mattress firm - capital pacific · mattress retail stores located in california, oregon,...

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Mattress firm JOHN ANDREINI jandreini@capitalpacific.com | (415) 274-2715 CA BRE# 01440360 RICK SANNER rsanner@capitalpacific.com | (415) 274-2709 CA BRE# 01792433 BOB SANNER bsanner@capitalpacific.com | (415) 274-2717 CA BRE# 00869657 freestanding mattress firm 3257 W Jacobs Drive, Bloomington, IN 47404 CHRIS KOSTANECKI ck@capitalpacific.com | (415) 274-2701 CA BRE# 01002010 In conjunction with IN Licensed Broker: Joe Cirillo, Priority One Realty [email protected] | 317-724-5518

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Page 1: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

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

Page 2: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

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

Page 3: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

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

Page 4: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

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

Page 5: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

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

Page 6: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

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

Page 7: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

AReA ReTAILeRs INLcuDe LOwe’s,

KOhL’s, BeD BATh & BeYOND, T.J.

MAxx, PeTsMART, & MIchAeL’s

photos

MATTRESS FIRM | 7

Page 8: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

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

Page 9: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

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

Page 10: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

Bloomington IN Location

Regional Map

INDIANAPOLIS

BLOOMINGTON

CINCINNATI

1 HR 8 MIN51 MILES

33,300 DAILY

37,2

50 D

AIL

Y

MATTRESS FIRM | 10

Page 11: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

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

MATTRESS FIRM | 11

Page 12: Mattress firm - Capital Pacific · mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and ... • Immediate scale with a sustained and profitable multi-brand

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