24 Hour Fitness Super Sport
45ksf, $936k NOI, 7.5% Cap NNN Gym
Marketing description
NAI Elliott and NAI Puget Sound Properties, as exclusive advisor, is pleased to present the opportunity to acquire the fee simple interest in a NNN-leased, corporate-guaranteed, single-tenant fitness investment located in Vancouver, Washington.
The tenant, 24 Hour Fitness USA, LLC, occupies a purpose-built 45,000 SF Class A Super Sport facility under a lease affirmatively extended by Third Amendment in October 2022 — a direct signal of the tenant's long-term commitment to this location. The lease steps up to $78,000 per month in September 2026, coinciding with anticipated close. Three remaining five-year options each carry a contractual 10% rent increase, providing a compounding income runway through September 2043 and a self-executing path toward market rent alignment. Landlord responsibilities are limited to the roof, structure, exterior walls, and HVAC replacement — with the tenant bearing full responsibility for taxes, insurance, CAM, day-to-day HVAC maintenance, parking, and landscaping. With approximately 8,700 active members currently enrolled — surpassing pre-COVID levels — this location's operational depth makes relocation economically irrational, underpinning renewal probability and supporting long-term asset appreciation from a below-market rent basis.
Investment highlights
- Current rent of $70,000/month steps up contractually to $78,000/month in September 2026, coinciding with anticipated close; buyer acquires at the higher rate from day one, generating $936,000 in effective annual NOI
- Three remaining five-year options each carry a fixed 10% rent increase — no market rent resets, no arbitration, no uncertainty — growing NOI from $936,000 at close to a projected $1,245,816 annually by the third option term
- Rent was reset below its prior trajectory via a 2022 COVID restructuring amendment; today's below-market basis represents a clear and quantifiable appreciation story as the option schedule resets toward market over the life of the remaining term
- Tenant affirmatively executed the Third Amendment in October 2022 — extending their commitment rather than vacating — a direct signal of this location's strategic value within the 24 Hour Fitness regional portfolio
- Tenant responsible for taxes, insurance, CAM, day-to-day HVAC maintenance, parking lot, and landscaping — landlord obligations limited to roof, structure, exterior walls, and HVAC replacement
- 24 Hour Fitness operates three club formats — Active, Sport, and Super Sport. The Super Sport is the brand's flagship offering and the most amenity-intensive format in the portfolio
- This location's Super Sport designation includes an aquatic facility, basketball courts, racquetball courts, spa and sauna, group fitness studios, and expansive cardio and weight training floors — amenities that require a purpose-built, large-format building and cannot be replicated in standard retail inline space
- A basic Sport or Active club could theoretically relocate to a smaller, less expensive box. A Super Sport cannot — the format demands the square footage, the ceiling heights, the mechanical infrastructure, and the parking ratio that this building was specifically designed and built to accommodate
- There is no comparable Super Sport facility available within the trade area, further eliminating any viable relocation alternative
- Approximately 8,700 active members currently enrolled — surpassing pre-COVID enrollment levels and demonstrating full recovery and continued growth in the post-pandemic fitness market
- A membership base of 8,700 against a three-mile trade area of 43,009 households reflects meaningful community penetration today — with a submarket projected to add households at 3.4% annually through 2030, the captive addressable market continues to grow throughout the life of the remaining lease term and options
- High membership counts are self-reinforcing — members who have established routines, relationships, and class schedules at a specific location are highly resistant to disruption, creating a sticky revenue base that further disincentivizes tenant relocation
- The Orchards submarket of Vancouver, WA serves 121,325 residents across 43,009 households within three miles, with a median household income of $94,554 — demographics that index well above national averages for health club membership propensity and discretionary fitness spending
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