mattress firm [ representative photo ] NEW Construction Mattress Firm 11-Year Corporate Net Lease [ www.capitalpacific.com ] 2174 Snelling Ave N., Roseville, MN 55113
PROperty Summary NEW Freestanding Mattress Firm Ideally situated IN front of Super Target (the first Target Store ever Opened) in the highly desirable Minneapolis-St. Paul MSA. PRICE: $2,600,000 CAP: 6.7% Rentable SF...3,650 SF Price per SF...$712.33 YEAR BUILT...2016 Current Rent...$47.83/SF Listing Team Contact Info Chris Kostanecki ck@capitalpacific.com (415) 274-2701 CA BRE# 01002010 Zeb ripple zripple@capitalpacific.com (415) 274-2702 CA BRE# 01242540 chris peters cpeters@capitalpacific.com (415) 274-2703 CA BRE# 01339983 jack navarra jnavarra@capitalpacific.com (415) 274-2705 CA BRE# 01909630 Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. [ actual store ] mattress firm 2
core characteristics Well located in a dense retail market in the Minneapolis-St. Paul MSA, the subject property is a newly constructed freestanding Mattress Firm. The offering also includes a 150 square foot equipment room currently occupied by CenturyLink (see page 6 for more details). Outstanding Retail market Pad to the first Target store ever opened, the subject property is located in a dense retail trade area with several national retailers nearby. Directly south of the property is the HarMar Mall, a Cub Foods and Marshalls anchored enclosed mall. Additionally, the site is less than half a mile from the Rosedale Center, a 1.1 million square foot regional mall that draws more than 14 million visitors annually. High Traffic location The subject property is ideally situated along Snelling Avenue, a heavily trafficked north-south corridor with average daily traffic counts in excess of 43,000 vehicles per day. Located near the intersection of Snelling Ave and County B Road, the site features excellent visibility and a newly constructed monument sign. STrong Demographics In addition to strong traffic counts, the site benefits from excellent population density, with 336,000 people within a 5-mile radius, and solid average household incomes of $74,000 in a 1-mile radius. 336,000 Residents within a 5-mile radius National Tenant 11-Year Net lease Mattress Firm s lease features 10% rental increases every five years through the primary term and in each of the three 5-year options. The lease is NN with minimal landlord responsibilities. The seller will transfer the in-place warranties to the purchaser. These will include a 1-year warranty from the general contractor and a 10-year roof warranty. corporate credit tenant Mattress Firm is the world s #1 mattress retailer, and has an S&P credit rating of B+. Mattress Firm has made several major acquisitions in recent years, such as Sleep Train in 2014 and Sleepy s in 2016, growing their footprint and further solidifying their position as the top mattress retailer in the US. [ representative photo ] mattress firm 3
aerial ROSEDALE COMMONS Fairview Avenue N ROSEDALE MARKETPLACE CROSSROADS CENTER OF ROSEVILLE 51 County Road B2 W Hamline Avenue N Snelling Avenue subject property is across from the first target ever opened 36 MINNEAPOLIS ROSEDALE CENTER County Road B2 W ROSEVILLE CEDARHOLM GOLF COURSE Roseville Area High School 36 Hamline Avenue N 36 County B Road W County B Road W 7,800 DAILY Snelling Avenue Hand in Hand Christian Montessori Fairview Avenue N Brimhall Elementary HARMAR MALL 40,000 DAILY 51 mattress firm 4
income & expense PRICE $2,600,000 Price Per Square Foot: $712.33 Capitalization Rate: 6.7% Total Rentable Area (SF): 3,650 Lot Size (AC): 0.17 STABILIZED INCOME Per Square Foot Scheduled Rent $47.83 $174,590 Effective Gross Income $47.83 $174,590 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 NNN Reserve ($0.22) ($790.00) Total Operating Expenses ($0.22) ($790.00) EQUALS NET OPERATING INCOME $173,800 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. [ surrounding retail ] mattress firm 5
rent roll 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 3,500 1 5 $164,990 $13,749 $164,990 $3.93 $47.14 6 10 $15,126 $181,510 $4.32 $51.86 11 $16,637 $199,640 $4.75 $57.04 Option 1 12 16 $16,637 $199,640 $4.75 $57.04 Option 2 17 21 $18,302 $219,625 $5.23 $62.75 Option 3 22 26 $20,134 $241,605 $5.75 $69.03 Century Link 150 06/01/10 05/31/20 $9,600 $800 $9,600 $5.33 $64.00 Totals: 3,650 $174,590 $14,549 $174,590 $3.99 $47.83 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. [ directly across from target ] mattress firm 6
site plan NOT A PART Site Plan Key Parcel outline: Building Area: 3,650 sf Ingress/Egress: PARKING Snelling Ave 40,000 DAILY FLAG POLE MONUMENT SIGN County B Rd W 7,800 DAILY 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
tenants Mattress Firm (NASDAQ: MFRM) currently operates over 3,546 locations across 48 states nationwide, making it the largest bedding retailer in the country, with estimated fiscal 2016 sales of approximately $4 billion. 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 (bed frames, mattress pads, pillows). The stores carry a broad assortment of national mattress brands and exclusive brands. In 2011, Mattress Firm Holding Corp went public and has shown very strong sales and profit growth since. CenturyLink is an American worldwide communications company headquartered in Monroe, Louisiana. It provides communications and data services to residential, business, governmental and wholesale customers in 36 states. A member of the S&P 500 index, the company operates as a local exchange carrier and Internet service provider in U.S. markets and is the third-largest telecommunications company in the United States in terms of lines served, behind AT&T and Verizon. The company also provides long distance service. [ REPRESENTATIVE PHOTO ] [ actual store ] mattress firm 8
surrounding retail the subject property is directly across from the first target ever opened. mattress firm 9
demographics & regional map Population 1-Mile 3-Mile 5-Mile 2010 8,294 82,593 326,296 2015 8,351 84,101 336,086 2020 8,592 87,327 351,183 40,000 DAILY 7,800 DAILY 2015 Household incomes 1-Mile 3-Mile 5-Mile Average $74,309 $72,150 $64,554 Median $56,799 $54,571 $45,966 Top Employers in St. Paul, mn Employer # of Employees* HealthPartners/Regions Hospital 4,700 Travelers 2,500 Securian Financial Group 2,450 U.S. Bancorp Information Services 2,112 Ecolab 1,300 Allina Health/United Hospital 1,200 *Approximate numbers from StarTrubune 7 miles 11 min minneapolis roseville mattress firm 10
location [ saint paul, mn ] About roseville, mn Roseville is a suburban community located in the northern Minneapolis / St. Paul metropolitan area. Located on 2 major highways (I-35W & State Highway 36), it borders both Minneapolis and St. Paul, and is a short commute to either downtown area. Roseville is considered the retail and commercial hub of the northeast suburban area. About saint paul, mn St. Paul is the capital and second most populous city in Minnesota, with nearly 300,000 residents. Known as the Twin Cities, St. Paul and Minnesota together form the 16th largest metropolitan area in the United States, with about 3.5 million residents. roseville is 10 miles From saint paul, The capital and second most populous city in MN The unemployment rate for the Twin Cities was just 3.9% in January 2016 (reported by the Bureau of Labor Statistics), the 8th lowest of all large metropolitan areas in the country. This is due in part to their thriving start-up community that s building ventures on top of namebrand social platforms such as Twitter and Facebook. Another source is the ripple effect of the Bakken shale oil fields in the neighboring state of North Dakota. Though Minneapolis is better-known nationally, Saint Paul contains the state government and other important institutions. Regionally, the city is known for the Xcel Energy Center, home of the Minnesota Wild and for the Science Museum of Minnesota. As a business hub of the Upper Midwest, it is the headquarters of several companies, including Ecolab, a chemical cleaning product company, Securian Financial Group, Inc. and Gander Mountain, a retailer of sporting goods. mattress firm 11
A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ www.capitalpacific.com ] [ representative photo ] Chris Kostanecki ck@capitalpacific.com (415) 274-2701 CA BRE# 01002010 zeb ripple zripple@capitalpacific.com (415) 274-2702 CA BRE# 01242540 chris peters cpeters@capitalpacific.com (415) 274-2703 CA BRE# 01339983 jack navarra jnavarra@capitalpacific.com (415) 274-2705 CA BRE# 1909630 Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. rick sanner bob sanner dave lucas zandy smith john andreini joe caccamo gregg steele karla zens [ Copyright 2016 Capital Pacific ]