Under LOI - Acquiring an indoor Pickleball business

Hi, currently under LOI on a 30,000+ sq ft climate-controlled indoor pickleball facility here in New Jersey with 13 courts, grand opened for a full year. Here are the key deal terms: 📋 The Deal: • $1.2M buildout cost, Revenue $1.1M, Net income $150,000 • Lease: $400,000/year (~$13.33/sqft) • Purchase option of real estate: $275/sqft (~$8.25M at 30K sqft) • 13 pickleball courts, fully climate controlled • Located in New Jersey We're working through our underwriting now and want to gut-check a few things with people who've been in the space: ❓ Questions for the community: 1. For those who operate or have evaluated indoor pickleball facilities — does $400K/year on 30K+ sqft feel reasonable for NJ, or are we leaving room on the table in negotiations? 2. At $275/sqft, is the purchase option worth exercising down the road, or would you stay a tenant and deploy that capital into operations/marketing? 3. What's a realistic court utilization rate to underwrite in year 1 vs. year 3 for a market like New Jersey? 4. Any operators here who can share what ancillary revenue streams (memberships, lessons, leagues, F&B, pro shop) have moved the needle most? 5. Biggest surprises or landmines we should pressure-test before we sign? We believe in the market — pickleball demand in the Northeast is real — but we want to make sure we're not missing something. Would genuinely appreciate perspectives from operators, investors, or anyone who's been through a similar deal. Thank you!