Mattress firm freestanding mattress firm 3257 W Jacobs Drive, Bloomington, IN 47404 John Andreini jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 Bob Sanner bsanner@capitalpacific.com (415) 274-2717 CA BRE# 00869657 Rick Sanner rsanner@capitalpacific.com (415) 274-2709 CA BRE# 01792433 Chris Kostanecki ck@capitalpacific.com (415) 274-2701 CA BRE# 01002010 In conjunction with IN Licensed Broker: Joe Cirillo, Priority One Realty josephwcirillo@aol.com 317-724-5518
PROperty Summary PRICE: $2,203,704 CAP: 6.75% Rentable SF... 4,156SF Price per SF... $530.25 land area...0.50 Acres YEAR BUILT...2015 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 Highlights Mattress 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 highlights Brand 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 Highland Park Elementary 48 45 W 3rd Street WHITEHALL CROSSING WHITEHALL PLAZA 37 45 37,250 DAILY 33,330 DAILY 45 BLOOMINGTON CITY CENTER W Bloomfield Road W 3rd Street 45 mattress firm 3
income & expense 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 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 4
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 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 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
Site PLan 13,135 DAILY N Jacob Drive N Gates Drive NOT A PART NOT A PART Off Ramp 45 33,330 DAILY 48 W 3rd Street mattress firm 6
photos Area retailers inlcude Lowe s, Kohl s, Bed Bath & Beyond, T.J. Maxx, Petsmart, & Michael s mattress firm 7
tenant overview About Mattress firm Mattress 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 3,861 2014 REVENUE 1.2 Million+ NUMBER OF LOCATIONS 2,000+ mattress firm 8
In The News Mattress firm acquires sleep train 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. 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 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. Key P0ints 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 Fortifies Mattress Firm as the leading mattress specialty retailer in the United States mattress firm 9
Regional Map Bloomington IN Location Indianapolis 1 HR 8 Min 51 Miles 33,300 DAILY 37,250 DAILY Bloomington cincinnati mattress firm 10
location & demographics 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. Population 1-Mile 3-Mile 5-Mile 2010 5,741 46,906 104,658 2015 5,724 47,748 106,599 2020 5,775 49,029 109,368 2013 Household incomes 1-Mile 3-Mile 5-Mile Average $36,845 $37,086 $49,148 Top Employers in Employer # of Employees* Indiana University 7,000 Cook Group, Inc. 3,330 Indiana University Health 2,246 Monroe County Comuinty Schools 1,882 *Approximate mattress firm 11
A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ www.capitalpacific.com ] John Andreini jandreini@capitalpacific.com (415) 274-2715 CA BRE# 01440360 Bob Sanner bsanner@capitalpacific.com (415) 274-2717 CA BRE# 00869657 Rick Sanner rsanner@capitalpacific.com (415) 274-2709 CA BRE# 01792433 Chris kostanecki ck@capitalpacific.com (415) 274-2701 CA BRE# 01002010 In conjunction with IN Licensed Broker: Joe Cirillo, Priority One Realty josephwcirillo@aol.com 317-724-5518 Copyright 2015 [Capital Pacific Real Estate Brokerage Company]