UFC Gym at Main Street Village, its second club location in Corona, created buzz in the fitness world when it celebrated its grand opening in January. But more significantly, the addition of this 24/7 gym has sparked new life into a neighborhood shopping center now enjoying near 100% occupancy.
Main Street Village went into default mid-recession, suffering from uncollected rents that led to significant vacancies. By 2013 when it was put in the hands of special servicer C-III Asset Management, the property was 65% vacant.
With the goal of stabilizing the asset for an eventual sale, Coreland’s brokerage team of Ben Terry and Matt Hammond implemented an aggressive marketing strategy focused on finding a 10,000-square-foot anchor. The property’s revitalization was dependent on filling this space, formerly occupied by 24-Hour Fitness.
“Our main challenge was that this was an oddly-sized space – not quite the size of a junior anchor but much larger than traditional shop space,” said Terry, Coreland Senior Associate. “We began to target popular regional gyms that fit the footprint because we knew a club could immediately enhance the vitality of the shopping center.
“UFC had a very successful site just five miles away and, having recently acquired LA Boxing, they were very interested in expanding. Implementing a new ‘hub-and-spoke’ approach for growth, the new smaller gym would complement its existing larger site in North Corona.”
In less than one year after taking the space to market, Coreland brokered a 10-year lease with the UFC Gym. The addition directly resulted in lease extensions with three existing tenants, as well as the stabilization of valuable co-tenants It’s A Grind, Submarina and Yogurtland.
The neighborhood shopping center will also soon welcome new restaurant tenant, Shake-It-Up. This healthy burgers, shakes and salads QSR concept recently signed a five-year lease for 1,500 square feet. Shake-It-Ups addition will bring the center to 95% occupancy.
“Our goal was to stabilize the asset so our client could maximize the value of the center,’ said Terry. “We are proud to have met this goal in just over a year of representation.”