Mattress Firm
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PITTSBURGH, PENNSYLVANIA Mattress Firm Asking Price: $2,225,227 MICHAEL ZIMMERMAN + 919.391.9901 + [email protected] CapAsking Rate: Price: Property listed in conjunction with Pennsylvania broker Aaron Savin of Cap Rate: 7.50% ECHO Real Estate Services Company (PA RE license RM419391). Prime Site on McKnight Road This area of McKnight Road features several high-end home furnishing retailers, including The Container Store, At Home, CORT Furniture, Kirkland’s and many more. McKnight Road The Block Norway Investment Highlights Attractive Investment + Visible Corner Location Adjacent to The Block Norway + 10% Rental Increases With Multiple Options to Renew + Leading Mattress Retailer With Expanding Footprint + Minimal Landlord Responsibilities on NN Lease + Synergies With Area Home Furnishing Stores ProminentRetail Location + Along Major Retail Corridor Along McKnight Road + 1.5 Miles From Ross Park Mall & Luxury Retailers + Pittsburgh Metro Home to 2.3M+ Residents + City is 6th Best Area in U.S. for Job Growth Ease of Accessibility + City is Vital Link Between Midwest & East Coast + Within 500 Miles of 50% of the U.S. Population + Site Has Easy Access to Downtown Pittsburgh + Access to 72 Non-Stop Flights on 17 Airlines MattressSHOPSCELEBRATIONTEXAS ROADHOUSEAT Firm SEBRING +TRIANGLE Investment || INVESTMENTJERSEYINVESTMENTAERIALRIVERVIEWHILLSBOROUGH RETAIL Highlights MIKE’S |OVERVIEW DEMOGRAPHICSHIGHLIGHTSHIGHLIGHTS SUBS COUNTY TENANT DEVELOPMENT PROFILE groundandspacepartners.com + 1 Lease Summary Tenant Mattress Firm Guarantor Corporate Address 7975 McKnight Road Pittsburgh, PA 15327 Asking Price $2,225,227 Cap Rate 7.50% Annual Rent $166,892 ($41.72/SF) Year Built 2013 Building Size ± 4,000 SF Lot Size ± 0.52 Acres Lease Term 11 Years Rent Schedule Lease Type NN Years Annual Rent Increase Commenced June 1, 2013 1–5 (Base Term) $151,719 ($37.93/SF) None Expiration May 31, 2024 6–10 (Base Term) $166,892 ($41.72/SF) 10.0% 11 (Base Term) $183,581 ($45.89/SF) 10.0% Options 3 x 5-Year Options 12–16 (Option 1) $183,581 ($45.89/SF) None Increases 10% in Years 6, 11 17–21 (Option 2) $201,939 ($50.48/SF) 10.0% Within Options 2 & 3 21–26 (Option 3) $222,133 ($55.53/SF) 10.0% Landlord Roof, Structure & Parking Lot MattressSHOPSCELEBRATIONTEXAS ROADHOUSEAT Firm SEBRING +TRIANGLE Lease || INVESTMENTJERSEYSummaryINVESTMENTAERIALRIVERVIEWHILLSBOROUGH RETAIL MIKE’S |OVERVIEW DEMOGRAPHICSHIGHLIGHTSHIGHLIGHTS SUBS COUNTY TENANT DEVELOPMENT PROFILE groundandspacepartners.com + 2 Mattress Firm Mattress Firm—through its brands including Mattress Firm, Sleepy’s and Sleep Train—offers a broad selection of traditional mattresses and bedding accessories through over 3,500 company-operated and franchise-owned stores in 49 states. In February 2016, Mattress Firm completed the purchase of all the outstanding equity interests in the holding company of Sleepy’s, which totaled approximately $795.5 million. In August 2016, the company was purchased by Steinhoff International and now operates as a subsidiary of Steinhoff. With the largest geographic footprint in the country among multi-brand specialty mattress retailers, Mattress Firm not only provides superior sleep solutions, but opportunities in hundreds of communities nationwide. The company’s success and proven track record allows them to offer solid guarantees to further ensure customer satisfaction. Today, Mattress Firm has become the top specialty mattress retailer in the country, with fiscal 2016 sales of more than $3.8 billion. Thanks to the company’s extensive distribution network, Mattress Firm offers a distinct competitive advantage in an evolving omni-channel world. MattressSHOPSCELEBRATIONTEXAS ROADHOUSEAT Firm SEBRING +TRIANGLE Tenant || INVESTMENTJERSEYINVESTMENTAERIALRIVERVIEWHILLSBOROUGH Profile RETAIL MIKE’S |OVERVIEW DEMOGRAPHICSHIGHLIGHTSHIGHLIGHTS SUBS COUNTY TENANT DEVELOPMENT PROFILE groundandspacepartners.com + 3 Mattress Firm Retail Market Overview Pittsburgh, Pennsylvania MattressSHOPSCELEBRATIONTEXAS ROADHOUSEAT Firm SEBRING +TRIANGLE Retail || INVESTMENTJERSEYMarketINVESTMENTAERIALRIVERVIEWHILLSBOROUGH RETAIL OverviewMIKE’S |OVERVIEW DEMOGRAPHICSHIGHLIGHTSHIGHLIGHTS SUBS COUNTY TENANT DEVELOPMENT PROFILE groundandspacepartners.com + 4 McIntyre Square The Block Norway Kane Regional Nursing Center McKnight Road 27,000 ADT MattressSHOPSCELEBRATIONTEXAS ROADHOUSEAT Firm SEBRING +TRIANGLE Aerial || INVESTMENTJERSEYINVESTMENTAERIALRIVERVIEWHILLSBOROUGH RETAIL MIKE’S |OVERVIEW DEMOGRAPHICSHIGHLIGHTSHIGHLIGHTS SUBS COUNTY TENANT DEVELOPMENT PROFILE groundandspacepartners.com + 5 27,000 ADT Ross Park Mall McKnight Road McIntyre Square 27,000 ADT The Block Norway McKnight Road MattressSHOPSCELEBRATIONTEXAS ROADHOUSEAT Firm SEBRING +TRIANGLE Aerial || INVESTMENTJERSEYINVESTMENTAERIALRIVERVIEWHILLSBOROUGH RETAIL MIKE’S |OVERVIEW DEMOGRAPHICSHIGHLIGHTSHIGHLIGHTS SUBS COUNTY TENANT DEVELOPMENT PROFILE groundandspacepartners.com + 6 Retail Market Overview Visitors to the city will find everything from boutiques and gift shops to malls and outlets in Pittsburgh. Explore the walkable downtown area or the more quirky neighborhood shopping districts while enjoying no sales tax on clothing, shoes and necessities. Conveniently located in the North Hills of Pittsburgh, Ross Park Mall is anchored by Nordstrom, Macy’s and JCPenney. Discover Downtown and foreign chocolates. Purchases of jewelry The shopping center includes more than 1.2 million square feet of retail space and houses more than 170 retailers on The changing streetscape of downtown offers and artwork from The Store at Contemporary multiple levels. Specialty shops include Tiffany & Co., Apple, Louis Vuitton, Burberry, Crate & Barrel and Michael Kors. a mix of retailers, including Larrimor’s, Brooks Craft support working artists and community Delicious dining options include The Cheesecake Factory and western Pennsylvania’s first California Pizza Kitchen Brothers, Jos. A. Bank, Boutique La Passerelle, programs. The city has a collection of stores can be found in the mall’s outdoor lifestyle component. Ross Park Mall serves the communities of Ross Township, Avenue and Burlington Stores. Check out for literature and music lovers, including McCandless and Cranberry Township, and is considered to be the No. 1 mall in western Pennsylvania. Simon Property the diamond dealers in the Clark Building Penguin Bookshop and Dave’s Music Mine. Group recently announced plans to develop the former Sears two-story space into a new, three-story space complete on Liberty Avenue, or visit the European- with a dining hall, entertainment venues, restaurants and new retailers. Construction will begin in January 2019, and style arcade in Fifth Avenue place for specialty Malls and Outlets the new addition will open in Summer 2020. shops including Crystal River Gems and Anchored by Nordstrom, Macy’s and DiCello’s Gallery. At Market Street Grocery, JCPenney, Ross Park Mall has nearly 170 passersby can grab some goodies to eat on retailers that make shopping fun, fulfilling and the spot. Nearby Market Square is home full of surprises. The Waterfront, built on land to Pittsburgh originals like Nicholas Coffee once occupied by U.S. Steel’s Homestead Company, Sinful Sweets and Pittsburgh Works, has more than 50 national and Popcorn Company. During the holiday season, regional retailers. The Galleria of Mt. Lebanon browse the Peoples Gas Holiday Market to provides an unforgettable day of shopping find unique, artisanal gifts. Inspired by the with upscale shops and both fine-dining and German Christkindlemarkts, a corner of casual restaurants. Visitors can wander the downtown is transformed each year into a more than 40 stores found in the Pittsburgh European shopping village with Alpine-style International Airport Airmall to find interesting wooden chalets containing glass ornaments, luxury brands like Hugo Boss, Armani Jeans, nesting dolls and nutcrackers, baskets, walking Nine West, Sportzburgh and Three Rivers sticks, international toys and much more. Harley-Davidson. Go bargain-hunting at Grove City Premium outlets, which features Explore the Neighborhoods more than 130 shops and is located 50 Each of Pittsburgh’s neighborhoods is filled minutes north of Pittsburgh. Shoppers have with a whole host of local shops and access to retailers like Coach, J.Crew, The boutiques offering one-of-a-kind gifts and North Face, Under Armour, Vera Bradley and products. Artifacts in the West End is a White House Black Market. About 30 minutes treasure hunter’s delight, and Mon Aimee south of Pittsburgh—just off Interstate 79 in Chocolate displays a feast of both domestic Washington—is the open-air Tanger Outlets. MattressSHOPSCELEBRATIONTEXAS ROADHOUSEAT Firm SEBRING +TRIANGLE Retail || INVESTMENTJERSEYMarketINVESTMENTAERIALRIVERVIEWHILLSBOROUGH RETAIL OverviewMIKE’S |OVERVIEW DEMOGRAPHICSHIGHLIGHTSHIGHLIGHTS SUBS COUNTY TENANT DEVELOPMENT PROFILE groundandspacepartners.com + 7 Mattress Firm Pittsburgh Overview Pittsburgh, Pennsylvania MattressSHOPSCELEBRATIONTEXAS ROADHOUSEAT Firm SEBRING +TRIANGLE Pittsburgh || INVESTMENTJERSEYINVESTMENTAERIALRIVERVIEWHILLSBOROUGH RETAIL Overview MIKE’S |OVERVIEW DEMOGRAPHICSHIGHLIGHTSHIGHLIGHTS SUBS COUNTY TENANT DEVELOPMENT PROFILE groundandspacepartners.com + 8 Pittsburgh Overview Today, Pittsburgh welcomes visitors from around the globe. Its strengths lie in its authenticity as an all-American city, and its genuine, hard-working and welcoming sense of community that has transformed it into one of the most beautiful and progressive