24 Hour Fitness
10011 Broadway
Pearland, TX
$5,295,000

The subject property is the investment in a new 24 Hour Fitness facility located in the wealthy Houston suburb of Pearland, Texas. The surrounding area has a huge concentration of new retail, developed over the past 2-3 years, with superior visibility and access. The property is located in the Pearland Fitness Center (Tutor Time, Whitney Bank, Advance Auto Parts, TCBY, Pearland Super Buffet, Planet Beach, and On the Run). This 24 Hour Fitness facility is one of the new “Shaq Sports Clubs,” a partnership with 24 Hour Fitness USA and basketball marvel Shaquille O’Neal. Shaq signed on to create a chain of uniquely branded clubs and to be a new face for 24 Hour Fitness print and TV advertising. The new Shaq-sized clubs come complete with Shaq-sized amenities (Basketball Court, Cardio Equipment, Circuit Training, Coin Collect Lockers, Free Weights, Group Cycling, Group X, Kids’ Club, Pool, Pro Shop, Racquetball Court, Sauna, Solutions, Spa, Steam Room, & Whirlpool) in the clubs and locker rooms. The site is adjacent to Silverlake Village Shopping Center (SuperTarget, Kohl’s, Ross Dress For Less, Marshall’s, Linens ‘n Things, Pier 1 Imports, Randalls, Circuit City, Petsmart, Michaels, Office Depot, and Cinemark Theaters) and the Crossings Shopping Center (Wal-Mart Supercenter, JC Penney, Home Depot, Bed Bath & Beyond, Best Buy, TGI Friday’s, Olive Garden, Chick-fil-A, and Sonic Drive-In). Across Highway 288 is the Pearland Town Center (Dillard’s, Macy’s, Barnes & Noble, 300,00 sq ft of speciality shops & restaurants, residential space, office space, hotels, and exciting entertainment venues) and Shadow Creek Ranch (a master-planned community offering several schools, hospitals, churches, day cares, all forms of housing from single-family, multi-family, and senior living. Traffic generators in the area also include HEB Grocery, Academy Sports + Outdoors, Hobby Lobby, Ashley Furniture, and Memorial Herman Hospital.

Tenant: 24 Hour Fitness US, Inc.
24 Hour Fitness Worldwide, the world’s largest privately owned and operated fitness center chain, began as a one-club operation in 1983. From the start, 24 Hour Fitness Worldwide Chairman and visionary, Mark S. Mastrov, had a vision to make fitness a way of life by creating the ultimate in multi-sport fitness centers and making them affordable and accessible to people of all abilities and fitness levels.

In 2004, 24 Hour Fitness was ranked #1 in Club Industry’s Top 100 list. 24 Hour Fitness also had a remarkable showing making the Forbes Top 500 Largest Private Company List in 2000, 2001, 2002 and 2005.

In May 2005, 24 Hour Fitness entered a partnership with the New York-based private equity firm Forstmann Little & Co. The $1.6 billion acquisition affirmed 24 Hour Fitness’ reputation as a leader in the fitness industry and gave Mastrov the capabilities to lead 24 Hour Fitness on a continued path of rapid growth and expansion.