Newmark Capital Markets announced today it is exclusively marketing for sale a single-tenant, two-story 42,685-square-foot 24 Hour Fitness Sport facility in Orange, CA. Located adjacent to Orange Center Tower within the Platinum Triangle submarket, the property is leased to 24 Hour Fitness under a recently extended long term, absolute net lease through 2027 with two, five-year options evidencing the tenant’s ongoing commitment to the trade area. The fully occupied property is being offered for $17.25 million representing a 5.7 percent CAP rate with a 5 year and 10 year average cash-on-cash return of approximately 7.72 percent and 7.5 percent respectively.
Built in 2001 and situated on approximately 0.6 acres at 3600 W. Orangewood Avenue, the property benefits from an irreplaceable location in the epicenter of Orange County along Interstate 5 and adjacent to Angel Stadium of Anaheim. The immediate area-known as the Platinum Triangle-is undergoing a transformation into a vast urban collection of homes, entertainment venues and business centers. The 820 acres stretches from the Anaheim Regional Transportation Intermodal Center (ARTIC) to Interstate 5. Once completed, the area will be home to more than 28,000 people.
With seven nearby residential and mixed-use development projects completed since 2007 consisting of over 4,431 units and an additional eleven development projects planned or under construction consisting of more than 4,680 units, the property is one of only three major fitness centers servicing this significant densification within the Platinum Triangle. It also benefits from more than 30 hotels and 1.9 million square feet of office product within the area (a total of 11 million square feet in all of Anaheim and Orange combined) and offers convenient access to the entire Southern California region as a whole via the 22, 5, 91 and 57 freeways.
“This investment offers a buyer a compelling opportunity to acquire a high exposure, high volume STNL asset with the industry-leading fitness user under a management-free, long-term absolute net lease at below estimated replacement cost,” said Rudy. “Additionally, this property offers a prime “Main & Main” location in an infill trade area within a leading Orange County submarket with unparalleled visibility and access to the single most trafficked freeway servicng Southern California.”
About Newmark Capital Markets
Newmark Capital Markets, operated by Newmark Group, Inc., is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, our 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, our strong foundation makes us one of the most trusted names in commercial real estate. We provide access to a wide range of services, including asset sales, sale leasebacks, mortgage and entity-level financing, equity raising, underwriting and due diligence. The transactions we broker involve vacant land, new real estate developments and existing buildings. We specialize in arranging financing for most types of value-added commercial real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, student housing, hotels, data center, healthcare, self-storage and special use. For further information, visit www.ngkf.com/capitalmarkets.
Newmark Group, Inc., which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.
Discussion of Forward-Looking Statements about Newmark Group, Inc.
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