Mattress Firm

Mattress firm

John Andreini Rick Sanner freestanding [email protected] | (415) 274-2715 [email protected] | (415) 274-2709 CA BRE# 01440360 CA BRE# 01792433 mattress firm Bob Sanner Chris Kostanecki [email protected] | (415) 274-2717 [email protected] | (415) 274-2701 3257 W Jacobs Drive, Bloomington, IN 47404 CA BRE# 00869657 CA BRE# 01002010

In conjunction with IN Licensed Broker: Joe Cirillo, Priority One Realty [email protected] | 317-724-5518 PROperty Summary

PRICE: $2,203,704 Rentable SF...... 4,156SF CAP: 6.75% 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

W Bloomfield Road 45

45 BLOOMINGTON W 3rd Street CITY CENTER

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 Current Monthly Yearly Monthly Yearly Sq. Ft. Term Name Rent Rent Rent Rent/FT 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

N Jacob Drive

13,135 DAILY

NOT A PART NOT A PART

N Gates Drive

Off Ramp

48 W 3rd Street 33,330 DAILY

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 NUMBER OF EMPLOYEES nationwide, which makes it the largest US bedding retailer. Mattress 3,861 Firm offers conventional mattresses; specialty mattresses, including 2014 REVENUE viscoleastic foam mattresses and YuMe sleep system, a revolutionary 1.2 Million+ sleep system made of foam produced from coconut oil; and bedding NUMBER OF LOCATIONS related accessories comprising bed frames, mattress pads, and pillows. 2,000+ 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.

mattress firm | 8 In The News

Mattress firm acquires sleep train Key P0ints • Combined Business Operates Over 2,000 Mattress Specialty October 20, 2014 Retail Stores and 70 Distribution Centers Across 40 States HOUSTON--(BUSINESS WIRE)--Mattress Firm Holding Corp. NASDAQ: MFRM), the • Projected revenues for the combined companies expected to leading specialty retailer of mattresses and accessories in the United States, announced be around $2 billion the completion of its acquisition of all of the outstanding equity interests in The Sleep • Expected Mid-Single Digit EPS Percentage Accretion, on GAAP Train, Inc., (“Sleep Train”), the leading West Coast based bedding specialty retailer, for Basis Before One-Time Costs, in Fiscal 2015 an aggregate purchase price of $425 million, subject to working capital and other • Estimated $20 Million in Annual Run Rate Synergies by Fiscal customary adjustments, along with the assumption of certain additional liabilities 2017 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 • Expands footprint into the West Coast, including key strategic markets tax basis goodwill generated from the transaction, subject to the Company’s ability to generate future taxable income. Sleep Train operates approximately 310 specialty • Adds over 310 retail store locations in major markets in mattress retail stores located in California, Oregon, Washington, Idaho, Nevada and California, Washington, Oregon, Nevada, Idaho and Hawaii Hawaii, and reported net sales of approximately $471 million for the 2013 fiscal year. from a leading market share player with limited overlap • Provides customers with great value, convenience and choice • Generates significant synergistic opportunities 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 • Over $20 million of identifiable cost and revenue synergy potential by fiscal year 2017 • Adds high-volume, established locations with a strong and The Company also announced today that it entered into a new senior secured credit experienced leadership team facility with Barclays Bank PLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, • 29 year history of well-positioned, long-term leases in “hard to J.P. Morgan Securities LLC, and UBS Securities LLC, as joint bookrunning managers enter” trade areas and joint lead arrangers. The senior secured credit facility is comprised of (i) an • Immediate scale with a sustained and profitable multi-brand asset based revolver of $125 million that includes a sublimit for letters of credit organization 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 Fortifies Mattress Firm as the mature on the seventh anniversary of the closing. The Company’s existing credit leading mattress specialty facility, including its outstanding term loan borrowing, was terminated upon the retailer in the United States closing of the transaction.

mattress firm | 9

Regional Map

Bloomington IN Location

Indianapolis

1 HR 8 Min 33,300 DAILY 51 Miles

37,250 DAILY 37,250

Bloomington cincinnati

mattress firm | 10 location & demographics

Bloomington, in Overview Population Bloomington is the county seat of Monroe County in the southern region of 1-Mile 3-Mile 5-Mile Indiana. According to the Monroe County History Center, Bloomington is known 2010 5,741 46,906 104,658 as the “Gateway to Scenic Southern Indiana.” 2015 5,724 47,748 106,599 2020 5,775 49,029 109,368 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 2013 Household incomes know each other, but one with a diverse and rich culture due to the international 1-Mile 3-Mile 5-Mile appeal of Indiana University. Bloomington offers urban amenities like a thriving Average $36,845 $37,086 $49,148 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. Top Employers in 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 Employer # of Employees* Indiana University. Indiana University 7,000 Cook Group, Inc. 3,330 Bloomington is the principal city within the Metropolitan area of Indiana, Indiana University Health 2,246 and conveniently located between the state park and capitol. The city has Monroe County Comuinty Schools 1,882 established itself as an important employment hub, hosting a variety of educational facilitates and a solid base of small businesses to provide growth in *Approximate both the employment and economic sector.

mattress firm | 11 A unique HUMAN The capital pacific experience - our daily commitment to our clients RESULTS-DRIVEN client experience [ www .capitalPacific .com ]

John Andreini Rick Sanner [email protected] | (415) 274-2715 [email protected] | (415) 274-2709 CA BRE# 01440360 CA BRE# 01792433

Bob Sanner Chris kOSTANECKI In conjunction with IN Licensed Broker: [email protected] | (415) 274-2717 [email protected] | (415) 274-2701 Joe Cirillo, Priority One Realty CA BRE# 00869657 CA BRE# 01002010 [email protected] | 317-724-5518