We’re partnering with a national commercial real estate firm to identify and acquire the underlying real estate of gym locations. The locations are then leased back to the fitness operator on a long-term basis. We are interested in acquiring single-tenant properties for private, corporate, and franchised locations.
How does a sale-leaseback transaction work?
We will pay a negotiated amount for the real estate asset and then lease the premises back to the operator on a long-term basis. This provides the operator with freed-up capital while, at the same time, allowing them to continue to operate their business exactly as they always have.
What are the benefits of a sale-leaseback to a fitness center operator?
v Significant capital, previously tied up in the real estate, is freed up. These funds can be used for a wealth of purposes including fueling future growth, paying down debt, purchasing new equipment, and aiding in succession/buy-out scenarios.
v The fitness center’s business operations are entirely unaffected. A long-term lease will be executed at the closing of the real estate transaction, keeping complete control of the day-to-day operation of the business in the hands of the operator.
v As part of the overall sale-leaseback transaction, we can also finance remodeling costs, capital improvements, and building expansions.
Who are the ideal candidates for the initiative?
Ideal candidates will be operators wishing to free up the equity locked in their underlying real estate. Further, they will be seasoned operators of multiple facilities with aggressive growth plans. The initiative is most well-suited in circumstances where multiple transactions occur over time, with a symbiotic partnership evolving as a result.
Our Partner
Our partner is a U.S.-based commercial real estate investor, developer, and property manager focusing on single-tenant, net-leased properties. They provide 100% of the capital for each project they do, a significant portion of which is invested by their own internal team. In addition, they are comfortable and experienced doing projects anywhere in the United States.
If you would like to learn more about this initiative, please contact Jim Thomas at 214-629-7223 or jthomas@fmconsulting.net
An Outsourced CEO and expert witness, Jim Thomas is the founder and president of Fitness Management USA Inc., a management consulting, turnaround and brokerage firm specializing in the gym and sports industry. With more than 25 years of experience owning, operating and managing clubs of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully overcome obscurity, improve sales, build teamwork and market fitness programs and products. Visit his Web site at: www.fmconsulting.net or www.youtube.com/gymconsultant.
