HESPERIA – Planet Fitness, constructed in 2021, is available for purchase with a 15 year absolute net lease for $5 Million. The absolute net lease agreement allows the owner to collect an annual $314,500 net operating income while Planet Fitness will be responsible for all property related expenses including the rent, taxes, insurance, and building maintenance.
The Planet Fitness is located at 18683 Bear Valley Rd in Hesperia. According to the listing real estate company Highland Partner, the property sits on a 1.56 acre out lot next to an Aldi, AutoZone, Wendy’s and Quick Quack Car Wash. The 15 year lease agreement allows for a 10% rent increase every 5 years and two 5-year options to extend the lease.
Absolute net leases require absolutely no landlord responsibility for expenses, making them highly attractive to investors who desire a truly passive income stream. While other expense structures require the landlord to pay for some or all the building expenses, absolute net leases require the tenant to pay these expenses directly.
Planet Fitness, founded in 2009, is an American franchisor and operator of fitness centers based in Hampton, New Hampshire. According to the company, there are 2,039 clubs with an estimated 10 million members across 50 states.
The property area, located near Victor Valley College, has a daytime population of 34,485. Hesperia has experienced growth over the last decade with the population increasing over 10% since 2010 and a 35% increase in single-family residential permits issued by the city last year.
A typical commercial loan requires at least a 20% – 35% downpayment in order to qualify for the purchase of a property.
For more information about the purchase of the net lease Planet Fitness visit https://www.costar.com/article/1454990598/rich-development-sells-hesperia-retail-building