10 Grattan Street Is the Lead. Nothing Is Signed
UrgentOpen
The money model is still blocked on a signed space. The lead is the ground floor of 10 Grattan Street in East Williamsburg, two blocks from Oscar's office. The landlord's floor plan shows 1,966 sq ft inside plus a 64 sq ft rear yard. The front section is 15 ft 10 in wide, which just clears the 15 ft minimum Justin set on August 27, and the back opens to 23 ft. There is one small bathroom today. Upstairs is a separate door and offices for the art business in the attached corner building. Richard the architect called to check in, Oscar sent him the floor plan and the address, and his read was that the ground floor has potential and the upstairs has violations, which belong to the separate upstairs space. The space will not be ready until January 1, which gives Oscar time. The owner's side has told Oscar his credit is good. Oscar's rough math says rent alone needs about 30 members. The rest of the board: a 2,200 sq ft space on Front Street asked $21,000 a month, more than double the $10,000 ceiling, and Oscar walked away. 191 Clifton Place is gone. 232 Varet Street is ruled out unless it becomes its own walled unit (see Own Walls, Own Key below), with no update since August 27. The Roberta's section has had no update since August 20.
What is neededCall the owner on September 25 and set the meeting. Get the landlord and building details in writing: rent, lease length, what the owner fixes, and confirmation that a gym is allowed on that floor. Then the architect, then the contractor, and the lawyer reads every document before anything is signed. Keep two or three other spaces moving so Grattan is never the only lead.
The Break-Even Member Count Does Not Exist
UrgentOpen
The number that says whether the gym works at all is how many members cover every bill and pay Oscar. Oscar started it: at 10 Grattan Street, rent alone needs about 30 members. That is one bill. Staff, insurance, utilities, equipment payments, software, and marketing are still missing from it. It also has to be checked against the room. A room with space for about 11 people at once can only serve so many members at the busy hours before and after work, so the break-even count has to fit inside what the room can carry. If it does not fit, only price or costs fix it.
What is neededFinish the break-even number with every monthly cost in it, then check it against how many members the Grattan layout can serve at its busiest hours.
Nobody Has Priced the Grattan Build-Out Yet
UrgentOpen
The people exist from the earlier spaces: Richard the architect, Muhammad the contractor (who first recommended Richard), and the real estate lawyer. Only Richard has looked at Grattan, and only from the plan and the address. Nobody has put a price on the build-out. Richard's fee for drawings is about $8,000, and Oscar was weighing skipping the architect and going straight to the contractor to save it. Justin's answer on September 24 was to get drawings (see Drawings Before Any Build-Out below). This job is small and simple (a bathroom with a shower, changing stalls, a front desk area, and some plumbing), so the drawing fee should match a small job.
What is neededGet Richard's price for drawings of exactly this job and compare it with at least one other architect. Then send the drawings to more than one contractor for a build-out price.
The Money Model Is Unverified
UrgentOpen
Before anything locks, one new membership (with its initiation and any prepay) has to fund acquiring and serving two more inside 30 days, and lifetime gross profit needs to be at least 3x acquisition cost. Acquisition cost and churn are still unknown.
What is neededBuild the model on a real candidate space, then run the 2-in-30 test and the 3-to-1 ratio.
Lease Deposits Are Not in the Capital Plan
UrgentOpen
A Brooklyn commercial lease usually wants first month, last month, and a security deposit at signing. That is real cash out the door before a single dollar comes in, and it is not carved out of the roughly $200K.
What is neededReserve a deposit line out of the $200K, or negotiate it down in the lease.
The Grattan Layout Is Drawn but Not Picked or Costed
MediumOpen
Justin drew several layouts for 10 Grattan Street on September 22, using the real sizes of commercial gym equipment. The main one puts check-in in the narrow front, then two private changing stalls and 18 lockers, then two rack stations with benches and dumbbells for 3 or 4 lifters, then eight 7 by 7 ft class spots in a rear studio of about 525 sq ft, with 4 ft walkways all the way through. A shower version enlarges the existing bathroom into a shower plus toilet by taking about 67 sq ft from the dumbbell area, and Oscar's contractor already said that wall would have to move for a real shower. A 10-spot version was tried and dropped because it left no room to change. A treadmill version drops to one rack. None of it has a price yet, and the build-out versus marketing split of the money is still the central budgeting call.
What is neededPick the layout, decide shower or no shower, and decide whether a third changing stall fits (a 5 by 5 ft closet-size stall might). Then have it drawn and priced. Oscar can do paint and drywall himself.
Lease Length at Grattan
MediumOpen
The standing preference is a two-year lease, to keep a bigger move possible later. Owners in this search usually ask for five to ten years. Oscar's instinct at Grattan is that if this is the spot, he would stay as long as he can. The tradeoff is real on both sides. A room this size puts a ceiling on how far Apex can grow. And moving later is close to starting a new business, because gym members stay with the gym near them and rarely follow it across the neighborhood. Justin's frame: this space may be the first step in building Apex to its best version, and that is a process.
What is neededGet the owner's lease length in writing. Before agreeing to a term, decide whether Grattan is where Apex stays or the first location, and write down what would trigger a move.
Noise Through the Walls at Grattan
MediumOpen
Justin's guess is that the building is at least 100 years old. Grattan is attached to the corner garage where the art business works, with offices upstairs, and the walls between are drywall, which does not stop sound. A gym plays music and drops weights. Sound goes the other way too, and the neighbors may be the loud ones. It might be a problem or it might not, and it is cheaper to find out before signing.
What is neededAsk the owner who uses the spaces next door and above, what they do, and what hours. Ask whether there have been noise complaints in the building.