Blink Fitness – a premium-quality, value-based gym that has challenged industry norms by celebrating how exercise makes you feel, not just how it makes you look – and Seritage Growth Properties (NYSE: SRG) have announced a deal to expand Blink Fitness’ reach.
The multi-property lease agreement will bring 17 corporate and franchisee-owned gyms to major metropolitan areas across ten states and is a part of Blink Fitness’ aggressive strategic growth strategy.
“At a time when many retailers are shutting their doors, Blink is thriving. Seritage recognized our strengths and was eager to find real estate opportunities for us across the country as we continue to grow our footprint,” said Todd Magazine, CEO of Blink Fitness. “Our partnership with Seritage Growth Properties is one of the many exciting real estate initiatives driving our rapid national expansion.”
Blink Fitness offers a truly unique experience to its members, based on a company philosophy of Mood Above Muscle™, which celebrates the positive feelings you get from exercise rather than just the physical benefits. Their Feel Good Experience® comes to life in each gym through a commitment to providing contemporary and colorful design, elevated customer service, relentless focus on cleanliness, energizing music and confidence-boosting training programs.
Since its inception in 2011, Blink Fitness has opened 70 company-owned locations across New York, New Jersey, Pennsylvania and California, and has a number of additional corporate- and franchisee-owned locations in various stages of development in major U.S. markets.
According to Magazine, Blink will have approximately 85 locations open and operating by the end of 2018, and will enter additional markets, including Georgia, Illinois, Massachusetts, Michigan and Virginia, over the next year or so. He also expects Blink to surpass the 300-unit mark over the next five years, with strategic multi-unit real estate deals helping drive this rapid growth.
“We are very pleased to establish this mutually beneficial relationship with Blink Fitness, a brand that exemplifies the differentiated, growing and in-demand retail concepts that are joining our national portfolio,” said Benjamin Schall, President and Chief Executive Officer of Seritage Growth Properties. “This lease is a perfect example of how our national portfolio can provide retailers unparalleled access to prime real estate in high growth markets.”
Seritage Growth Properties is a publicly-traded REIT with 225 wholly-owned properties and 24 joint venture properties totaling approximately 39 million square feet of space across 49 states and Puerto Rico. Since its formation in July 2015, Seritage has established itself as one of the most active developers of retail and mixed-use properties in the country, with a proven track record of executing value-enhancing projects that benefit consumers and local communities. The company’s platform, scale, and control over well-located real estate uniquely position Seritage as a preferred partner for growing retailers, mixed-use developers and institutional capital providers.