HFF, on behalf of an undisclosed owner, is marketing for sale the fee-simple interest in a 32,000-square-foot LA Fitness in San Bernardino, California. HFF was unable to release the asking price, but sources unrelated to the deal tell SoCal Real Estate that the asking price is $10.6 million with a 5.70 cap rate.
The property consists of a brand-new building occupied by LA Fitness, which signed a 10-year triple net lease that features 5 percent rent increases every five years with four five-year options. The retail building for sale is located within a larger shopping center that features national brands, including Ralphs, Del Taco, Carl’s Jr., KFC, Subway, AT&T and Weinerschnitzel.
Situated on 2.10 acres at 4404 University Parkway near Interstate 215, the LA Fitness property is on University Parkway, which has more than 47,000 vehicles per day. Additionally, the retail building is less than one mile from California State University, San Bernardino.
The 32,000-square-foot property was completed in early 2018 with cutting-edge construction. The single-tenant, NNN property has no landlord responsibilities or management requirements. HFF emphasizes that the property represents an opportunity for an investor to acquire a newly constructed, single-tenant gym facility in Southern California near a large university.