GOLD’S GYM & Dollar General Center
Overview Dollar
Rental Lease General Gold's Gym Combined
Price (Combined) $6,284,027 Time Periods* Year Years Annual Rent Annual Rent Rents
BTG/BTDG 1 2017 $69,300 $386,292 $455,592
Gross Leasable Area (Estimate) 42,094 SF Combined
BTG/BTDG 2 2018 $69,300 $392,086 $461,386
(32,191 SF Gold’s & 9,903 SF DG)
BTG/BTDG 3 2019 $69,300 $397,968 $467,268
Lot Size (Acres) 3.15
BTG/Opt1DG 4 2020 $79,014 $403,937 $482,951
Year Built / Renovated 1974 / 1988 / 2013 BTG/Opt1DG 5 2021 $79,014 $409,996 $489,010
Net Operating Income (Combined) $455,592 BTG/Opt1DG 6 2022 $79,014 $416,146 $495,160
BTG/Opt1DG 7 2023 $79,014 $422,388 $501,402
CAP Rate (Combined) 7.25%
BTG/Opt1DG 8 2024 $79,014 $428,724 $507,738
Expenses BTG/Opt2DG 9 2025 $86,904 $435,155 $522,059
All CAM’s pass thru to Tenant Expense Break down available upon request BTG/Opt2DG 10 2026 $86,904 $441,682 $528,586
BTG/Opt2DG 11 2027 $86,904 $448,308 $535,212
RE Taxes (City of Montrose) $3,697.05
BTG/Opt2DG 12 2028 $86,904 $455,032 $541,936
Insurance 74.00
BTG/Opt2DG 13 2029 $86,904 $461,858 $548,762
Utilities $4,566.11
BTG/Opt3DG 14 2030 $95,592 $468,786 $564,378
Repairs & Maintenance (May vary) $352.45 BTG/Opt3DG 15 2031 $95,592 $475,817 $571,409
Snow Removal $500.00 Opt1G/Opt3DG 16 2032 $95,592 $482,955 $578,547
Waste Management $1,231.87 Opt1G/Opt3DG 17 2033 $95,592 $490,199 $585,791
Opt1G/Opt3DG 18 2034 $95,592 $497,552 $593,144
Management Fee (subject to owner’s request) $7,000.00
Time Periods*
Total Expenses $17,421.48 BTG = Base term Gold’s Gym (estimated on new lease)
BTDG = Base term Dollar General
Opt = Option periods
San Juan Cinemas
Montrose, Colorado Population 1-Mile 3-Mile 5-Mile
Montrose, Colorado, sitting at the base of the picturesque Gunnison Gorge National Park, is 2010 5,589 21,726 27,312
named after Sir Walter. Scott's novel A Legend of Montrose.
2016 5,497 21,280 26,753
Montrose has been an agricultural hub for generations since its founding in 1882. Today, the 2019 5,881 22,558 28,829
Black Canyon canal which winds its way thru Montrose is used for recreation and kayaking.
Montrose located along Route 50 is just south of Grand Junction, and south west of Denver,
Colorado off the I-70, situated just north of the New Mexico border.
The Montrose Center is home to two tenants: Dollar General and Gold's Gym. Newly renovated
2016 1-Mile 3-Mile 5-Mile
in 2013 and centrally located these two tenants are some of the only few nationally known
Household
retailers in the County as the region tries to preserve its "old" town community feel. Directly
adjacent to the site and sharing ingress/egress are a Driver's Education School, a Mexican Incomes
restaurant, and Ted Nelson's Steakhouse. Average $54,333 $57,070 $58,610
The leases are modified NNN in nature with all expenses being passed through to the tenants. Median $42,314 $43,583 $44,613
Retailers in the area include: a Kawasaki, Suzuki, Yamaha, Buick, GMC and Toyota dealerships,
Blair's truck stop, a Cinema, Best Western, Super 8, Motel 6, Arby's, Days Inn, Goodyear,
Country Lodge, a Bowling Alley, Alpine Bank a Shell Station and the Montrose
Memorial Hospital. The fairgrounds and the Chamber of Commerce are also in the immediate
area.Confidentiality Agreement Net Leased Disclaimer
The information contained in the following Marketing Brochure is proprietary and strictly Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:
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 The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable.
Marcus & Millichap. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap
conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or
representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a
This Marketing Brochure has been prepared to provide summary, unverified information to
net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of
prospective purchasers, and to establish only a preliminary level of interest in the subject all material information before completing any purchase. This Marketing Brochure is not a substitute for your
property. The information contained herein is not a substitute for a thorough due diligence thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions,
representation, with respect to the income or expenses for the subject property, the future assumptions or estimates used in this Marketing Brochure are for example only and do not represent the
projected financial performance of the property, the size and square footage of the property and current or future performance of this property. The value of a net leased property to you depends on factors
improvements, the presence or absence of contaminating substances, PCB's or asbestos, the that should be evaluated by you and your tax, financial and legal advisors.
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 Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent
intentions to continue its occupancy of the subject property. The information contained in this investigation of any net leased property to determine to your satisfaction with the suitability of the property for
your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal
Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus &
and financial advisors must request and carefully review all legal and financial documents related to the
Millichap has not verified, and will not verify, any of the information contained herein, nor has
property and tenant. While the tenant’s past performance at this or other locations is an important
Marcus & Millichap conducted any investigation regarding these matters and makes no warranty consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including
or representation whatsoever regarding the accuracy or completeness of the information newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with
provided. All potential buyers must take appropriate measures to verify all of the information little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the
set forth herein. tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other
material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic,
environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for
conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of
any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should
default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential
replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of
the property.
By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services
and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or
purchase of this net leased property.Montrose Shopping Center – Gold’s Gym / Dollar General EXCLUSIVELY REPRESENTED BY: Lior Regenstreif Senior Managing Director Investments Senior Director Net Leased Properties Group 16830 Ventura Blvd., Suite 100 Encino, CA 91436 818.907.9525 Direct E-mail: Lior.Regenstreif@MarcusMillichap.com
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