March 7, 2019 – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has completed the sale of a single-tenant net-lease investment occupied by CircusTrix in the Boise, Idaho metro area. CircusTrix is the leading developer, operator and franchisor of indoor active recreation parks worldwide. CircusTrix facilities combine super trampoline arrays with “American Ninja”-like obstacle courses, foam pits, slackline and trapeze. The sale price could not be disclosed.
Hanley Investment Group Executive Vice President Eric Wohl, Senior Associate Austin Blodgett and Associate Andrew Cunningham represented the seller, RCG-Nampa, LLC of Atlanta. The buyer, an East Coast-based real estate investment trust was self-represented.
With a growing network of over 300 facilities worldwide—including brands like Sky Zone, Superfly, Rockin’ Jump and Ryze — CircusTrix is one of the world’s leading companies in the increasingly relevant “Experience Economy.” Known as the leading innovator in adrenaline, CircusTrix is constantly creating new facilities and attractions that provide intense physical activity, facilitate shareable social media posts, and bring thrill and delight to its worldwide fan base.
“With its acquisition of its largest competitor, Sky Zone, earlier in 2018, CircusTrix is now the largest and fastest-growing company in the indoor recreation industry with parks around the world that have become the training grounds for future American Ninja Warriors, traceurs and acrobats alike,” said Wohl.
“We procured an all-cash national REIT buyer, who is one of the largest owners of this property type,” said Wohl. “And, although we can’t disclose the sales price or the cap rate, it was a record-low cap rate for a single-tenant trampoline park located outside of California, which speaks to the quality of the location, lease terms and the financial strength of the tenant.”
Blodgett adds, “This is another great example of new retail product types coming to the open market place and our firm executing at a record price on something that had very few relevant comps. Over the last year, we have seen a large increase in internet-resistant retail product coming to the open market like trampoline parks or express car washes, which are becoming more appealing to individual investors, which were not seen as viable net-leased investments a few years ago.”
Wohl notes, “With the large rise in big-box vacancy over the last few years, trampoline parks have been able to secure low rents and heavy tenant improvement dollars as landlords look to fill these large spaces. As the shift to experiential retail continues, we will see more and more of this product type selling and we expect the cap rates to drive down as more sales comps become available.”
According to Cunningham, the Boise-Nampa Metro is the third largest metro in the Northwest with 30 percent growth projected by 2020 and ranked #1 in the Pacific U.S. for the lowest cost of living. Over 350,000 people with an average household income of $59,000 are located within a 5-mile radius of the property. The population situated within 3 miles of the property has grown over 40 percent since 2000.
CircusTrix is located at 1460 N. Happy Valley Road in Nampa, Idaho, along I-84 (80,000 cars per day) and Garrity Boulevard (32,000 cars per day), one of the busiest intersections in the Treasure Valley region. The property is also in close proximity to education and entertainment and benefits from its location near College of Western Idaho – Nampa (total enrollment 24,265), two regional sports arenas (Idaho Center and Ford Arena) and two 18-hole golf courses.
Wohl added, “Consumers’ continued interest in fitness and experiential is getting stronger by the day, and we expect that well-located, net-leased properties with corporate guarantees and long-term leases in this sector will continue to be in high demand.”