OFFERING MEMORANDUM Mattress Firm 3708 N US Highway 1, Cocoa, FL 32926
Exclusively Listed By Clay Smith Associate Clay.Smith@matthews.com DIR (214) 692-2216 MOB (404) 316-3197 LIC # 693140 (TX) chad kurz SVP & National Director Chad.Kurz@matthews.com DIR (214) 692-2927 MOB (562) 480-2937 LIC # 01911198 (CA) Kyle Matthews Broker of Record Lic # CQ1052263
Investment Highlights Paying well below market rent at $6.43 SF Zero options remaining, giving the landlord the ability to renegotiate a long-term lease Income tax-free state Strong 9.00% Cap Rate Location Highlights Attractive traffic volume of 34,000 vechicals per day Strong population infill of 73,000 in a 5-mile radius High Visibility in a Great Location, near intersection of Highway 1 and bridge to Cocoa Beach with a combined traffic count of 86,162 vehicles per day Tenant Highlights Mattress Firm is the largest and most successful bedding company in the United States, with over 3,600 locations in 49 states In 2015 Mattress Firm had over $3.5 billion in pro forma revenue which represented over 25% of the market share 03
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Mattress Firm 3708 N US Highway 1 Cocoa, FL 32926 List Price... $750,000 CAP Rate - Current... 9.00% Gross Leasable Area...± 10,500 SF Lot Size...± 0.60 Acres Year Built...1984 Annualized Operating Data Monthly Rent Annual Rent Cap Rate 7/15/13-7/14/18 $5,629.00 $67,548 9.00% Tenant Summary Tenant Trade Name Mattress Firm Type of Ownership Fee Simple Lease Guarantor Mattress Firm Lease Type NN+ Roof and Structure Landlord Responsible Original Lease Term 10 Years Rent Commencement Date 7/16/2008 Lease Expiration Date 10/14/2018 Term Remaining on Lease ± 1 Year 07 05
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TENANT OVERVIEW The company set out to be a different kind of mattress retailer; focused on creating a unique shopping experience for the customer with a large selection of quality, brand name bedding products, competitive pricing and knowledgeable, well-trained associates. The bedding retailer operates or franchises more than 3,600 stores, primarily under the Mattress Firm name, in some 49 states. It sells conventional (Simmons) and specialty (Tempur Sealy) mattresses, which together account for most of its sales, in addition to other brands. The company also sells bed frames and bedding accessories. Since its founding in 1986, the chain has grown into the top U.S. bedding retailer. STRATEGY Since its 2011 IPO, Mattress Firm has made multiple acquisitions to solidify its position as the nation s top mattress seller. Fast-growing Mattress Firm is doing its bit to further the consolidation of the mattress business through an active acquisition schedule, both of independent chains and its own franchisees. The retailer has extended its reach into new markets, including Hawaii, and consolidated its hold on existing ones, by snapping up other bedding companies. Indeed, in fiscal 2015 (ends January) alone, the company added about 800 locations. Property Name Mattress Firm Company Trade Name Mattress Firm Holding Corp. (NASDAQ: MFRM) Ownership Public Credit Rating (S&P) B+ No. of Locations ± 3,600 No. of Employees ± 10,552 Headquartered Houston, Texas Website www.mattressfirm.com Year Founded 1986 GEOGRAPHIC REACH Houston-based Mattress Firm boasts more than 3,600 stores in 49 states. Its largest markets include Florida, home to about 280 stores, Illinois and North Carolina, both with more than 100 locations. The company operates 70 distribution centers, the largest of which are in Texas, Florida, and Georgia. 07
T h e O f f e r i n g Assessor s Parcel Number 24 3608-00-273 GLA ± 10,500 SF Lot Size ± 0.60 Acres (26,136 SF) Oceanside Blvd ± 31,792 College Blvd ± 40,116 N Cocoa Blvd ± 33,000 ADT 08
bird s eye aerial R e g i o n a l M a p
COCOA, FLORIDA Serving as the gateway to Brevard s beautiful beaches, Cocoa is an independent city in Brevard County, Florida located along the Indian River banks. It is part of the Palm Bay-Melbourne-Titusville Metro Area in the eastern part of the state, a region that is known as the Space Coast. Just a short drive to Orlando International Airport and area attractions, the city is ideally located in central Brevard County and is accessible by Interstate 95 and State Roads 528, 520 and 524. Port Canaveral, Kennedy Space Center, and beautiful beaches are within minutes of Cocoa. 10 A r e a O v e r v i e w 10 Matthews Real Estate Investment Services
Buisness Developments One of the most livable cities in the state, Cocoa is a city of community, culture, and commerce : The focus of culture, commerce and tourist activity in East Central Florida. Cocoa s central location within the state makes it the connection point to some of Florida s major metropolitan markets such as Orlando, Jacksonville, Tampa, and Miami. Committed to creating a climate to facilitate the growth and prosperity of local businesses, Cocoa is taking a progressive economic position in Brevard County, welcoming new business and industry into the community. Through lower development fees and an open for business attitude, the city is fostering an entrepreneurial environment to help grow and diversify the local economy. offers a wide variety of job opportunities, great benefits and opportunities for advancement fosters a favorable environment for development thanks to its streamlined and competitive building and site permitting process and innovative economic development programs abundance of land available for development along the State Road 524 commercial corridor, Cocoa s large industrial area north of State Road 528 Demographics POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 1,220 22,187 77,186 2017 Estimate 1,205 21,577 74,669 2010 Census 1,205 21,262 72,584 2000 Census 1,167 21,145 70,109 Growth 2017-2022 1.25% 2.83% 3.37% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 528 9,053 30,942 2017 Estimate 520 8,692 29,680 2010 Census 515 8,310 28,281 2000 Census 516 8,403 27,149 Growth 2017-2022 1.54% 4.15% 4.25% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $70,425 $61,145 $60,856
HISTORIC COCOA VILLAGE Historic Cocoa Village, the thriving downtown core of the City of Cocoa, is one of Brevard County s premier shopping and entertainment districts and one of the Space Coast s most popular attractions. Visitors can walk along treelined streets shop and enjoy the relaxing atmosphere of a nostalgic riverside community. Nearly every weekend, this downtown area hosts special events, including family friendly events such as July 4th, BBQ & Blues, Halloween in the Village, Craft Fairs and more. A REGIONAL WATER SUPPLIER Cocoa is a regional water supplier and operates a water utility system that covers the entire central part of Brevard County with approximately 80,000 connections, including households.
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Mattress Firm located at 3708 N US Highway 1, Cocoa, FL 32926 ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
Mattress Firm 3708 N US Highway 1, Cocoa, FL 32926 Exclusively Listed By Clay Smith Associate clay.smith@matthews.com DIR (214) 692-2216 MOB (404) 316-3197 LIC # 693140 (TX) chad kurz SVP & National Director Chad.Kurz@matthews.com DIR (214) 692-2927 MOB (562) 480-2937 LIC # 01911198 (CA) Kyle Matthews Broker of Record Lic # CQ1052263