INVESTMENT HIGHLIGHTS
8.2-YEAR LONG TERM LEASE
Fuel Fitness has 8.2 years remaining on an Absolute Net lease with 1, 5-year option, providing an investor with long-term, passive cash flow.
ABSOLUTE NET LEASE
The Property features an Absolute Net lease with ZERO Landlord management or repair responsibilities.
6.92% CAP RATE IN 2026
The Lease features a rent increase in July 2026 that will increase an investor’s unleveraged return to 6.92%, providing an investor with a long-term, high-yield investment.
HIGH-QUALITY 2016 CONSTRUCTION
The property was a build-to suit for Fuel Fitness in 2016 and features high quality finishes in both the exterior and interior of the building.
PERSONAL GUARANtee
The Lease features a Personal Guarantee from Fuel Fitness founder and successful entrepreneur, Michael Burks, which runs the entire firm lease term and any renewals.
1+ ACRE DEVELOPMENT SITE
The Property features 1+ acres of developable land to the rear of the property with an estimated value of $250,000, providing an investor with the option to short plat and sell the land or develop, lease, and collect income on the site themselves.
HIGH-TRAFFIC RETAIL LOCATION WITH EXCELLENT VISIBILITY
The Property is located directly on US Highway 2 W (16,000+ VPD), just off of US Highway 93 Alternate/Kalispell Bypass (21,000+ VPD), and benefits from its close proximity to Kalispell Center Mall (240,000 SF of retail) along with several other nearby national retailers and large hotels.
STRONG FITNESS SEGMENT GROWTH
New research from analytics firm Placer.ai shows that fitness centers by far led the pack in terms of 2022 foot traffic for retailers, with customer visits rising 29% from 2021 and 14.5% from pre-pandemic in 2019. In addition, fitness center memberships have risen 28% over the past 10 years with plenty of room for growth given approximately 75% of Americans do not currently have a gym membership, according to the International Health, Racquet and Sportsclub Association, a trade association serving the health club and fitness industry.
AFFLUENT, HIGH POPULATION GROWTH MARKET
Within a 5-mile radius, the population has grown nearly 24% since 2010 and is projected to increase by another 6% in the next 5 years, with average household incomes exceeding $72,000. Within a 1-mile radius, the population has grown by more than 26% since 2010.
Listing Agents:
CLAYTON J. BROWN
