Walking inside a vacant Rite Aid, Tracey Swanitz and Christy Deutschle described their vision of turning the former drugstore into a world-class indoor pickleball facility.
They scanned the room, pointing to various areas of the gutted store.
“In the center, we’ll have six courts,” Swanitz told the Business Journal during a tour of the property. “Over there will be a pro shop. We’re also going to have a conference or party room for rent for parties or stuff like that and a mezzanine in the back with a viewing deck so people can hang out while they wait for their next game.”
Swanitz and her sister and business partner, Deutschle, are betting that “pickleball is the next big thing” while repurposing vacant big-box stores.
The two sisters, former owners of a real estate appraisal company, are converting a 27,000-square-foot former Bed Bath & Beyond in Rancho Santa Margarita and the 19,000-square-foot former Rite Aid in Fountain Valley into two The Picklr franchises: massive indoor pickleball courts and social complexes. The pair, who are leasing both properties, are planning to open them this summer.
The sisters are investing an estimated $3 million—or $1.5 million each—to convert both properties into indoor pickleball courts.
“We were looking for a new business,” said Deutschle, an avid pickleball player. “We had shut down our previous business due to the market and some other stuff, so I told my sister, ‘Let’s do something fun.’”
The expansion comes amid explosive growth in pickleball in Orange County and highlights a broader shift in retail, as landlords look to backfill large, big-box vacancies left by struggling retailers with fitness, entertainment and sports tenants that can fill the space and drive foot traffic.
The growth of pickleball has attracted serious financial backers, as well as its share of controversies, in Orange County.
The Tennis & Pickleball Club Newport Beach (TTC) in 2025 finished construction to convert six tennis courts into 22 pickleball courts at the Hyatt Regency Newport Beach’s tennis courts. The estimated $3 million project, dubbed the TTC Newporter, faced opposition from tennis fans.
The City of Irvine is planning to spend $25 million to develop a pickleball complex in the Great Park. Pickleball will also be available at the 110,000-square-foot Irvine Fieldhouse, which is currently under construction in the Irvine Business Complex.
The city paid $98 million to buy the 7.3-acre lot at 17300 Red Hill Ave. for the facility that will also feature courts for volleyball, basketball and badminton.
In February, Irvine opened eight pickleball courts at the Mike Ward Community Park.
Rise of Pickleball
Deutschle and Swanitz say that pickleball is one of the fastest-growing sports in the U.S.
The numbers back it up.
Pickleball, a paddle sport that blends elements of tennis, badminton and table tennis, is played on a badminton-sized court, indoors or outdoors, with a lowered net. Singles or doubles players use solid paddles to volley a perforated plastic ball, like a whiffle ball, back and forth.
Due to its smaller court and slower ball speed, the game allows players of all ages to play, said Deutschle.
“It’s one of the few sports where a 10-year-old and an 80-year-old can play together,” she said. “That community aspect is what really drives demand.”
The 2025 Sports, Fitness, and Leisure Activities report, which tracks participation in fitness and leisure activities, estimates that 19.8 million players played pickleball in 2024, a nearly 46% increase from 2023.
That rapid rise has fueled demand for dedicated facilities; at least 2,300 were added across the U.S. last year, according to the USA Pickleball Association, bringing the total nationwide to 18,258.
Professional pickleball leagues have since sprouted, where top-tier players are earning more than $1 million to compete.
Big Box Stores
Since most pickleball games in Orange County are played outdoors, Deutschle said there is a need for indoor locations that are climate- and noise-controlled. The noise of pickleball games is a big complaint among neighbors.
Finding a suitable indoor space proved to be one of the biggest hurdles.
“You have to have specific ceiling heights, column spacing and enough square footage to fit multiple courts,” said Deutschle. “We looked at 25 to 30 sites, and a lot of deals fell apart during lease negotiations.”
Vacant retail ultimately emerged as the most viable option, said Swanitz.
Big-box layouts offer open floor plans and ample parking, which align well with sports uses, as well as other anchor stores that can drive traffic.
Swanitz said retrofitting an industrial building was also costlier.
Industrial properties, the duo said, often require extensive upgrades, particularly for climate control.
Lease rates, they said, were practically the same in Orange County.
“With industrial, you’re essentially starting from scratch with insulation and HVAC,” said Deutschle. “Retail spaces already have much of that infrastructure in place.”
The adaptive reuse also benefits landlords, many of whom have struggled to fill large-format vacancies following national retail downsizing.
Entertainment and fitness tenants, such as Round 1 and pickleball operators, are increasingly attractive because they generate repeat visits and longer dwell times, boosting surrounding businesses.
The Picklr
The Picklr is a rapidly expanding Utah-based indoor pickleball franchise, with over 500 new clubs and 5,000 courts currently under development across North America. There are eight The Picklr franchises either open or in development in California.
The Rancho Santa Margarita site at 22235 El Paseo will feature nine indoor courts, while the smaller Fountain Valley location at 17904 Magnolia St. will house six courts.
Both locations will also feature a pro shop, a TRX workout area, private event spaces, an AI training machine, lockers, showers and a viewing area.
Swanitz said she expects a steady stream of players throughout the day at the Fountain Valley location, with operating hours planned from early morning to late evening. The membership cost is still to be determined, she said.
The Rancho Santa Margarita location is slated to open in late June and the Fountain Valley location in late July.
For Deutschle and Swanitz, the move into retail centers also opens the door for partnerships with neighboring tenants. A Sprouts Farmers Market anchors the retail center.
There’s also a Dutch Bros, a Dollar Tree, as well as a Subway and a Union Jack Fish and Chips.
The duo said the goal is also to create a built-in ecosystem that supports both the pickleball club and the surrounding businesses.
“This isn’t just about courts,” said Deutschle. “It’s about building a place where people want to spend time.”
