Description

Pegasus Investments Real Estate Advisory Inc., as exclusive advisor to the seller, is pleased to present the opportunity to acquire a newly developed Crunch Fitness property located within the highly active Midtown Square shopping center in Hesperia. Strategically positioned at the signalized intersection of Main Street and C Avenue, the property benefits from traffic counts exceeding 40,000 vehicles per day and serves as an anchor tenant within a dominant regional power center. Midtown Square is anchored by a top-performing Stater Bros. Market location ranked among the top 12% nationally according to Placer.ai, and is complemented by a strong lineup of national tenants including U.S. Bank, KFC, Jamba Juice, and Quick Quack Car Wash. The investment is secured by a brand-new 15-year lease with Fitness Ventures, one of the largest franchise operators within the Crunch Fitness system, currently operating 49 locations across 27 states. The lease structure offers attractive long-term income growth through 10% rent increases every five years during the initial term, along with two additional five-year extension options featuring above-market 12.5% rent escalations. The lease is further strengthened by an absolute and unconditional guaranty from the franchisee, providing investors with enhanced security and dependable cash flow. Crunch Fitness continues to demonstrate significant national momentum as a leading high-value, low-price fitness operator, opening 61 new locations in 2024 and 91 additional clubs in 2025, while targeting 100 new openings this year. The property showcases the company’s latest “Crunch 3.0” prototype design introduced following the brand surpassing 3 million systemwide members and was further recognized through inclusion on the 2025 Inc. 5000 list of America’s fastest-growing companies. The long-term investment fundamentals are supported by the rapid growth of Hesperia, which has evolved into one of Southern California’s emerging expansion markets with a population exceeding 100,000 residents and projections surpassing 175,000 by 2030. Major regional growth catalysts include the transformative Silverwood master-planned community, a 9,366-acre development expected to deliver more than 15,600 homes while generating substantial economic impact throughout the region. Additional infrastructure improvements such as the Interstate 15 express lane expansion and the future Brightline West station further position Hesperia as a critical transportation and economic corridor connecting Southern California and Las Vegas. Combining a new long-term lease, strong corporate franchise backing, attractive rent escalations, and a location within one of the region’s most dynamic growth corridors, this offering represents a premier net lease investment opportunity with exceptional long-term upside potential.