Welcome to Grand Bend, Ontario. Home to the 3rd best beach in entire country according to Reader’s Digest, and also home to a stellar fitness centre facility that could not be more ideally located. Now for sale in Grand Bend is this 9000 square foot fitness centre occupied by a successful business now in its 15th year, surrounded by other popular businesses and populated towns that lack a proper gym. Did I mention that this location is only a 3 minute walk to that world class beach I was just going on about? You better believe that this geographical characteristic alone is one of the main reasons that this facility is home to a business (or future tenant for you) with hundreds upon hundreds of long-time members. Buy the fitness centre, sit back, and watch your money earn an easy 8% with a tenant that has never once been late on a rent payment. Interested yet? Let me give you a few more details as we tour the facility.
Presently, the business itself that occupies the fitness centre is not part of this listing, but the owner might be willing to sell if the right offer came along. It’s the facility that contains that fitness centre, owned by a separate entity, that I have listed for sale, and that also could potentially be the simplest and easiest property investment you’ve ever made and that’s what I have listed for sale here at 37 Ontario Street North in Grand Bend. The gym business, your tenant, is locked into a new three year lease, which ensures that you can simply purchase this facility and start collecting money on day 1 – with a respectable 8% cap rate. With $105,000 in gross rent and a net of just over $80,000, this is a property where the numbers work for you. It’s no wonder that it was just appraised by Valco Real Estate Appraisers in 2014 at 1,025,000. A pdf of this appraisal is available at grandbendbeach.com/fitnesscentre.
As we continue our tour through this well-kept facility, please note the following leasehold fixtures that come with the property:
- Piles of parking, not really a fixture but you need it
- The fully integrated sound system throughout the fitness centre, not cheap
- The Front Counter and other similar fixtures like all of those fitness mirrors, also not cheap
- 4 washrooms / changerooms full of plumbing fixtures
You’re not just buying a blank slate. As with any commercial property, anything attached to this building is included. This is a multi-purpose studio type facility useful for a variety of tenants in the future, with the current tenant already locked into a respectable lease including last month’s rent deposit + HST with condo fees and taxes paid over and above the rent. The lease also comes with personal guarantees of $40,000. The space is rented at $8.90 per square foot, which again, is a respectable number given that you could own this 9000 square foot facility for under a million bucks.
Bottom line, you are purchasing a property set up to be a fitness centre, and instead of also having to run the fitness centre, you are simply collecting rent from the current proprietor. As I mentioned though, a package deal for the facility and the actual business is not off the table. Regardless of how that pans out for any interested buyers, for the profit-minded real estate investor, you can simply purchase this facility for under a million bucks and watch your equity grow as the Grand Bend Fitness Centre business, now in their 15th successful year, continues to be a model tenant. It’s a no-brainer turn-key rental property. Even with a conservative model or worst case scenario for financing this purchase, the new owner should be taking home a minimum of $15,000 per year in pure profit. Private financing may be available to qualified buyers.
As we wrap up, I have a few final notes. This is a commercial condo, but in a building where the buyer could easily control the majority share. The 9 residential units above the gym, party to a different owner, are all fully leased and are also currently for sale. The residential units also come with a very respectable cap rate. For those interested in purchasing the whole building, more information on this is available at grandbendbeach.com/fitnesscentre.
I understand that a commercial purchase of this nature doesn’t typically happen overnight, and it’s for this reason that the seller hired me to facilitate this process. If your interest has been sparked due to how easily you could purchase this facility and immediately start collecting money, please call me any time at 519-870-7650 for a full consultation. Again, my name is Mike Sloan, and I’m here to help you make some money on this investment property. Let’s get you into this profit earning property, and I’ll see you at the beach!