mattress firm super center

Mattress Firm Super Center [ www.CapitalPacific.com ]
Metro Area
rare NNN lease
over 112,000 vehicles per day
average HOUSEHOLD incomes over $71k
1255 E. Mall Drive, Holland, OH 43528
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or Ma
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• Top Performing Location
• strong Retail Corridor
• rental increase in 2019
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 2019.
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
Listing Team
Contact Info
RICK SANNER
[email protected] | (415) 274-2709
CA BRE# 01792433
aaron susman
[email protected] | (415) 481-0377
CA BRE# 01961568
Listed in conjunction with OH Licensed Broker:
Tim Albro, Crest Commercial Realty
937-222-1600 Ext. 104 | [email protected]
Capital Pacific collaborates. Click Here to
meet the rest of our San Francisco team.
land area . . . . . . . . . . . . . . . . 2.83 Acres
YEAR BUILT . . . . . . . . . . . . . . . . 2014
Current Rent. . . . . . . . . . . . . $16/SF
mattress firm | 2
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
aerial
Site benefits from combined traffic counts in excess of 112,000 VPD
20
475
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
90
20
24
REYNOLDS PLAZA
80
etro
it Av
HEATHER DOWNS
COUNTRY CLUB
enu
e
ORCHARD CENTRE
80
2
90
TOLEDO
mattress firm | 4
income & expense
PRICE $4,260,000
Price Per Square Foot:
Capitalization Rate:
Total Rentable Area (SF):
Lot Size (AC):
STABILIZED INCOME
Scheduled Rent
Effective Gross Income
LESS
Taxes
Insurance
Total Operating Expenses
EQUALS NET OPERATING INCOME
$221.53
7.40%
19,230
2.83
Per Square Foot
$16.39
$16.39
$315,180
$315,180
Per Square Foot
NNN
NNN
NNN
$0.00
$0.00
$0.00
$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
rent roll
RENTAL
INCREASES
TENANT INFO
LEASE TERMS
Tenant Name
Sq. Ft.
Mattress Firm Franchisee
19,230
Totals:
Term
RENT SUMMARY
Current
Rent
Monthly
Rent
Yearly
Rent
Monthly
Rent/FT
Yearly
Rent/FT
$315,180
$26,265
$315,180
$1.37
$16.39
07/01/14
06/30/19
07/01/19
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
$26,265
$315,180
$1.37
$16.39
19,230
$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 | 6
site plan
Site Plan Key
Parcel outline:
Land Area:
2.83 AC
Building Area: 19,230 sf
warehouse
section
7,230 sf
retail store
12,000SF
63,860 DAILY
E Mall Drive
Ingress/Egress:
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
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.
www.mattressfirm.com
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
merger
Steinhoff quick facts
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.
www.steinhoffinternational.com
COMPANY
COMBINED ENTITY
locations in 30
countries
$9.84 B
revenue
REVENUE
NET INCOME
$9.84 Billion
$960.32 Million
6,500
#1 Largest
$3.8 Billion
$65 Million
3,500
$13.64 Billion
$1.025 Billion
10,000
multi-brand/multinational mattress
retail distrubtion
network
*2015 Annual report figures converted to USD
**Estimated figures after Sleepy’s acquisition
LOCATIONS
6,500
40
different brands
mattress firm | 9
location & demographics
Population
2016
1-Mile
3-Mile
5-Mile
5,510
58,130
139,901
1-Mile
3-Mile
5-Mile
$58,520
$42,196
$64,686
$44,900
$71,309
$50,686
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.
2016 Household incomes
Average
Median
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.
Top Employers in toledo
The subject property is located 7 miles from the Toledo Airport.
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-475
48,600 DAILY
Airport HWY
mattress firm | 10
A unique HUMAN
RESULTS-DRIVEN
client experience
rick Sanner
The capital pacific experience - our daily commitment to our clients
[ www.CapitalPacific.com ]
[email protected] | (415) 274-2709
CA BRE# 01792433
aaron Susman
[email protected] | (415) 481-0377
CA BRE# 01961568
Listed in conjunction with OH Licensed Broker:
Tim Albro, Crest Commercial Realty
937-222-1600 Ext. 104 | [email protected]
Capital Pacific collaborates. Click Here to
meet the rest of our San Francisco team.
chris kostanecki
zeb ripple
chris peters
john andreini
dave lucas
joe caccamo
zandy smith
gregg steele
jack navarra
karla zens
[ Copyright © 2016 Capital Pacific ]