blink fitness queens, new york - constant...

B L I N K F I T N E S S

O F F E R I N G M E M O R A N D U M

Q U E E N S , N E W Y O R K

Marcus & Millichap is pleased to present this brand-new construction, Liberty Square retail property in Ozone Park (Queens), New York. The anchor tenant, Blink Fitness, occupies 15,500 square feet (8,000 square feet of the ground floor and all 7,500 square feet of the basement level). Blink has more than 14 years remaining on its original 15-year modified double-net (NN) lease, and has 12 percent rent increases every five years. Avanzar Smoothie and Juice Bar both signed 10-year modified double-net (NN) leases featuring annual rent increases over the base term. More Than 90 percent of the asset is backed by Blink Holdings, Incorporated, operator of 51 corporate fitness centers across the New York Area. Avanzar Smoothie and Juice Bar are backed by strong personal guarantees.

The subject property is situated on a hard corner at the intersection of Liberty Avenue and 103rd Street, which sees more than 18,000 vehicles per day (VPD). This asset sits on nearly a quarter of an acre with 9,500 square feet of air rights. This dense infill location has high barriers to entry with more than 88,900 residents in less than one mile.

Less than one-tenth of a mile west is the 104th Street-Oxford Avenue A-Line Station, which provides direct access to Brooklyn and Manhattan. Additionally, the asset is less than one mile from Resorts World Casino at Aqueduct Racetrack. The casino currently hosts more than 10 million guests annually. Additionally, the casino is undergoing a $400 Million expansion plan to develop a 400-room four-star hotel with five-star suites, retail, and restaurants. The subject property is also less than five miles from the busiest international airport in North America. John F Kennedy (JFK) International Airport sees more than 58 million passengers per year.

I N V E S T M E N T O V E R V I E W• New Construction Liberty Square in

Ozone Park (Queens), New York

• Tenants Feature Blink Fitness, Avanzar Smoothie, and Juice Bar

• Limited Landlord Responsibilities | Tenants Operating Under Modified Double-Net (NN) Leases

• Strong Rent Increases | Blink Has 12 Percent Rent Increases Every Five Years | Avanzar Smoothie and Juice Bar Feature Strong Annual Rental Increases

• More Than 90 Percent of Asset is Backed by Blink Holdings, Incorporated | Operator of More Than 50 Corporate Fitness Centers in the Northeast

• Hard Corner Location at the Intersection of Liberty Avenue and 103rd Street | More Than 18,000 Vehicles Per Day (VPD)

• Nearly a Quarter Acre With 9,500 Square Feet of Air Rights in the Dense Infill Neighborhood of Ozone Park | More Than 88,900 Residents in Less Than One Mile

• Less Than a Tenth of a Mile from 104th Street-Oxford Avenue A-Line Station | Direct Access to Brooklyn and Manhattan | “Walker’s Paradise” and “Excellent Transit” by Redfin

• Asset is Less Than One Mile from Resorts World Casino at Aqueduct Racetrack | 10 Million Guests Annually | $400 Million Expansion Project Featuring a 400-Room Four-Star Hotel With Five-Star Suites

• Less Than Five Miles from John F. Kennedy (JFK) International Airport | More Than 58 Million Passengers Annually

I N V E S T M E N T O V E R V I E W I N V E S T M E N T O V E R V I E W

JFK AIRPORT(More than 58M

Passengers Annual ly)

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0332179


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F I N A N C I A L O V E R V I E W

PRICE: $12,000,000

CAP RATE: 5.09%

NOI: $610,676

PRICE PER SQUARE FOOT: $697.67

RENT PER SQUARE FOOT: $36.58

YEAR BUILT: 2016

APPROXIMATE LOT SIZE: 0.22 Acres

GROSS LEASEABLE AREA: 17,200

TYPE OF OWNERSHIP: Fee Simple

L E A S E S U M M A R Y

F I N A N C I A L O V E R V I E W L E A S E S U M M A R Y

Base Rent $629,260

Expense Reimbursements

Real Estate Taxes* $2,517

Total Expense Reimbursements $2,517

Effective Gross Income $631,777

Expenses

Real Estate Taxes $14,360

Insurance $6,741

Total Expenses $21,101

Net Operating Income $610,676

*Blink is reimbursing 92% of Real Estate Taxes above the 2016-17 Base Year. Avanzar Smoothie and Juice Bar are reimbursing based on their Pro Rata Share of Ground Floor Gross Leaseable Area, 10.31% and 7.22% respectively. Total Ground Floor Gross Leasable Area is 9,700 square feet. Blink Occupies 8,000 square feet of Ground Floor Gross Leasable Area and is the only tenant to occupy 7,500 square feet of the basement level.

Tenant Guarantor GLA % of GLALease

CommenceLease Expire

Term Remaining

Annual Rent

Rent-(PSF)

Increases Lease TypeRenewal Options

BLINK FITNESSBlink Holdings, Incorporated

15,500 90.12% 9/8/2016 9/30/2031 14 Years $550,000 $35.48 12% Every 5 Years Modified NN 2, 5-Year

AVANZAR SMOOTHIE Personal Guarantee 1,000 5.81% 11/15/2016 11/14/2026 9 Years $43,260 $43.26 Annually Modified NN 1, 5-Year

JUICE BAR** Personal Guarantee 700 4.07% TBD TBD TBD $36,000 $51.43 TBD Modified NN TBD

Total 17,200 100.00% $629,260

TENANT SUMMARY

** Pending Lease



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Founded in 2011, Blink is known for its signature Mood Above Muscle philosophy, which celebrates the positive emotions generated by exercise as opposed to solely focusing on physical benefits. The clubs’ Feel Good Experience brings this philosophy to life through five key areas Blink has identified as essential to a great member experience, and that differentiate Blink from other fitness clubs. First, members are always greeted with enthusiasm and treated with respect. Second, their “Everyone Cleans” philosophy ensures that the gyms are always spotless. Third, clubs are painted colors that are proven to have a positive effect on mood and are designed to be open, spacious and bright. Fourth, they play music that is specifically selected to keep members energized throughout their workout, and fifth, their training programs are designed to be motivating and affordable. Memberships start at $15 per month.

The brand’s EBITDA “grew sevenfold” between 2015 and 2016, according to data provided to Club Industry and total memberships have tripled since 2013.

Blink Fitness is planning to have 300 clubs by 2021 through both corporate- and franchise-based expansions. The six-year-old brand currently operates more than 50 locations and approximately 20 locations are under development. Blink currently has more than 300,000 members

TENANT PROFILE

TENANT TRADE NAME Blink Fitness

OWNERSHIP Private

TENANT Blink Liberty Avenue, Incorporated

LEASE GUARANTOR Blink Holdings, Incorporated

NUMBER OF LOCATIONS 51

HEADQUARTERED New York, New York

WEB SITE https://www.blinkfitness.com/

MEMBERS 300,000+

T E N A N T O V E R V I E W - B L I N K F I T N E S S

T E N A N T O V E R V I E W

D E M O G R A P H I C S

D E M O G R A P H I C S

1-Mile 2-Mile 3-Mile

P O P U L AT I O N2000 Population 95,557 329,587 602,779

2010 Population 95,472 330,885 611,828

2017 Population 88,960 318,275 613,335

2022 Population 90,244 324,775 630,732


H O U S E H O L D S


H O U S E H O L D ( H H ) I N C O M E S

2000 Households 29,145 103,592 200,518

2010 Households 28,324 102,719 202,823

2017 Households 25,959 98,387 204,128

2022 Households 26,240 100,293 210,051

2017 Average HH Income $81,471 $78,105 $78,629

2017 Median HH Income $63,928 $60,457 $59,589

2017 Per Capita Income $23,774 $24,144 $26,169



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Queens is the easternmost and largest in area of the five boroughs of New York City. It is geographically adjacent to the Brooklyn at the southwestern end of Long Island, and to Nassau County farther east on Long Island. Additionally, Queens shares water borders with the boroughs of Manhattan and the Bronx. It is the second-largest in population (after Brooklyn), with a census-estimated 2,333,054 residents in 2016.

Queens is the second-largest and most diverse economy of New York City’s five boroughs with occupations spread relatively evenly across the health care, retail trade, manufacturing, construction, transportation, and film and television production. The diversification in Queens’ economy is reflected in the large amount of employment in the export-oriented portions of its economy such as transportation, manufacturing, and business services. Queens is home to two of the three major New York City area airports: John F. Kennedy (JFK) International Airport and LaGuardia Airport. These airports are among the busiest in the world, making the airspace above Queens the most congested in the country. The airline industry provides almost one quarter of the sector’s employment and more than 30 percent of the sector’s wages.

The village of Lincolnshire holds an annual summer festival; The Taste of Lincolnshire features and advertises “taste-size” samples of local restaurants and provides local entertainment, including musicians, a raffle, and a local pet show. Since 1993, Lincolnshire

A B O U T Q U E E N S , N E W Y O R K

Q U E E N S , N E W Y O R K | O Z O N E P A R K

Queens is the easternmost and largest in area of the five boroughs of New York City. It is geographically adjacent to the Brooklyn at the southwestern

end of Long Island, and to Nassau County farther east on Long Island. Additionally, Queens shares water borders with the boroughs of Manhattan and the Bronx. It is the second-largest in population (after Brooklyn), with a

census-estimated 2,333,054 residents in 2016.

Queens is the second-largest and most diverse economy of New York City’s five boroughs with occupations spread relatively evenly across the health care, retail trade, manufacturing, construction, transportation, and film and television production. The diversification in Queens’ economy is reflected

in the large amount of employment in the export-oriented portions of its economy such as transportation, manufacturing, and business services.

Queens is home to two of the three major New York City area airports: John F. Kennedy (JFK) International Airport and LaGuardia Airport. These airports

are among the busiest in the world, making the airspace above Queens the most congested in the country. The airline industry provides almost one

quarter of the sector’s employment and more than 30 percent of the sector’s wages.

A B O U T O Z O N E P A R K


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MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS:

The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .

As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.

Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .

Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .

L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.

By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.

B R O K E R O F R E C O R D : J D PA R K E R | M A R C U S & M I L L I C H A P | N E W Y O R K , N Y | L I C E N S E : 3 1 PA 1 1 5 9 7 4 2

1 0 2 - 1 6 L I B E R T Y A V E , O Z O N E P A R K , N E W Y O R K 1 1 4 1 6

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