Overview: We are raising money to build a commercial-sized, locally owned gym in Surf City, NC. We want this gym to be the local staple for health and fitness enthusiasts in this popular beach town. Surf City has seen a rapid 10.4% increase in population in the last three years and is expected to continue to grow as new housing developments are created and the Hampstead Bypass Highway is complete, connecting Surf City directly to the heart of Wilmington, NC (117,000 pop.) Located 20 miles south of Marine Corps Base Camp Lejeune, Surf City is a hot spot for service members and their families.
Currently, there are just two gyms in the area, and both are far too small to meet the growing demand. Both service members and local fitness enthusiasts deserve a training facility with quality equipment and enough room to offer a wide variety of amenities. In the last four years, several large businesses have opened in Surf City, including a Walmart Grocery Store and Publix Grocery Store. Three neighborhoods with over 200 single-family homes each have been constructed, as well as a 300-unit apartment complex and another on the way. This area is growing and we need a gym that can meet the demand of the active demographic.
1. Executive Summary: Our mission is to bring a state-of-the-art gym to the area of Surf City and Hampstead, NC, where fitness enthusiasts can train without limitation of available equipment or space, and that offers members a truly unique and unrivaled training facility for their individual fitness goals.
Located 20 miles south of Marine Corps Base Camp Lejeune and 20 miles north of Wilmington, NC, Surf City is a hot spot for Marines and their families. It is also a great location for beach lovers and professionals who work in Wilmington but wish to live outside the city. Due to recent USMC policy changes and infrastructure development, Surf City and Hampstead are becoming increasingly populated. The populations of Hampstead and Surf City have risen by 8.35% and 10.4% since the 2020 census data.
In 2021, all of the Marine Special Operations Command was consolidated to Stone Bay, an area on the south side of base, nearest to Surf City. The command hosts 15,000 operators and support personnel, a community full of active gym-goers.
On the infrastructure side, housing developers are turning to Hampstead and Surf City because of the available land they offer in Pender County, while New Hanover (Wilmington) becomes overcrowded. In 2018, the Surf City Bridge was constructed, which connected Topsail Island with mainland Surf City with a fixed, raised bridge over the sound. The result was increased access and traffic through Surf City to the island. As traffic increased, businesses flocked to the area in recent years. Since 2018, new businesses include a Walmart Grocery Store, a Publix Grocery Store, Dunkin’ Donuts, McDonalds, and a soon-to-open PetCo. Additionally, on at the corner of Highways 17 and 210, is the Surf City Crossing, hosting a Lowe’s Home Improvement, Harris Teeter grocery store, several small businesses, and a newly constructed apartment complex and brewery, and is trafficked by 27,000 cars monthly.
We intend to build a commercial-sized at the Surf City Crossing on one of the available out-parcels.
Moreover, in 2030 the Hampstead bypass construction will be complete – a highway leading from Wilmington to the North end of Hampstead. This bypass will shorten commute times to Wilmington considerably, and lead to more people moving to Hampstead and Surf City as suburbs. The bypass entrance will be 6 miles from our proposed location.
Due to the growth of new-construction homes and the completion of the bypass, the Surf City area is going to see a dramatic rise in its current 16,000 resident population. The area lacks a quality gym capable of supporting a growing population. Within a five-mile radius of our proposed location are two gyms. Both are incredibly small and under-equipped and neither has the space to expand. With a growing population, these gyms are going to become more over-crowded than they are currently and will not be able to meet the demand of local customers.
Our vision is to build a quality facility with state-of-the-art equipment and foster a community of members that have a passion for fitness. Our gym will feature a wide range of equipment, suitable for all styles and methods of training. Bodybuilding equipment will be a primary focus, with added areas for powerlifting and cross-training. We will also feature a cardio cinema that will show movies all day while members exercise. Increasing the member experience, THE IRON ANCHOR will have a coffee/smoothie lounge and our locker rooms will be comforting and usable. This gym will be capable of hosting over 4,000 members as well as tourists and vacationers visiting Topsail Island. THE IRON ANCHOR will be the leading standard for gyms in this market and will foster an environment for all fitness enthusiasts.
2. Investment Opportunity
a. Funding Goal: Our goal is to raise $1 million to secure a Small Business Administration (SBA) loan of $5 million. This money will be used to develop a site, build a 18,700 square-foot (sqf) facility, and equip it with high-end gym equipment.
b. Terms: Investors will own 25 percent of the company.
c. Use of Funds: Large cost estimates listed (see spreadsheet for detailed list)
1. Construction Costs: $3,500,000
2. Land: $542,000 for 1.19 acres
3. Land Development: $275,000
4. Arsenal Strength Equipment Quote: $300,000
5. Total: $4,813,154
d. Milestones: With this investment, we will bring a real gym to the area of Surf City. This gym will be a hot spot for local Marines, residents, high school students, and summer vacationers in need of a gym. With the recent growth along Highway 210, this area proves to have significant potential. We expect to capitalize on the growing population and draw members from nearby gyms. Within three years of operation, we expect to have 3,500 members, paying $75 per month.
e. Vision: Our vision is to build the premier training facility in the Surf City. We will work with industry leaders to create a gym with top-of-the-line equipment. We envision this facility to become the epicenter of fitness enthusiasts in the Surf City/Hampstead area, and draw additional members from Holly Ridge, Sneads Ferry, and Topsail Island. THE IRON ANCHOR will offer more equipment, better space, and more amenities than the competitors. We will become the leaders in the fitness community in Pender County.
3. Company Synopsis: THE IRON ANCHOR will offer an ideal training environment for fitness enthusiasts and local Marines. Our gym will be 18,700 square feet, with 8,800 square feet dedicated to the gym floor. Equipment will not be so close together that members need to worry about hitting their shins or getting in others’ way.
This gym will be outfitted with the most up-to-date equipment, made by industry leaders. The average gym goer does not care nor desire a long list of amenities like a yoga room, spin-cycle studio, or hot-tub, which all take up space and offer little revenue. The average gym-goer wants quality equipment and a space to train and improve physically and mentally.
A key feature that the current gym community wants to see is metal weight-plates. The sound it creates when lifting adds to the environment and atmosphere we want to foster. Machines that are plate-loaded, rather than pin-loaded, add to this ambiance. Members want to be excited to lift weights. Having quality equipment enables that excitement and keeps members coming back.
Additionally, a basic piece of equipment that is not in any existing local gym currently is a deadlift platform. Both gyms restrict heavy deadlifts due to the infrastructure and lack of dedicated platforms. This is a staple of any gym that is currently not offered, and neither gym has the space to offer this.
The locker rooms will increase the members’ overall experience. They will include wood-finished lockers, private showers and restrooms, and a sizable sauna. Additionally, we will have a posing room with stage-lighting and mirrors to practice bodybuilding routines. This private room will offer members a space to practice their routines and take progress-photos as they prepare for bodybuilding competitions – something no gym in the local area offers.
Lastly, and most importantly, we will offer excellent personal training. Currently, the state of North Carolina does not legally require personal trainers who operate in the state to have any specific license, certification or registration. This lack of regulation allows for anyone to become hired as a personal trainer and begin training clients without any knowledge, experience, or certification. We believe everyone deserves the best training available. Knowledgeable trainers with a passion for health and fitness are invaluable for a gym, as they can draw in clients and make significant improvements in a person’s life, and that is what trainers are for.
THE IRON ANCHOR will contract personal training under JessBeFit, owned by Jessica Lewis. She will hire and manage the best trainers under her company and be fully dedicated to offering the best personal training possible. Jess will bring her active clientele in the area to the gym and help grow membership. She will also handle new member-client recruiting for personal training. THE IRON ANCHOR will receive 15% of all personal training fees that JessBeFit makes and charge a monthly office space rental. This relationship alleviates THE IRON ANCHOR from the managerial burden of selling personal training, but offers all the benefits of profit and creating the best personal training experience for members of THE IRON ANCHOR.
4. Market Opportunity
Population: According to national data, the state of North Carolina has 451 gyms in operation. With a total population of 10,146,788 people, North Carolina has just 4.44 gyms per 100,000 residents, ranking the state 50th in the nation for gym access. In the Surf City/Hampstead/Holly Ridge area, there are two major gyms and over 16,000 residents, a sizable ratio compared to the rest of the state but leaving significant are for improvement.
The population of the Surf City area is 16,785 with an average annual income of $73,748.00. Hampstead, located in Pender County just 4 miles away, has witnessed sizable growth over the last decade. In 2009, just 20 homes were sold for a price of $500,000 to $750,000. In 2019 that number climbed to 80. With minimal available land for construction in New Hanover County, investors are turning to Pender County, specifically in Hampstead due to its proximity to Topsail Island.
The current gyms in the Surf City/Hampstead area are insufficient to meet the demand of a growing population. As the northern Hampstead and Surf City areas continue to increase in population with new housing developments, these gyms will become severely over-crowded, especially in the summer months when vacationers are in search of a gym.
Moreover, as the Wilmington-Hampstead bypass continues construction, with estimated completion of 2030, more Wilmington residents are moving to Hampstead and Surf City as a suburbs. The bypass entrance will be 6 miles from our proposed location. Commute times to Wilmington are expected to drop dramatically for residents living in Hampstead and Surf City. New residents will need greater access to gyms soon.
Lot: Our proposal is to build the gym on an available out-parcel at the Surf City Crossing, which hosts a Lowe’s Home Improvement store, Harris Teeter grocery store, and several small restaurants. 27,000 vehicles pass through this corner every month. South on Alston Boulevard is a 200-unit apartment complex, as well as a new construction neighborhood. Situated at one of the main entrances to the City of Surf City, this center is visited by both locals and tourists. With the growth of Pender County, this property is situated in a prime position for current needs and future demands.
Setting: The environment of the gym effects how members train and their results. An ideal gym environment has up-to-date equipment (with constant upgrades and additions) and a staff that cares about the gym. The problem we see in this market is a lack of equipment upgrades, a lack of care for the gyms, and an overall apathy for the clientele. Our solution is to build an ideal training facility and higher a staff that truly cares about health and fitness.
Recent trends in the fitness industry are moving towards bodybuilding-focused training. With the increase of social media in the fitness industry, enthusiasts want to showcase their workouts on video. To do this, they need ideal environments, which means good equipment and a good facility. Our gym will meet the current trends with design, equipment, and amenities.