LA Fitness

Lowest
Cap Rate

6.00%

Lowest cap rate over past 24 months

Average
Cap Rate

6.75%

12 mo avg with 5+ yr lease term

Overview

LA Fitness properties are large-format facilities ranging from 35,000 to 50,000 square feet and typically sit on 3.0 to 5.0-acre parcels. These buildings often include indoor basketball courts, group exercise rooms, saunas, pools, and ample parking. Most leases are structured as 15- to 20-year absolute NNN, with 10% rent increases every 5 years, and are corporate guaranteed by Fitness International. Sites are often located in high-traffic suburban areas, frequently as part of power centers or adjacent to grocery anchors.

Average Property & Lease

Average Sale Price	$8,000,000 – $12,000,000
Average NOI	$500,000 – $850,000
Building SF	35,000
Lease Term	15 Years
Escalations	10% Every 5 Years
Stock Symbol	N/A

CREDIT RATING

S&P	N/A
Moody's	N/A

TENANT DESCRIPTION

LA Fitness was founded in 1984 in Los Angeles, California, as a single neighborhood gym and quickly expanded by capitalizing on the growing demand for large, full-service fitness centers. The company grew aggressively through both new developments and acquisitions, including Bally Total Fitness, 24 Hour Fitness locations, and others. LA Fitness now operates under Fitness International, LLC, which also owns Esporta Fitness and City Sports Club. The brand is privately held and one of the largest non-franchised fitness operators in the U.S.

Founded	1984
Headquarters	Irvine, CA, U.S.
Number of Locations	700
Revenue	$2.5 B
Company Website	https://www.lafitness.com
Key Principal	Chinyol Yi

LA Fitness

Lowest Cap Rate

6.00%

Average Cap Rate

6.75%

Overview

Average Property & Lease

CREDIT RATING

S&P

N/A

Moody's

N/A

TENANT DESCRIPTION

PROS

CONS

COMPANY QUICK STATS

Lowest
Cap Rate

Average
Cap Rate