Fitness Center and Gym Financing

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

Fitness center, health club, and gym financing is one of the more active SBA-driven owner-user CRE niches in the country. The asset class spans large multi-purpose health clubs (Equinox, Lifetime, 24 Hour Fitness type properties), mid-size franchise gyms (Anytime Fitness, Planet Fitness, Snap Fitness), boutique fitness studios (yoga, pilates, barre, spin, CrossFit, Orangetheory, Pure Barre), and independent gym operators. The lender ecosystem is dominated by SBA 504 and 7(a), specialty health club banks, conventional bank balance sheet for established operators, and equipment financing for gym equipment.

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Fitness Center and Gym Financing Snapshot

Typical loan size
$500K to $15M
Maximum LTV
80 to 90 percent (SBA); 60 to 70 percent (conventional)
Typical DSCR floor
1.25x to 1.40x
Term
10, 20, or 25 years (SBA)
Recourse
Recourse with personal guarantees
Special-purpose classification
Yes (20 percent down on SBA 504)
Equipment financing
Often bundled or separate
Lender count actively quoting
Approximately 30 to 50 SBA + specialty fitness

Where Fitness Center and Gym Loans Come From

Fitness center financing operates primarily through SBA 504 and 7(a). Specialty fitness lenders (Live Oak Bank dominantly, plus several regional banks) offer SBA-wrapped and conventional execution. Equipment financing handles gym equipment, cardio machines, weights, and FF&E.

Capital Source Rate Range (Apr 2026) LTV / Down Best Fit
SBA 504 80 percent (special-purpose, 20 percent down) Owner-operator gym real estate $500K to $10M total
SBA 7(a) 85 to 90 percent Acquisition + equipment + working capital + franchise fees
Specialty fitness bank 85 to 90 percent Multi-unit franchisees and established gym operators
Conventional bank balance sheet 65 to 75 percent Established multi-location operators
Equipment financing 100 percent of equipment Cardio, strength, free weights, FF&E refresh

Pricing is indicative and reflects active CLS CRE quote pipeline as of April 2026. Actual pricing depends on property condition, sponsor profile, deal size, and market dynamics.

Typical Fitness Center and Gym Deal

Single-unit franchise gym acquisitions (Anytime Fitness, Planet Fitness, Snap Fitness) typically run $500K to $2M. Boutique studio acquisitions (yoga, CrossFit, spin) run $250K to $1.5M. Mid-size health club acquisitions run $1.5M to $5M. Large multi-purpose health clubs (Lifetime, Equinox, 24 Hour Fitness type) run $5M to $25M+. Multi-unit franchisee territories and brand consolidation run $5M to $50M+.

Sponsor profiles span first-time franchisee owner-operators (often executives transitioning to entrepreneurship), multi-unit franchisees with 5 to 50+ locations, and institutional consolidators of franchise gym networks. Industry experience matters but is less specialized than other operating businesses.

Operating revenue is dominated by membership fees with secondary income from personal training, retail (apparel, supplements), and ancillary services. Member retention and acquisition cost (CAC) are core metrics. Member churn typically runs 4 to 8 percent monthly across the industry.

Fitness Center and Gym Underwriting Considerations

Fitness center underwriting is operating-business intensive. Lenders evaluate the property, the operating business, brand strength (for franchises), and management capability.

Common Fitness Center and Gym Financing Pitfalls

Fitness center transactions have specific failure modes around membership churn, equipment costs, and concept obsolescence.

A Real Fitness Center and Gym Deal

On a $1.2M acquisition of a Planet Fitness franchise in a suburban Midwest market, the buyer was a first-time franchisee with 12 years of corporate management experience and a strong personal balance sheet. The deal allocated $700K to real estate (an 8,500 square foot facility leased on a 15-year ground lease), $300K to equipment (cardio, strength, locker room build-out), $150K to franchise fees, and $50K to working capital. SBA 504 financed the leasehold build-out and equipment as the franchise was a leased model rather than owned real estate. SBA 7(a) financed equipment, franchise fees, and working capital at $500K. The deal closed in 75 days. Year-one membership reached 2,800 members at month 14, slightly above pro forma.

All deal references anonymize borrower and lender identities and use city-level geography only.

Fitness centers are one of the more active SBA niches but also one with higher operating volatility. The financing exists, the franchise programs streamline execution, and operators with management experience can succeed. The underlying business is durable but requires constant member acquisition.

Other Specialty Property Financing

Fitness Center and Gym Financing FAQ

Yes. SBA 504 and 7(a) widely finance owner-operator gym acquisitions. SBA 504 for real estate at 80 percent LTC (special-purpose 20 percent down). SBA 7(a) for equipment, franchise fees, working capital, and goodwill up to $5M total.
Yes typically. Gyms and fitness facilities are classified as special-purpose under SBA 504 rules due to limited adaptive reuse value and specialized facility build-out. The classification requires 20 percent down.
Most major franchise brands are on the SBA Franchise Directory including Anytime Fitness, Planet Fitness, Snap Fitness, Orangetheory, Pure Barre, F45, OneLife Fitness, and many others. Eligibility provides streamlined SBA financing through preferred lender relationships.
On owner-user SBA 504, 20 percent down (special-purpose). On SBA 7(a), 10 percent down. On conventional bank, 25 to 35 percent down.
Equipment financing handles cardio, strength, free weights, and FF&E at 100 percent of equipment cost on 5 to 7 year terms. Some operators bundle equipment with SBA real estate financing; others use standalone equipment financing.
Single-unit franchise gyms typically run 12 to 18 percent operating margins. Boutique studios run 15 to 25 percent. Large health clubs (Equinox, Lifetime) run higher with personal training and retail components.
Lenders evaluate active member count, member retention rates, member acquisition cost, and ancillary revenue (personal training, retail). Stabilized fitness centers typically have 800 to 3,500 members per location depending on size and concept.
Property and casualty, general liability, professional liability (personal training), products liability (retail), umbrella coverage, and worker's compensation. Liability limits typically $1M to $3M per occurrence.

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Tell us about your fitness / gym deal. We will run it past lenders that actively fund this property type and send back terms within 48 hours.

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