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Gold’s Gym
From dairy cows to juice bars, turning full-service fitness into business gold.
Certified Development Company:
Minnesota Business Finance Corporation
Owners:
Brad and Mary Kloss
Location:
Sartell, Minn.
Client:
Gold’s Gym
MBFC Solution:
$1.3 million SBA 504 loan on a $5.1 million construction project
Third-Party Lender:
Bremer Bank, St. Cloud, Minn.
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Gold's Gym in Sartell is a full-service health club and fitness facility
that serves the greater St. Cloud area. The new, 30,000
square-foot facility offers a variety of fitness classes and features a
complete selection of fitness machines, a juice bar, a lap pool and
whirlpool, private weight rooms for women as well as diehard
lifters, and a 32,000-square-foot tennis center adjoining the main
building. The business created 25 new jobs.
Dairy cow nutritionist Brad Kloss and his wife, Mary, had already
achieved noteworthy success in taking care of the health and
well-being of dairy herds in California's Central Valley region.
But in 2002, they decided to go beyond their four-legged
clientele to improve the fitness levels of friends and neighbors in
the area where they grew up. And what better way to invest in
the health of the growing St. Cloud area than with the premier
health club franchise known for its quality reputation and upscale
amenities — Gold's Gym.
With a population of more than 250,000 and growing, the
greater St. Cloud area eagerly welcomed the Kloss' introduction
of Gold's Gym as an alternative to other, somewhat outdated
health clubs. In less than two years, more than 6,000 members
enrolled in the club, which is now open on a 24-hour basis to
meet its members' individual schedules.
Making this investment in community health called for an equally
"fit" financing package. An SBA 504 loan through Minnesota
Business Finance(MBFC) met the Kloss' need for a low down payment
that helped conserve capital, which they then parlayed to purchase
four additional Gold's Gym locations. "From the Bank's initial
suggestion of the 504 Loan to the day we first opened our doors,
MBFC made the process easy and efficient," said Brad Kloss. "We
couldn't be more pleased with the process and will certainly look
at it again for future projects."
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