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24228250

Southern MN Gym

Murphy Business of Southeast Minnesota -  Petersen
Listed by Murphy Business of Southeast Minnesota - Petersen
$2,200,000
373 days on market
Updated 3 days ago
Details
Property Type Special Purpose, Business for Sale
Sub Type Business and Building, Fitness Gym
Square Footage 6,500
Net Rentable (SqFt) 6,500
Units 1
Cap Rate 18.82%
NOI $414,000
Occupancy 100%
Tenancy Single
Pro-Forma Cap Rate 18.82%
Pro-Forma NOI $414,000
Price per SqFt $338
Class A
Year Built 2015
Buildings 1
Stories 1
Acreage 0.500
Zoning Special
Parking Spaces 25 spaces
Parking per 1,000 SqFt 3.85
Investment Type Owner/User
Tenant Credit No Credit Rating
Ground Lease No
Ownership Owner/Operator

Great Cashflow Lifestyle Business

Marketing description

This offering is a unique opportunity to acquire a modern indoor fitness and recreational facility located in a stable and growing Midwestern community. The area is characterized by a strong private sector and a demonstrated interest in health, wellness, and outdoor recreation. The business currently serves a membership base exceeding 600 individuals and facilitates over 60,000 customer visits annually. Its diverse clientele includes families, youth, individuals, and active older adults, with programs tailored for all ages and abilities, including adaptive offerings.

For sale is a premier gym located in Southern Minnesota. This turn-key business comes complete with a loyal and established clientele and brand along with the privilege of being a staple in its community.

With an established workforce and part time owners, this business is well suited for various types of buyers.

The real estate along with all assets needed to run the operation are included in the asking price.

Investment highlights

  • Products and Services
  • Key services provided include diverse indoor recreational activities for various group sizes, comprehensive youth and adult programming, specialized fitness classes, and a well-equipped training area. Additional amenities enhance the customer experience, such as numerous automated safety systems, advanced training apparatus, and an on-site pro-shop offering merchandise and gear. The revenue model is robust, with membership fees and day use accounting for the largest share of income, further diversified by youth programs, group events, and retail sales.
  • Sales and Marketing
  • Marketing efforts are predominantly organic, relying on word of mouth and social media (Facebook & Instagram). It effectively engages a broad customer base through an email newsletter with strong engagement, and strategic local advertising in visitor guides. Furthermore, it actively builds community by contributing to local organizations and hosting free events, which generates positive publicity and reinforces its reputation for excellent customer experience and professional staff.
  • Competition/Industry
  • The business operates in an expanding, fragmented market, where new facility development intensifies competition, risking diluted memberships and higher marketing costs. However, this business holds a significant competitive advantage as the sole specialized indoor recreational and fitness facility within a substantial regional radius, uniquely serving as a fitness and entertainment venue. While facing indirect competition from other local fitness, entertainment options, and at-home substitutes, its success is driven by diversified offerings, strong community engagement, and exceptional customer experiences, making its organic marketing highly effective.
  • Employees
  • The business maintains a streamlined operational structure, relying on Supervisors who manage most day-to-day activities, allowing the owners minimal direct involvement. Recruitment of staff is strong, frequently drawing unsolicited applications, though initial training for new hires is essential. The business prioritizes competitive compensation fostering a professional and knowledgeable team. This committed workforce, combined with an emphasis on outstanding customer service, is considered the primary competitive advantage and most valuable asset of the establishment.

Listing Contacts

Murphy Business of Southeast Minnesota -  Petersen
Listed by Murphy Business of Southeast Minnesota - Petersen

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Loan Amount
$0.00
Annual Debt Service
$--
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Annual Cash Flow
$414,000.00
$34,500.00/mo

Valuation Metrics

0
DSCR
18.82%
Cap Rate
18.82%
ROI

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