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R E T A I L
Bally Total Fitness boasts 4 million members in the United States. 

 National, Regional and Local Health Clubs Work Out in Southeast

DATELINE, VIRGINIA BEACH, VA - In Mid-Atlantic and Southeastern climates, where lighter fabrics and shorter clothing extend past the summer months, it's not a matter of how often we need to exercise to maintain our figures, but where we choose to do our daily workout.

Bally Total Fitness - Nationwide
As the largest and only nationwide commercial operator of fitness centers in America, Chicago-based Bally Total Fitness boasts a membership of over 4 million people in their 380 facilities throughout the United States and Canada. 

Unlike smaller clubs, Bally has a well-established presence. Due to their dominance in the fitness industry, approximately 87 percent of the population, fitness-conscious or otherwise, are aware of the brand name. David Smith, national director of real estate development for Bally, points out that no other gym can offer this network of services. Clients may purchase packages enabling utilization of any Bally location nationwide. This is a perk for members who travel. Anywhere in the United States, they can benefit from Bally's competitive aerobic schedule, state-of-the-art equipment and skilled personal trainers.

"A major benefit of being a national entity is that Bally picks up on the latest trends more quickly than other clubs," says Smith. Bally was one of the first to introduce kickboxing as a part of the aerobic schedule and is continuing to develop routines for classes such as Pilates, yoga and spinning.

The importance of exercise and wellness is the main focus of Bally's continuing efforts to expand.  Not only is Bally growing geographically, but it is expanding and upgrading operations and new initiatives including nutritional supplements and retail stores in most locations.

A threshold population density of 80,000 residents within a 3-mile radius and a solid middle class area are key ingredients for Bally sites. Of the 380 clubs, 300 are due to undergo a major renovation. "A lot of Ballys in the Southeast are vintage," says Smith. "We didn't necessarily build these from the ground up, and we are working diligently to reposition ourselves in this market." The club has a huge presence throughout Florida and is looking to expand throughout Atlanta, Charlotte and other Southeast cities.

Another factor that distinguishes Bally from other clubs is that it is the only publicly traded fitness facility. Bally has a balance sheet of over $200 million with a market capital of over $1 billion.

Michael Finkle, principal of DRE's Miami office, exclusively represents Bally Total Fitness throughout Florida and completed several deals in 1999 in Fort Lauderale, Pembroke Pines, Carrolwood and West Palm Beach totaling 80,000 square feet. Negotiations are underway for locations in Tampa, Miami, Broward County and Palm Beach, totaling 150,000 square feet. Randy Johnson, principal of DRE's Charlotte, North Carolina, office, negotiated a transaction for the health club in Pineville, North Carolina, for 25,000 square feet.
Fitness First offers kickboxing and other trends in group exercise. 
Fitness First - Maryland and Virginia
Peter Harvey is president of Fitness First, Maryland's largest health club chain. "Since opening in 1991, the gym has experienced extraordinary growth," says Harvey. Fitness First now boasts a membership of over 24,000 people.

In 1991, Harvey bought a small, 3,000-square-foot gym. Since then, Fitness First has exploded into nine area clubs, the smallest being 11,000 square feet. "The difference between then and now is then, it was 'Why should I join a club?'" says Harvey. "Now, it's 'Which one should I join?'"

For one low membership fee, clients have the freedom to utilize all nine locations: Silver Spring, Bethesda, Olney, Rockville, Gaithersburg, North Potomac, Germantown and Frederick, Maryland. 

"Opening several clubs in the same general area has provided a hedge against crowding," states Harvey. In addition, several costs are spread out and drastically lowered, such as administrative, advertising and equipment ordering.

Each Fitness First club offers state-of-the-art equipment and a non-pretentious atmosphere where members don't have to clean out their wallets to have a clean, nearby facility in which to exercise. They also feature the latest classes: aerobics, spinning, kickboxing and even yoga. Other amenities include private steam rooms, saunas and, in some locations, jacuzzis.

Why Fitness First? "We work for the members," says Harvey. "Service doesn't just mean showing someone how to do an arm curl. It means taking an interest and asking them about their day." 

Harvey's clubs can usually be found in high-density, residential, white-collar areas, and the average member is 25 years of age or older. 

As for current expansion plans, Fitness First will be opening three clubs throughout Northern Virginia within the next year. "We're going to continue to expand throughout Maryland and Virginia, then who knows what the future holds," Harvey said.

Alan Luger and Earl Goodman, principals of DRE's Washington, D.C., office, exclusively represent Fitness First in its search for new sites. The most recent deals, in Bethesda and two locations in Frederick, Maryland, total over 26,000 square feet. Past negotiations include a total of approximately 53,000 square feet of space in Rockville, Bethesda and Frederick, Maryland.
Inlet Fitness is located on Virginia Beach's Long Pointe Bay. 
Inlet Fitness - Virginia Beach, Virginia
Rick Reed, president, owner and operator of Inlet Fitness is a native of Virginia Beach, Virginia, who recognized the need for a full-service, state-of-the-art health club in the area. "The demographics dictated it," says Reed. "There aren't any fitness clubs [like Inlet] within a 10-mile radius." 

Situated in the Great Neck corridor, Inlet Fitness offers members amenities not available in other gyms. Since Inlet Fitness is situated directly on Long Pointe Bay, water activities are part of the Group Fitness program. "What other club offers kayaking classes?" jokes Reed. Also key to Inlet's location is a park and a school a little over a mile away. These serve as focal points for Inlet's outdoor "Boot Camp." This is an advanced class, where members begin their workout at the club with a variety of jumping rope, squats, push- and pull-ups. They jog to either destination, perform extreme cardiovascular exercises such as running up and down a set of bleachers, move onto lunges, sprints, jumping jacks, then jog back to the gym for some abdominal work and a cool down. It is a grueling, thorough workout.

In addition to outdoor activities, the spotless 12,960-square-foot facility offers free weights, state-of-the-art circuit training, a private women's gym and a large, glassed-in aerobics room. There is also a retail store and a café that serves up healthy snacks.

According to Reed, the biggest difference is that the members dictate how the club is run. "Although large, corporate gyms have the power and big advertising dollars. Independent gyms have the ability to adapt and change according to member suggestions," says Reed. "That's what attracts people. It's how we keep our clientele satisfied."

John Duffy, of DRE's Virginia Beach office, represented Inlet Fitness in the negotiations for its first location. 

"We looked at other, even larger spaces," says Duffy, "but this was definitely the most appealing."  After months trying to find the perfect location, they jumped when they found the available site at Long Pointe Bay. The deal was signed in the summer of 1999, and in March 2000, Inlet Fitness opened for business. With ample outside stretch decks and a gorgeous view of the bay, Inlet's membership has already grown to over 1,600. 

Divaris Real Estate, Inc.
One Columbus Center, Suite 700
Virginia Beach, VA 23462
TEL: 757.497.2113 FAX: 757.497.1338
info@divaris.com

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