Mattress Firm Super Center

Transcription

1 Mattress Firm Super Center Metro Area rare NNN lease [ ] over 112,000 vehicles per day average HOUSEHOLD incomes over $71k 1255 E. Mall Drive, Holland, OH Click for Map Top Performing Location strong Retail Corridor rental increase in 2019

2 PROperty Summary the SUBJECT PROPERTY IS Absolute NNN, AND is one of the top performing Mattress Firms in the region. Mattress Firm is positioned on a dominant retail corridor, 11 miles west of the city center of Toledo. The property is surrounded by national retailers including Walmart Super Center, Sam s Club, Target, Kroger and many more. There is a rental increase in Because of the strong location, the tenant chose this to be a super center, which is about twice the size of the standard Mattress firm. PRICE: $4,260,000 CAP: 7.4%* *The rental increase in mid 2019 will increase the yield to 7.69% Rentable SF...19,230 SF land area Acres YEAR BUILT Current Rent....$16/SF Listing Team Contact Info RICK SANNER rsanner@capitalpacific.com (415) CA BRE# aaron susman asusman@capitalpacific.com (415) CA BRE# Listed in conjunction with OH Licensed Broker: Tim Albro, Crest Commercial Realty Ext. 104 Tim.albro@crestrealtyohio.com Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. mattress firm 2

3 core characteristics strong Retail Market The subject property is strategically positioned within the epicenter of the primary retail corridor in Holland, along Mall Road. The asset is surrounded by a dense mix of nationally recognized retailers, including Sam s Club, Walmart Supercenter, Target, Best Buy, Guitar Center, TJ Maxx, Kroger and many more. Additionally, the location boasts combined traffic counts in excess of 112,000 VPD. Exceptionally well performing store Prior to construction, the tenant elected to increase the size from 12,000 SF to 19,230 SF due to anticipated market demand, which has proven to be true. This is one of the top performing Mattress Firms in the region and serves as a distribution hub for the tenant. This is a key location for the tenant because the distribution center services five other stores, which increases the likelihood that the tenant will exercise their options. Lease Highlights This build-to-suit location opened in June of 2014 with a 10-year absolute NNN lease, leaving nearly 8 years of term remaining. There are increases in the base term and two 5-year renewal options. tenant Highlights The franchisee at this location is a highly-successful operator, with 15 Mattress Firm locations, and has been a franchisee for over 20 years. about mattress firm Mattress Firm is the world s #1 mattress retailer. Mattress Firm has made several major acquisitions in recent years, such as Sleep Train in 2014 and Sleepy s in February 2016, growing its footprint and further solidifying its position as the top mattress retailer in the US. 139,000+ Residents with average household incomes of over $71k within a 5-mile radius mattress firm 3

4 aerial Site benefits from combined traffic counts in excess of 112,000 VPD Hill Avenue 2 rive E Mall D 63,860 DAILY S McCord Road N Mall Drive S Reynolds Road SPRINGFIELD COMMONS S Byrne Road Hill Avenue rt Airpo way High SOUTHLAND SHOPPING CENTER AIRPORT SQUARE 48,600 DAILY 2 SPRING MEADOWS PLACE SD SOUTH TOLEDO GOLF CLUB BRANDYWINE COUNTRY CLUB 475 g ur d sb Roa rry d Pe llan Ho REYNOLDS PLAZA 80 etro it Av HEATHER DOWNS COUNTRY CLUB enu e ORCHARD CENTRE TOLEDO mattress firm 4

5 income & expense PRICE $4,260,000 Price Per Square Foot: $ Capitalization Rate: 7.40% Total Rentable Area (SF): 19,230 Lot Size (AC): 2.83 STABILIZED INCOME Per Square Foot Scheduled Rent $16.39 $315,180 Effective Gross Income $16.39 $315,180 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $315,180 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. mattress firm 5

6 rent roll RENTAL INCREASES TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT Mattress Firm Franchisee 19,230 07/01/14 06/30/19 $315,180 $26,265 $315,180 $1.37 $ /01/19 06/30/24 $27,868 $334,416 $1.45 $17.39 Option 1 07/01/24 06/30/29 $30,655 $367,860 $1.59 $19.13 Option 2 07/01/29 06/30/34 $33,720 $404,640 $1.75 $21.04 Totals: 19,230 $315,180 $26,265 $315,180 $1.37 $16.39 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. mattress firm 6

7 site plan Site Plan Key Parcel outline: Land Area: 2.83 AC Building Area: 19,230 sf Ingress/Egress: E Mall Drive retail store 12,000SF warehouse section 7,230 sf 63,860 DAILY 475 N Mall Drive This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. mattress firm 7

8 tenant overview About mattress firm Mattress Firm (NASDAQ: MFRM) currently operates over 3,546 locations across 48 states nationwide, making it the largest bedding retailer in the country, with the acquisition of Sleepy s in February 2016, sales for the company in 2016 will likely approximate $3.8 billion. Mattress Firm offers conventional mattresses, specialty mattresses, and bedding related accessories (bed frames, mattress pads, pillows). The stores carry a broad assortment of national mattress brands and exclusive brands. In 2011, Mattress Firm went public and has shown very strong growth since. By 2017, all stores in the system (including those from the Sleep Train and Sleepy s acquisitions) will be branded as Mattress Firm. This will further enhance the national visibility and recognition of the brand name Mattress Firm. NASDAQ MFRM NET worth $435.5 Million NET income $44.3 Million NET sales $3.8 Billion About the tenant The franchisee of this location is a highly-successful operator with 15 Mattress Firm locations, and has been a franchisee for over 20 years. The recent Mattress Firm acquisition of Sleepy s does not affect the franchise because Sleepy s does not have stores in the state of Ohio. The warehouse portion at the subject location serves as the distribution hub for five of the franchisees stores in the area. The franchisee is very pleased with the store and states that it is the top performing location within the franchise. The franchise is growing by adding two locations every year. The franchisee states that they have territorial exclusives for all its stores including the subject, this means that corporate stores or other franchises cannot open in this area. mattress firm 8

9 merger On August 7, 2016 Steinhoff International Holdings announced that it had entered into a definitive merger agreement with Mattress Firm under which Steinhoff will acquire Mattress Firm for $64.00 per share. This represents a total value of $3.8 billion and a 115% premium to Mattress Firm s previous $29 per share price. The acquisition will create the world s largest multi-brand/multi-national mattress retail distribution network. Steinhoff International Holdings has operations in 30 countries, dealing primarily with furniture and household goods, sold under 40 different brands. Steinhoff has an investment grade rating from Moody s that is expected to be maintained after the merger. Steinhoff is a public company listed on the Frankfurt Germany Stock Exchange. COMPANY REVENUE NET INCOME LOCATIONS Steinhoff quick facts 6,500 locations in 30 countries $9.84 B revenue $9.84 Billion $ Million 6,500 $3.8 Billion $65 Million 3,500 COMBINED ENTITY $13.64 Billion $1.025 Billion 10,000 *2015 Annual report figures converted to USD **Estimated figures after Sleepy s acquisition #1 Largest multi-brand/multinational mattress retail distrubtion network 40 different brands mattress firm 9

10 location & demographics Population 1-Mile 3-Mile 5-Mile ,510 58, ,901 Holland, OH Overview Holland is located 11 miles from the Toledo city center and within the Toledo MSA of 650,000 residents. One of the primary employers for residents of Holland is the University of Toledo. The university boasts about 23,000 students and academic staff of nearly 2,300. The university also operates a 450-acre Health Science campus, known as the University of Toledo Medical Center, 5 miles from the subject property. Holland is located in Northwest Ohio, is in close proximity to other major metro areas of the Midwest including Detroit, which is just one hour north. The subject property is located 7 miles from the Toledo Airport Household incomes 1-Mile 3-Mile 5-Mile Average $58,520 $64,686 $71,309 Median $42,196 $44,900 $50,686 Top Employers in toledo ProMedica Health Care Mercy Health Partners Bowling Green State University University of Toldeo toledo holland 22 min 11 miles 63,860 DAILY US HWY I ,600 DAILY Airport HWY mattress firm 10

11 A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ ] rick Sanner rsanner@capitalpacific.com (415) CA BRE# aaron Susman asusman@capitalpacific.com (415) CA BRE# Listed in conjunction with OH Licensed Broker: Tim Albro, Crest Commercial Realty Ext. 104 Tim.albro@crestrealtyohio.com Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. chris kostanecki chris peters dave lucas zandy smith jack navarra zeb ripple john andreini joe caccamo gregg steele karla zens [ Copyright 2016 Capital Pacific ]