CASE STUDY

ENDLESS FITNESS COMMERCIAL
MOORESVILLE, NC

After purchasing this asset with seller financing, a portion of the building was repositioned from a tanning salon to a training facility to complement the 24/7 portion of the gym. The project required $62,000 in capital expenditures, but created an amenity for the tenant (gym owner) while positioning the asset favorably to achieve market rents as the lease expires. At that time, rents will increase by at least 30%, growing the NOI and nearly doubling the value of the asset. 

CHALLENGES BEFORE ACQUISITION:

  • Outdated Tanning Salon 

  • Below Market Rents

VALUE PLAYS AFTER ACQUISITION:    

  • Bought Right by Finding Off Market Deal

  • Purchased Property with Creative Financing 

  • Repositioned Tanning Salon into Training Facility

  • Increased Rents to Market Rent as Leases Expired