mattress firm - capital pacific · mattress retail stores located in california, oregon,...
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Mattress firm
John [email protected] | (415) 274-2715 CA BRE# 01440360
rick [email protected] | (415) 274-2709 CA BRE# 01792433
BoB [email protected] | (415) 274-2717 CA BRE# 00869657
freestanding mattress firm3257 W Jacobs drive, Bloomington, in 47404
chriS [email protected] | (415) 274-2701 CA BRE# 01002010
In conjunction with IN Licensed Broker: Joe Cirillo, Priority One Realty [email protected] | 317-724-5518
rentABle SF . . . . . . . . . . . . . . . 4,156SF
Price Per SF . . . . . . . . . . . . . . . $530.25
lAnd AreA . . . . . . . . . . . . . . . 0.50 Acres
YeAr BUilt . . . . . . . . . . . . . . . 2015
PRICE: $2,203,704CAP: 6.75%
PROperty Summary
locAtion highlightS More than 106,000 people within a 5-mile radius with growth projections in 1, 3, & 5-mile radiuses
Over 33,000 VPD on W. 3rd Street.
Adjacent retailers include Lowe’s, Kohl’s, Bed Bath & Beyond, T.J. Maxx, PetSmart & Michael’s
Home of the University of Indiana - Over 42,000 students enrolled which are not included in the demographics. There are an additional 8,000 faculty members and employees
tenAnt highlightSMattress Firm is publicly traded on NASDAQ (MFRM) - $1.2 billion in 2014 revenues
Mattress Firm is the largest bedding retailer in the United States and recently acquired Sleep Train for $425 million in cash and stock - projected 2015 sales are $2 billion for new company (see page 8)
leASe highlightSBrand new 11 year lease with two 5-year options
10% rental increases throughout the base term and option periods
No significant use restrictions for this property
Landlord responsible for roof and structural components
Tenant responsible for repairs, maintenance, and replacement of all interior non-structural components, and HVAC
MATTRESS FIRM | 2
aerial
W 3
rd S
treet
W 3
rd S
treetW
Bloomfield Road
45
48
4537
45
Highland Park
Elementary
WHITEHALL CROSSING
WHITEHALL PLAZA
®
BLOOMINGTON CITY CENTER
45
33,3
30 D
AIL
Y
37,250 DAILY
MATTRESS FIRM | 3
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.
income & expense
[ surrounding retail]
PRICE $2,203,704
Price Per Square Foot: $530.25
Capitalization Rate: 6.75%
Total Rentable Area (SF): 4,156
Lot Size (Acres): 0.50
Year Built: 2015
STABILIZED INCOME Per Square Foot
Scheduled Rent $35.79 $148,750
Effective Gross Income $35.79 $148,750
LESS Per Square Foot
Taxes NNN $0.00
Insurance NNN $0.00
Total Operating Expenses $0.00
EQUALS NET OPERATING INCOME $148,750
MATTRESS FIRM | 4
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.
rent roll
tenAnt inFo leASe terMS rent SUMMArY
Tenant Name Sq. Ft. Term Current
RentMonthly
RentYearly Rent
Monthly Rent/FT
Yearly Rent/FT
Mattress Firm 4,156 1 5 $148,750 $11,083 $132,992.00 $2.67 $32.00
6 11 $12,191 $146,291.20 $2.93 $35.20
Option 1 12 16 $13,410 $160,920.32 $3.23 $38.72
Option 2 17 21 $14,750 $177,004.04 $3.55 $42.59
Totals: 4,156 $148,750 $11,083 $132,992.00 $2.67 $32.00
MATTRESS FIRM | 5
Site PLan
33,330 DAILY
13,1
35 D
AIL
Y
n Jacob drive
n g
ates
driv
e
W 3rd Street48
off r
amp
45
NOT A PART
NOT A PART
MATTRESS FIRM | 6
AReA ReTAILeRs INLcuDe LOwe’s,
KOhL’s, BeD BATh & BeYOND, T.J.
MAxx, PeTsMART, & MIchAeL’s
photos
MATTRESS FIRM | 7
ABOUT MATTRESS FIRMMattress Firm currently operates over 2,000 locations across 36 states nationwide, which makes it the largest US bedding retailer. Mattress Firm offers conventional mattresses; specialty mattresses, including viscoleastic foam mattresses and YuMe sleep system, a revolutionary sleep system made of foam produced from coconut oil; and bedding related accessories comprising bed frames, mattress pads, and pillows. The company’s stores carry a broad assortment of national mattress brands and its exclusive brands. In 2011, Mattress Firm Holding Corp went public and has shown very strong sales and profit growth.
nUMBer oF eMPloYeeS 3,8612014 reVenUe 1.2 Million+nUMBer oF locAtionS 2,000+
tenant overview
MATTRESS FIRM | 8
Mattress Firm Completes Acquisition of Sleep Train, Solidifying Its Position as the Largest Border to Border, Coast to Coast Multi-Brand Bedding Specialty Retailer in the United States
October 20, 2014
HOUSTON--(BUSINESS WIRE)--Mattress Firm Holding Corp. NASDAQ: MFRM), the leading specialty retailer of mattresses and accessories in the United States, announced the completion of its acquisition of all of the outstanding equity interests in The Sleep Train, Inc., (“Sleep Train”), the leading West Coast based bedding specialty retailer, for an aggregate purchase price of $425 million, subject to working capital and other customary adjustments, along with the assumption of certain additional liabilities totaling approximately $15 million. The Company expects to receive future annual cash income tax benefits of approximately $11 million over the next 15 years from deductible tax basis goodwill generated from the transaction, subject to the Company’s ability to generate future taxable income. Sleep Train operates approximately 310 specialty mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and Hawaii, and reported net sales of approximately $471 million for the 2013 fiscal year.
The Company also announced today that it entered into a new senior secured credit facility with Barclays Bank PLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, and UBS Securities LLC, as joint bookrunning managers and joint lead arrangers. The senior secured credit facility is comprised of (i) an asset based revolver of $125 million that includes a sublimit for letters of credit and swingline loans, subject to certain conditions and limits and (ii) a term loan B borrowing of $720 million. Approximately $49 million of proceeds were drawn under the asset based revolver at closing. The asset based revolving loan will mature on the fifth anniversary of the closing, and the term loan B borrowing will mature on the seventh anniversary of the closing. The Company’s existing credit facility, including its outstanding term loan borrowing, was terminated upon the closing of the transaction.
In The News
FORTIFIES MATTRESS FIRM AS THE LEADING MATTRESS SPECIALTY RETAILER IN THE UNITED STATES
• Combined Business Operates Over 2,000 Mattress Specialty Retail Stores and 70 Distribution Centers Across 40 States
• Projected revenues for the combined companies expected to be around $2 billion
• Expected Mid-Single Digit EPS Percentage Accretion, on GAAP Basis Before One-Time Costs, in Fiscal 2015
• Estimated $20 Million in Annual Run Rate Synergies by Fiscal 2017
• Expands footprint into the West Coast, including key strategic markets
• Adds over 310 retail store locations in major markets in California, Washington, Oregon, Nevada, Idaho and Hawaii from a leading market share player with limited overlap
• Provides customers with great value, convenience and choice
• Generates significant synergistic opportunities
• Over $20 million of identifiable cost and revenue synergy potential by fiscal year 2017
• Adds high-volume, established locations with a strong and experienced leadership team
• 29 year history of well-positioned, long-term leases in “hard to enter” trade areas
• Immediate scale with a sustained and profitable multi-brand organization
KEY P0INTSMattReSS fiRM acquiReS SLeeP tRain
MATTRESS FIRM | 9
Bloomington IN Location
Regional Map
INDIANAPOLIS
BLOOMINGTON
CINCINNATI
1 HR 8 MIN51 MILES
33,300 DAILY
37,2
50 D
AIL
Y
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BlooMington, in oVerVieW
Bloomington is the county seat of Monroe County in the southern region of Indiana. According to the Monroe County History Center, Bloomington is known as the “Gateway to Scenic Southern Indiana.”
Bloomington is a city of contrasts, which provides residents and visitors with a wide variety of experiences to enjoy. It’s a tight-knit community where neighbors know each other, but one with a diverse and rich culture due to the international appeal of Indiana University. Bloomington offers urban amenities like a thriving arts scene, while remaining in the hilly, forested landscape of south-central Indiana. It’s a place that offers exciting Big Ten sports and incredible theater and music from local and national acts.
With a population of 80,405 it is a unique established community which is also invites thousands of students locally and nationally to study at its very own Indiana University.
Bloomington is the principal city within the Metropolitan area of Indiana, and conveniently located between the state park and capitol. The city has established itself as an important employment hub, hosting a variety of educational facilitates and a solid base of small businesses to provide growth in both the employment and economic sector.
2013 hOusehOLD INcOMes
POPuLATION
Employer # of Employees*Indiana University 7,000Cook Group, Inc. 3,330Indiana University Health 2,246Monroe County Comuinty Schools 1,882*Approximate
TOP eMPLOYeRs IN
1-Mile 3-Mile 5-Mile
2010 5,741 46,906 104,6582015 5,724 47,748 106,5992020 5,775 49,029 109,368
1-Mile 3-Mile 5-Mile
Average $36,845 $37,086 $49,148
location & demographics
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the cAPitAl PAciFic exPerience - oUr dAilY coMMitMent to oUr clientS
[ www .capitalPacific .com ]
John [email protected] | (415) 274-2715 CA BRE# 01440360
chriS [email protected] | (415) 274-2701 CA BRE# 01002010
Copyright © 2015 [Capital Pacific Real Estate Brokerage Company]
rick [email protected] | (415) 274-2709 CA BRE# 01792433
BoB [email protected] | (415) 274-2717 CA BRE# 00869657
A unique HUMANRESULTS-DRIVEN client experience
In conjunction with IN Licensed Broker: Joe Cirillo, Priority One Realty [email protected] | 317-724-5518