Highly Profitable Fitness Studios, High End LA Neighborhood

This highly profitable business (highly profitable pre-and post-COVID, stable during COVID) is up for sale at a fraction of the business's true worth due to family considerations that are causing the owners to leave the area. The facility is located in the affluent area of LA near Silver Lake, Los Feliz, Echo Park, Atwater Village, Glendale, and Hi-Fi. A ClassPass Top Studio and LA Times top choice for quarantine workouts, this business is currently run smoothly by a General Manager and partially absentee owners. The staff and client base are loyal and loving, and the community tied to this establishment is a huge asset. The facility is a stylish 5,000 square foot stand-alone property that was gut-renovated at a cost of approximately $500,000 in recent years to create an industrial-chic setting that fits in the walkable, commercial strip where it is located. With an airy, minimalist feel, beautiful wood and exposed pipes, concrete floors, the designer space is the business's biggest selling point. A highly profitable and proprietary training program developed by the owners will be included with sale. There is also room to expand into an unused studio on the property. Location: Los Angeles, California Year Established: 2017 Number of Employees: 24 Real Estate: Leased Building Sq. Ft.: 5,000 Rent: $21,000.00 Per Month Lease Expiration: 6/15/2022 Facilities: This is a 5,000 square foot stand-alone property that was gut-renovated at a cost of approximately $500,000 in recent years. A private lot and entrance includes 13 parking spots on site. A spacious and airy lobby greets clients with two restroom facilities off the lobby including two toilets and one shower each. All three high-capacity studios are fully stocked with equipment for sold out classes, with cost of spin bikes included in the sale price as they were paid off this year. Market Outlook/ Competition: There is no competition for Spin or HIIT classes in this immediate market which made this business highly profitable from opening even with minimal marketing. Many competitors closed permanently or lost market share due to COVID closures while this studio remained open and significantly increased market share across neighborhoods. Now that restrictions are loosened and clients have returned, expanding schedule and client capacity to pre-COVID levels should be expected to multiply profits. Growth & Expansion: Following a 2019 marketing push and design overhaul, monthly profits increased to 230k annualized and rising fast until the COVID shutdown. An aggressive pivot during COVID to a full service outdoor studio plus online classes maintained client base through pandemic, however, capacity cut significantly. Current profits (est $10-20k trailing year) are based on about half as many classes as were running pre-COVID with most of the same costs. Client survey shows community is ready for indoor classes and full pre-COVID schedule so immediate upside potential.