Looking to buy a 24 Hour Fitness NNN property? 3 are observed for sale across 3 states, median asking cap rate 7.49%. View 24 Hour Fitness NNN properties for sale, cap rate bands and the 1031 buyer guide.
| Metric | Details |
|---|---|
| Parent / Legal Entity | All Day AcquisitionCo LLC, which does business as 24 Hour Fitness, was the entity S&P rated until it withdrew its ratings on July 29, 2026; confirm the tenant entity in the lease |
| Credit Ratings | No current S&P or Fitch rating; S&P withdrew its ratings on July 29, 2026 |
| Investment Grade Status | Not Yet Verified |
| Sector | Fitness / Health Club |
| Ownership | Private; on January 7, 2026 the company announced that LongRange Capital, a private equity firm, and founder Mark Mastrov had partnered to acquire it |
| US Location Count | Over 240 clubs in 9 states (company website, October 2026) |
| Geographic Concentration | California, Texas, Colorado, Oregon, Washington, Hawaii, New York, New Jersey and Nevada (company club directory, October 2026) |
| Median asking cap rate | 7.49% (asking, listings we track; see the table below) |
| Typical Lease Term Remaining | Varies; confirm in the lease and any post-bankruptcy amendment |
| Guarantee Type | Varies; confirm the tenant entity and any guaranty in the lease |
| Typical Building Size | Varies; confirm in the offering materials |
24 Hour Fitness Business Overview & NNN Investment Profile
24 Hour Fitness filed for Chapter 11 bankruptcy protection on June 15, 2020, and leases on some locations were rejected in the case. As of May 2025, its majority equity owners were Monarch Alternative Capital, Sculptor Capital Management and Cyrus Capital Partners, and on January 7, 2026 it announced that LongRange Capital, a private equity firm, and founder Mark Mastrov had partnered to acquire it. Its website lists over 240 clubs in 9 states, most of them in California. S&P Global Ratings withdrew all of its ratings on All Day AcquisitionCo LLC, which does business as 24 Hour Fitness, including its issuer credit rating, on July 29, 2026, due to the company’s acquisition by financial sponsor Long Range Capital.
For NNN investors, 24 Hour Fitness properties sit outside the investment grade tier: S&P’s ratings were below investment grade when it withdrew them on July 29, 2026. Large-format gym buildings can be costly to re-tenant if the lease goes dark. Underwrite two cases: the ongoing lease, based on the in-place rent, the remaining term, any post-bankruptcy amendment and the creditworthiness of the tenant and any guarantor; and a downside case in which the lease ends early, based on land value, redevelopment potential and demising economics.
24 Hour Fitness Credit Rating Analysis
24 Hour Fitness: no public rating from S&P Global Ratings or Fitch Ratings in our ratings database. Without an agency rating, lease credit is assessed from financial statements and any guarantee in the lease. Ratings checked October 8, 2026. See the investment grade credit tenant ratings table.
S&P rated All Day AcquisitionCo LLC, which does business as 24 Hour Fitness, below the BBB- investment grade threshold until it withdrew all of its ratings on July 29, 2026 following the company’s acquisition by Long Range Capital.
Source: Our ratings database, checked October 8, 2026.
For comparison, our ratings database shows Planet Fitness as not yet verified and Life Time Fitness as rated BB. For detailed analysis of credit ratings and what below-investment-grade status means for NNN underwriting, see how credit tiers and asking cap rates compare across the net lease market.
24 Hour Fitness NNN Lease Structure
Initial terms, rent escalations and renewal options vary by lease. Leases on some locations were rejected in the 2020 Chapter 11 case, and a surviving lease may have been amended. Remaining lease terms vary; confirm them in the lease and any post-bankruptcy amendment.
Identify the tenant and any guarantor named in the lease. The entity S&P rated, All Day AcquisitionCo LLC, may not be the entity that signed a given lease or guaranty; other 24 Hour Fitness entities exist, and a landlord’s 2020 quarterly report, for example, identified 24 Hour Fitness USA, Inc. as the entity that filed for Chapter 11 on June 15, 2020 (Urban Edge Properties Form 10-Q for the quarter ended June 30, 2020). Request the financial statements of the tenant and any guarantor. A secured lender’s recovery prospects do not indicate what a landlord would recover. Building size, lot size and which party pays property taxes, insurance, maintenance and structural costs vary by lease; confirm them in the lease. Investors evaluating a 24 Hour Fitness property should obtain the specific post-emergence lease amendment and verify: surviving rent schedule, escalation structure, any guarantee and which entity gives it, remaining base term, and landlord consent provisions around assignment or subletting.
24 Hour Fitness NNN Cap Rate & Pricing Trends
Live asking cap rates for 24 Hour Fitness and comparable tenants:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| Planet Fitness | n/a / n/a | 6.75% | 6.20% to 7.00% | 9 | +151 bps |
| 24 Hour Fitness | NR / n/a | 7.49% | 7.29% to 8.25% | 3 | +225 bps |
Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 19, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file. Not shown because fewer than 3 active listings with a published cap rate were observed: Life Time Fitness.
Pricing for a specific property can depend on land value, location, re-tenanting risk and the cost of the improvements, as well as the lease; compare an offering with recent sales of similar large-format properties. The live table pools the listings we track for each tenant, and the tenants differ in format, credit and lease obligor, so a gap between rows is not a like-for-like measure of credit. For background on rating tiers, see the investment grade guide.
24 Hour Fitness Real Estate Footprint
24 Hour Fitness lists over 240 clubs in 9 states on its website (October 2026). Its club directory shows most of them in California, followed by Texas, Colorado, Oregon, Washington, Hawaii, New York, New Jersey and Nevada. With clubs concentrated in a few states, assess each site’s land value, natural hazard exposure and local regulation in both the ongoing-lease case and the downside case.
Club size, lot size and parking vary by site; confirm them in the offering materials. Club buildouts are fitness-specific, with specialized HVAC (high-occupancy air handling), shower and locker facilities, extensive plumbing, heavy electrical infrastructure for cardio and strength equipment, and sometimes swimming pools or basketball courts. This specialized buildout can drive significant capital expenditure to convert to alternative uses (grocery, medical, flex industrial, self-storage, or demising to multi-tenant retail), which must be factored into the residual value analysis on any acquisition.
24 Hour Fitness Growth, Restructuring & Forward Outlook
For comparison, Planet Fitness opened or acquired 181 new clubs systemwide in 2025, according to its Form 10‑K. In its January 7, 2026 release, 24 Hour Fitness said it had rolled out an extensive remodel program over the past two years and that new initiatives, partnerships and global expansion plans would be announced throughout 2026.
Key risks to the forward outlook include the effect of hybrid work on commute-based gym traffic, competition from value-tier operators (Planet Fitness, EOS) and boutique operators (Orangetheory, F45), insurance costs on large-footprint facilities, and the potential for a second restructuring event if membership revenue deteriorates. Alongside the ongoing-lease case, NNN investors underwriting a 24 Hour Fitness property can model a downside scenario in which the lease is rejected or renegotiated before natural expiration, and check whether the price still makes sense on land-value-plus-improvements economics in that case.
24 Hour Fitness NNN Investment: Pros & Cons
| Pros | Cons |
|---|---|
| Cap Rate Premium: asking cap rates can carry a spread over stronger fitness credits; see the live table above. | No Current S&P Rating: S&P withdrew its ratings, which were below BBB-, on July 29, 2026, and the company filed for Chapter 11 in June 2020. In another restructuring, what a guaranty is worth depends on which entity gives it, its terms and that entity’s finances; confirm the guarantor in the lease. |
| Real Estate Optionality: Some sites may carry residual land value; confirm with a site-specific valuation. | Re-Tenanting Difficulty: Large specialized fitness buildouts can be costly to convert. |
| Post-Bankruptcy Cleanup: Leases on some locations were rejected in the 2020 Chapter 11 case, and in May 2025 the company listed continuing to optimize its club base among its long-term objectives. | Restructuring Risk: The company filed for Chapter 11 in 2020; another restructuring could bring further lease rejections. |
| Redevelopment Option: Where the price is below the value of the land plus the improvements, a buyer may have options if the lease ends; confirm with a site-specific valuation. | Hybrid-Work Headwind: Hybrid work may reduce commute-based gym traffic at some clubs. |
Comparable NNN Tenants
| Tenant | Rating in our database | Sector |
|---|---|---|
| Planet Fitness | no verified rating | Value Fitness |
| LA Fitness | Not tracked | Mid-Tier Fitness |
| Life Time Fitness | BB | Premium Fitness |
| EOS Fitness | Not tracked | Value Fitness |
| 24 Hour Fitness | No current S&P or Fitch rating (S&P withdrawn July 29, 2026) | Fitness |
“Not rated” or “no verified rating” means our ratings database holds no verified agency issuer rating for that company; it is not a finding that no agency rates it.
Frequently Asked Questions About 24 Hour Fitness NNN Investments
No. S&P withdrew its ratings, which were below the BBB- investment grade threshold, on July 29, 2026, following the company’s acquisition by Long Range Capital. The company filed for Chapter 11 in June 2020, so underwrite the real estate and the lease as carefully as the credit.
What asking cap rates do 24 Hour Fitness NNN properties carry?
The median asking cap rate in 24 Hour Fitness listings we track is 7.49%. Pricing for a specific property depends on the remaining lease term, rent level, location and lease guarantor, and asking cap rates are not closed-sale cap rates.
24 Hour Fitness filed for Chapter 11 bankruptcy protection on June 15, 2020, and leases on some locations were rejected in the case. As of May 2025, its majority equity owners were Monarch Alternative Capital, Sculptor Capital Management and Cyrus Capital Partners, and on January 7, 2026 the company announced that LongRange Capital, a private equity firm, and founder Mark Mastrov had partnered to acquire it. Its website lists over 240 clubs in 9 states, most of them in California.
Run two cases. In the ongoing-lease case, underwrite the in-place rent, the remaining term, the post-emergence lease amendment and the financial statements of the tenant and any guarantor. In a downside case, assume the lease is rejected or renegotiated before natural expiration and test whether the price still works on land-value-plus-improvements economics, including re-leasing cost and downtime. Verify the surviving rent schedule and any guaranty, and get a re-tenanting cost estimate against realistic alternative-use rents for the specific submarket.
It can be, but conversion can carry meaningful capital cost. The large specialized fitness buildout (shower/locker facilities, high-capacity HVAC, heavy electrical, pool or court infrastructure where present) is not trivially convertible. Possible repositioning paths, depending on zoning and the submarket, include: demising to multi-tenant retail, conversion to medical office or urgent care, flex industrial or self-storage in appropriate submarkets, or scrape-and-rebuild in high-land-value locations. The cost of repositioning and the gap rent during transition must be capitalized into the acquisition underwriting.
How do 24 Hour Fitness and Planet Fitness asking cap rates compare?
Where we track enough listings for both, the live table on this page shows each tenant’s median asking cap rate. The two are not like-for-like: the clubs differ in size and format, the tenant and any guarantor named in each lease can differ, and asking cap rates are not closed-sale cap rates. Compare a specific property on its lease term, rent, location and the tenant and guarantor named in the lease.
When the buyer owns the building, a cost segregation study may reclassify part of the purchase price, such as site improvements and some building systems and equipment, into 5-, 7- or 15-year property. The reclassified amounts come out of the building’s depreciable basis; they are not a second deduction for the same cost. Reclassified components that are qualified property can be eligible for 100% bonus depreciation if they were both acquired and placed in service after January 19, 2025, subject to the eligibility rules, including the written binding contract rule, and to the election out (Internal Revenue Code section 168(k), as amended by Public Law 119-21; IRS Notice 2026-11). How much qualifies varies widely by property. The IRS Cost Segregation Audit Techniques Guide (Publication 5653) describes several study approaches and calls the detailed engineering approach from actual cost records generally the most methodical and accurate. For a land-only interest with no owned depreciable improvements, land cannot be depreciated (Treasury Regulation section 1.167(a)-2; IRS Publication 946); any depreciable improvements the landlord owns are analyzed separately. Equipment owned by the tenant is not the landlord’s to depreciate. Depreciation, including bonus depreciation, can be recaptured on a taxable sale; a 1031 exchange can defer gain, but some recapture can still apply (Internal Revenue Code section 1245(b)(4); IRS Publication 544). This is general information, not tax advice; consult a tax professional. See the Depreciation by NNN Property Type.
Related: Gas Station Bonus Depreciation
24 Hour Fitness Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market 24 Hour Fitness properties, review the lease and the tenant’s credit, and compare pricing with current listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission.
Selling: We can prepare an opinion of value from current listings and recent sales and, when it fits your goals, run a confidential sale to private investors, family offices and institutional buyers. See our guide to off-market sales.
Financing: Investment Grade Capital, a service of Investment Grade LLC, matches buyers and owners with lenders for acquisitions and refinancing.
1031 exchanges: Tell us your identification and closing deadlines so we can plan the search around them.
Request an NNN investment consultation or email team@investmentgrade.com.
Related NNN Tenants
24 Hour Fitness as 1031 replacement property
Whether a 24 Hour Fitness property suits a 1031 exchange depends on the specific property, the lease and any guaranty, the price and your basis, and what you need from the replacement property, not on the credit rating alone. Compare the headline asking cap rate with the remaining lease term, any post-bankruptcy amendment, land value, demising cost and alternative-use demand. If you need predictable income and certainty of closing, weigh the downside case carefully. Start with the 2026 NNN cap-rate framework, then compare with the 1031 tenant-credit shortlist.
24 Hour Fitness NNN Properties Observed For Sale
3 active 24 Hour Fitness net lease listings observed across public listing sources, most recently Oct 16, 2026. Asking figures as published by the listing party.
| Location | Asking Price | Cap Rate | Building SF | Term Left | |
|---|---|---|---|---|---|
| Beaverton, OR | $16,800,000 | 9.00% | 32,766 | 5.0 yrs | View listing |
| Vancouver, WA | $12,500,000 | 7.49% | 45,000 | 2.0 yrs | View listing |
| Las Vegas, NV | $18,000,000 | 7.08% | 57,963 | n/a | View listing |
Search all 3 observed 24 Hour Fitness listings and the full NNN inventory
Market observations aggregated from listing broker materials; not offerings by Investment Grade Income Property, LP. Buyer representation available on a cooperating commission basis. Information deemed reliable but not guaranteed.
