Mattress Firm Montgomery, AL
Transcription
Mattress Firm Montgomery, AL
offering memorandum. Mattress Firm Montgomery, AL 80,660 AA / AL-2 71 DT Tayl or R d 41,870 AAD T ® 36,550 AADT tChase Loop Eas 670 46, The Shoppes at EastChase DT AA tCh Eas Berry hill Rd y Pkw ase The Plaza at EastChase File Photo $2,387,000 7.75% CAP Rate 12-Year Net Lease ••New Increases Every 5 Years ••10% ••2012 Construction to The Shoppes at Eastchase ••Pad Proximity to Auburn University ••Close Montgomery ••Adjacent to Interstate 85 This property is listed in conjunction with Alabama-licensed real estate broker Thomas E. Newton. www.maffiateam.com Confidentiality & Disclosure Cornish & Carey Commercial Newmark Knight Frank (“Broker”) has been retained on an exclusive basis to market the property described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate. The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma. Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto. Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. Michael Maffia Senior Managing Director 415.445.5144 [email protected] Lic #01340853 Putnam Daily VP/Transaction Manager 415.445.5107 [email protected] Lic #01750064 901 Mariners Island Boulevard, Suite 120 • San Mateo, CA 94404 • Tel 415.373.4060 • Fax 415.373.4060 • www.maffiateam.com Table of Contents •Property Information........................................................................................................................1 •Tenant Information.......................................................................................................................... 2 •About the Area................................................................................................................................ 3 •Site Plan......................................................................................................................................... 4 •Aerials............................................................................................................................................ 5 •Location Maps................................................................................................................................ 7 •Demographics.............................................................................................................................. 10 Property Information Location The property is located on a pad to The Shoppes at EastChase on EastChase Loop adjacent to Boardwalk Burgers in Montgomery, Alabama. Lot Size Approximately 1.32 acres, or 57,500 square feet. Improvements An approximately 5,000 square foot retail building was recently completed for Mattress Firm with turnover to the tenant occurring on August 20, 2012. There is ample parking on site, with approximately 37 parking spaces. Lease Leased to Mattress Firm, Inc., and guaranteed by Mattress Holding Corp., for approximately 12 years from December 18, 2012, to August 31, 2024, at an initial annual rent of $185,000. There are two five-year options to renew the lease. The rent increases by 10% every five years throughout the initial term and as outlined in the option periods. The lease is net, with the tenant responsible for taxes, insurance, and some maintenance. The landlord is responsible for maintaining and replacing the roof and structure. Net Annual Income Years 1-5 6-10 11-12 13-15 (Option 1) 16-17 (Option 1) 18-22 (Option 2) Price $2,387,000 (7.75% Return) Financing The property will be delivered free and clear of permanent financing. Annual Rent $185,000 $203,500 $223,850 $223,850 $232,800 $256,100 Return 7.75% 8.53% 9.38% 9.38% 9.75% 10.73% 1 Tenant Information Since its founding in 1986, Mattress Firm has grown to become one of the largest and most successful specialty bedding companies in the world. The company currently operates and franchises 729 locations (as of January 31, 2012) with plans to continue to grow. In the last three years, Mattress Firm has made six acquisitions, moved into five new markets, and opened more than 200 stores, gaining market share during the economic downturn. The tenant’s parent company, Mattress Firm Holding Corporation, had its initial public offering on November 23, 2011, and is now traded on the Nasdaq stock exchange under the ticker symbol “MFRM.” The offering generated net proceeds of approximately $110 million, after deducting the underwriting discount and estimated offering-related costs. The company used the majority of the net proceeds to repay portions of its outstanding debt. After other uses of net proceeds in the offering, approximately $15 million remained available to the company for working capital and general corporate purposes. Furthermore, in connection with the offering, portions of the company’s outstanding debt were converted into shares of common stock at the $19 per share offering price. As a result of the IPO, the Company reduced its outstanding debt, and related interest accrued thereon, in the aggregate amount of $188.0 million. The IPO was very well received; shares were initially offered at $19 per share and are currently trading at $42.47 per share (as of April 12, 2012). For the fiscal year ended January 31, 2012, Mattress Firm Holding Corporation reported revenue of $703.9 million, representing a 42.5% increase over the previous fiscal year. Net income was $34.4 million and total stockholders’ equity was $224.3 million. On April 10, 2012, Mattress Firm announced the signing of a purchase agreement for all of the equity interests of Mattress Giant for approximately $47 million in cash. The company expects the transaction to be completed during its second fiscal quarter ending July 31, 2012. In a separate transaction, the company acquired 55 stores from Mattress Giant in the Atlanta, St. Louis, and Minneapolis markets in November 2011, and has substantially completed the integration of those stores. Upon closing of the pending acquisition, the company expects to operate approximately 180 additional Mattress Giant stores in Texas and Florida, which represent the two largest states in which Mattress Firm currently operates. The acquisition is expected to advance the company’s market-level profitability model that is centered on the benefits of increasing its “relative market share” in a given market. 2 About the Area Site Information The property is easily accessible from Interstate 85 at Exit 9 (Taylor Road / Alabama Route 271 South) approximately eight miles east of downtown Montgomery. The 2010 traffic counts on Interstate 85 east and west of Exit 9 were 46,670 AADT and 80,660 AADT, respectively. The 2010 traffic count on Taylor Road / Alabama Route 271 south of Interstate 85 was 41,870 AADT (ALDOT). Mattress Firm is located on a pad to The Shoppes at EastChase, a regional outdoor fashion center plaza. Adjacent to The Shoppes is The Plaza at EastChase, a power center. The Shoppes and Plaza opened in 2002 and currently feature more than 730,000 square feet of retail space anchored by Dillard’s, Target, Kohl’s, Ross, Earth Fare, Books-A-Million, World Market, and PetSmart. This burgeoning outdoor shopping center is Montgomery’s most desirable retail location. Tenants in the immediate vicinity of Mattress Firm include Red Robin, Ruby Tuesday, Arby’s, Wendy’s, Chick-fil-A, Sonic, LifeWay, and Chili’s. Auburn University Montgomery or Auburn Montgomery, the metropolitan branch of one of the largest universities in the South, is located in the northwest quadrant of Interstate 85 and Alabama Route 271. The university’s enrollment includes approximately 5,500 undergraduate and graduate students, in addition to more than 10,000 continuing education students. Campus housing is limited, with 85% to 90% of students living off campus. General Overview Montgomery is the second-largest city in the state with a population of 205,764 according to the 2010 U. S. Census. The city is located southeast of the center of the state. Montgomery is nationally known for its many historic and cultural landmarks and events such as the Alabama State Capitol, Dexter Avenue King Memorial Church, First White House of the Confederacy, Montgomery Bus Boycott, Hank Williams Memorial, Alabama War Memorial and Alabama Shakespeare Theater. The city attracted the first electric street car system and Wright Brothers (Orville & Wilbur) first school for powered flight. Today, Montgomery is the home of both Maxwell and Gunter Air Force Bases. Montgomery’s fifteen colleges, universities, and military schools provide world-class educational opportunities. In 2004, Montgomery a large economic development contract when Hyundai Motors Manufacturing Alabama built its $1.4 billion automotive plant. The Montgomery location became Hyundai’s first assembly and manufacturing plant in the United States. It employs over 3,000 team members and currently produces the next generation Sonata sedan and Santa Fe sport utility vehicle. Montgomery has long had large metal fabrication and lumber production sectors. Due to its location along the Alabama River and extensive rail connections, Montgomery has and continues to be a regional distribution hub for a wide range of industries. Today, the city’s Gross Metropolitan Product is $12.15 billion, representing 8.7% of the Gross State Product of Alabama. As of January 2011, Montgomery’s largest employers were Maxwell-Gunter Air Force Base (12,280 employees), the State of Alabama (9,500), Montgomery Public Schools (4,524), Baptist Health (4,300), Hyundai Motor Manufacturing Alabama (2,700), Alfa Insurance (2,568), the City of Montgomery (2,500), Jackson Hospital & Clinic (1,300), Rheem Water Heaters (1,147), and Regions (977). 3 Eas tCh ase Loo p Taylor Road / AL-271 Site Plan am R n o It p 85 O 5,000 SF 4 36,550 AAD T Aerial | North View DT 46,670 AA ® EastCha se Lo 80,660 AADT op se Pkwy Cha t s Ea Tay lor R d/ AL271 ill R d ryh Ber 41,8 70 A ADT The Shoppes at EastChase Tayl or R d / AL-2 71 41,870 AAD T DT 80,660 AA Aerial | West View ® 36,550 AADT tChase Loop Eas 670 46, The Shoppes at EastChase DT AA The Plaza at EastChase y Pkw ase tCh Eas Berry hill Rd Location Map Site Location Map Site Location Map Site Market Profile Demographics Eastchase Loop Montgomery, AL Mattress Firm Montgomery AL 36117 (MONTGOMERY), AL Rings: 1, 3, 5 mile radii Latitude: 32.35932 Longitude: -86.17012 1 mile 3 miles 5 miles 2000 Total Population 3,750 34,613 76,210 2000 Group Quarters 2010 Total Population 280 4,966 533 40,316 2,599 84,836 Population Summary 2015 Total Population 2010-2015 Annual Rate Household Summary 2000 Households 5,407 42,388 87,909 1.72% 1.01% 0.71% 1,308 14,788 31,159 2000 Average Household Size 2010 Households 2.65 1,814 2.30 17,542 2.36 35,565 2010 Average Household Size 2015 Households 2.61 1,991 2.27 18,518 2.31 37,073 2015 Average Household Size 2010-2015 Annual Rate 2.60 1.88% 2.26 1.09% 2.30 0.83% 1,021 9,509 20,468 3.05 1,371 3.04 1,486 3.05 1.62% 2.89 11,165 2.85 11,733 2.84 1.00% 2.94 22,863 2.89 23,643 2.89 0.67% 2000 Housing Units Owner Occupied Housing Units Renter Occupied Housing Units Vacant Housing Units 1,359 86.6% 9.7% 3.7% 15,850 59.2% 34.1% 6.8% 33,318 62.3% 31.2% 6.5% 2010 Housing Units Owner Occupied Housing Units Renter Occupied Housing Units Vacant Housing Units 1,895 84.2% 11.5% 4.3% 19,063 61.1% 31.0% 8.0% 38,447 62.1% 30.4% 7.5% 2015 Housing Units Owner Occupied Housing Units Renter Occupied Housing Units Vacant Housing Units 2,086 83.7% 11.7% 4.6% 20,237 61.6% 29.9% 8.5% 40,298 62.2% 29.8% 8.0% $76,198 $79,750 $78,717 $54,385 $63,161 $63,489 $49,935 $57,216 $58,896 $185,402 $227,606 $257,901 $142,779 $168,457 $189,446 $115,419 $143,215 $162,450 $38,387 $42,069 $42,166 $30,159 $35,593 $36,249 $26,158 $30,572 $31,307 37.4 39.9 40.6 35.1 37.4 37.7 34.9 37.0 37.3 2000 Families 2000 Average Family Size 2010 Families 2010 Average Family Size 2015 Families 2015 Average Family Size 2010-2015 Annual Rate Housing Unit Summary Median Household Income 2000 2010 2015 Median Home Value 2000 2010 2015 Per Capita Income 2000 2010 2015 Median Age 2000 2010 2015 Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. Detail may not sum to totals due to rounding. Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. Esri forecasts for 2010 and 2015. 10 Market Profile Demographics Eastchase Loop Montgomery, AL Mattress Firm Montgomery AL 36117 (MONTGOMERY), AL Rings: 1, 3, 5 mile radii Latitude: 32.35932 Longitude: -86.17012 1 mile 3 miles 5 miles Household Income Base <$15,000 1,334 4.7% 14,652 8.9% 31,065 10.0% $15,000 - $24,999 $25,000 - $34,999 2.0% 7.6% 8.3% 11.6% 10.3% 12.6% $35,000 - $49,999 $50,000 - $74,999 12.1% 22.6% 16.9% 20.8% 17.2% 22.1% $75,000 - $99,999 15.1% 13.4% 12.1% $100,000 - $149,999 $150,000 - $199,999 19.4% 8.6% 12.8% 3.8% 10.5% 2.7% 2000 Households by Income $200,000+ 7.9% 3.5% 2.5% $103,626 $70,662 $63,210 1,813 17,540 35,565 3.4% 1.2% 6.5% 4.7% 7.7% 6.2% $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Average Household Income 4.7% 12.5% 23.9% 17.3% 19.5% 8.1% 9.3% $108,914 9.1% 17.5% 23.6% 13.1% 16.2% 4.7% 4.7% $81,601 9.8% 20.0% 24.5% 12.2% 13.1% 3.3% 3.3% $71,943 2015 Households by Income Household Income Base <$15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Average Household Income 1,991 3.1% 1.1% 4.7% 10.5% 27.6% 15.5% 21.2% 7.5% 8.8% $107,560 18,517 6.0% 4.1% 8.9% 14.6% 28.0% 12.1% 16.9% 4.8% 4.6% $82,742 37,073 7.3% 5.5% 9.8% 16.7% 29.2% 11.4% 13.6% 3.3% 3.2% $73,161 1,161 0.3% 7.2% 28.5% 21.1% 22.5% 14.4% 4.2% 1.7% 9,381 0.8% 23.4% 29.8% 21.3% 14.3% 7.4% 2.2% 0.9% 20,767 6.1% 33.1% 29.3% 14.8% 9.9% 5.0% 1.4% 0.4% $237,816 $182,399 $147,393 134 88.8% 11.2% 5,362 97.8% 2.2% 10,358 97.9% 2.1% $689 $752 $534 $564 $523 $549 Average Household Income 2010 Households by Income Household Income Base <$15,000 $15,000 - $24,999 2000 Owner Occupied Housing Units by Value Total <$50,000 $50,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 - $299,999 $300,000 - $499,999 $500,000 - $999,999 $1,000,000 + Average Home Value 2000 Specified Renter Occupied Housing Units by Contract Rent Total With Cash Rent No Cash Rent Median Rent Average Rent Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest dividends, net rents, pensions, SSI and welfare payments, child support, and alimony. Specified Renter Occupied Housing Units exclude houses on 10+ acres. Average Rent excludes units paying no cash. Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. Esri forecasts for 2010 and 2015. 11 Market Profile Demographics Eastchase Loop Montgomery, AL Mattress Firm Montgomery AL 36117 (MONTGOMERY), AL Rings: 1, 3, 5 mile radii Latitude: 32.35932 Longitude: -86.17012 1 mile 3 miles 5 miles 3,752 34,615 76,212 5.9% 6.2% 6.7% 6.3% 6.7% 6.4% 10 - 14 15 - 24 6.7% 14.6% 6.2% 14.1% 6.6% 14.5% 25 - 34 35 - 44 12.6% 17.2% 16.6% 17.1% 15.9% 16.4% 45 - 54 17.6% 15.5% 14.5% 55 - 64 65 - 74 10.0% 5.4% 8.8% 5.0% 8.7% 5.7% 75 - 84 85 + 3.0% 0.9% 2.8% 0.9% 3.4% 1.0% 77.1% 77.2% 76.1% 4,967 40,316 84,833 6.1% 6.7% 7.3% 12.6% 9.0% 16.4% 16.6% 13.5% 6.9% 3.6% 1.3% 76.5% 6.5% 6.4% 6.5% 13.0% 13.5% 15.5% 15.3% 12.1% 6.4% 3.4% 1.3% 77.0% 6.5% 6.4% 6.4% 13.4% 14.2% 14.5% 14.6% 11.8% 6.6% 4.0% 1.6% 76.9% 5,405 6.0% 6.8% 7.3% 13.2% 9.2% 15.4% 15.9% 12.5% 8.5% 3.8% 1.4% 76.0% 42,385 6.5% 6.5% 6.7% 13.0% 13.6% 15.1% 14.3% 11.4% 8.0% 3.5% 1.3% 76.6% 87,907 6.5% 6.4% 6.5% 13.2% 14.2% 14.4% 13.4% 11.7% 8.1% 4.0% 1.6% 76.8% 46.0% 54.0% 47.8% 52.2% 48.2% 51.8% 46.7% 47.9% 48.4% 53.3% 52.1% 51.6% 47.1% 48.1% 48.6% 52.9% 51.9% 51.4% 2000 Population by Age Total 0-4 5-9 18 + 2010 Population by Age Total 0-4 5-9 10 - 14 15 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85 + 18 + 2015 Population by Age Total 0-4 5-9 10 - 14 15 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85 + 18 + 2000 Population by Sex Males Females 2010 Population by Sex Males Females 2015 Population by Sex Males Females 12 Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. Esri forecasts for 2010 and 2015. Market Profile Demographics Eastchase Loop Montgomery, AL Mattress Firm Montgomery AL 36117 (MONTGOMERY), AL Rings: 1, 3, 5 mile radii Latitude: 32.35932 Longitude: -86.17012 1 mile 3 miles 5 miles 2000 Population by Race/Ethnicity Total 3,751 34,613 76,210 84.1% 12.5% 74.2% 21.3% 69.2% 27.0% American Indian Alone Asian or Pacific Islander Alone 0.2% 2.5% 0.2% 2.6% 0.3% 1.9% Some Other Race Alone Two or More Races 0.2% 0.5% 0.6% 1.1% 0.5% 1.1% Hispanic Origin 0.9% 1.8% 1.7% Diversity Index 29.0 42.5 46.6 White Alone Black Alone 2010 Population by Race/Ethnicity Total 4,966 40,316 84,837 75.4% 19.5% 64.8% 29.0% 59.7% 35.0% 0.2% 3.6% 0.2% 3.3% 0.3% 2.5% 0.4% 0.9% 2.0% 41.6 1.0% 1.6% 3.4% 52.8 0.9% 1.6% 3.1% 54.9 2015 Population by Race/Ethnicity Total White Alone Black Alone American Indian Alone Asian or Pacific Islander Alone Some Other Race Alone Two or More Races Hispanic Origin Diversity Index 5,406 70.5% 23.4% 0.2% 4.2% 0.5% 1.1% 2.7% 47.6 42,388 60.3% 32.5% 0.2% 3.8% 1.2% 1.9% 4.3% 56.7 87,909 55.4% 38.5% 0.3% 2.9% 1.0% 1.8% 3.9% 57.8 2000 Population 3+ by School Enrollment Total Enrolled in Nursery/Preschool Enrolled in Kindergarten Enrolled in Grade 1-8 Enrolled in Grade 9-12 Enrolled in College Enrolled in Grad/Prof School Not Enrolled in School 3,637 2.8% 1.8% 10.4% 5.1% 9.9% 2.9% 67.1% 32,823 2.4% 1.3% 10.6% 5.1% 7.7% 3.2% 69.7% 72,901 2.2% 1.3% 11.5% 5.6% 7.1% 2.7% 69.7% 3,345 0.8% 1.4% 13.2% 17.4% 5.3% 38.8% 23.1% 27,200 1.0% 3.2% 16.3% 21.2% 6.2% 31.3% 20.9% 57,015 1.6% 4.6% 19.1% 23.1% 6.7% 27.1% 17.9% White Alone Black Alone American Indian Alone Asian or Pacific Islander Alone Some Other Race Alone Two or More Races Hispanic Origin Diversity Index 2010 Population 25+ by Educational Attainment Total Less Than 9th Grade 9th to 12th Grade, No Diploma High School Graduate Some College, No Degree Associate Degree Bachelor's Degree Graduate/Professional Degree Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from different race/ethnic groups. Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. Esri forecasts for 2010 and 2015. 13