Mattress Firm
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PITTSBURGH, PENNSYLVANIA Mattress Firm Asking Price: $2,225,227 Michael Zimmerman 919.391.9901 Cap Rate: 7.50% [email protected] BOSTON, MA | CHAPEL HILL, NC | CHARLOTTE, NC | JUPITER, FL | LOS ANGELES, CA | PITTSBURGH, PA | ATLANTICRETAIL.COM 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. 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 McKNIGHT ROAD Minimal Landlord Responsibilities on NN Lease Synergies With Area Home Furnishing Stores The Block Norway PROMINENT RETAIL 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 MATTRESS FIRM | INVESTMENT HIGHLIGHTS ATLANTICRETAIL.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 COMMENCED June 1, 2013 YEARS ANNUAL RENT INCREASE EXPIRATION May 31, 2024 1–5 (Base Term) $151,719 ($37.93/SF) None 6–10 (Base Term) $166,892 ($41.72/SF) 10.0% OPTIONS 3 x 5-Year Options 11 (Base Term) $183,581 ($45.89/SF) 10.0% INCREASES 10% in Years 6, 11 12–16 (Option 1) $183,581 ($45.89/SF) None Within Options 2 & 3 17–21 (Option 2) $201,939 ($50.48/SF) 10.0% LANDLORD Roof, Structure 21–26 (Option 3) $222,133 ($55.53/SF) 10.0% & Parking Lot MATTRESS FIRM | LEASE SUMMARY ATLANTICRETAIL.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. MATTRESS FIRM | TENANT PROFILE ATLANTICRETAIL.COM | 3 Mattress Firm Retail Market Overview Pittsburgh, Pennsylvania MATTRESS FIRM | MARKET OVERVIEW ATLANTICRETAIL.COM | 4 McIntyre Square The Block Norway Kane Regional Nursing Center McKNIGHT ROAD 27,000 ADT MATTRESS FIRM | MARKET AERIAL ATLANTICRETAIL.COM | 5 27,000 ADT Ross Park Mall McKNIGHT ROAD McIntyre Square 27,000 ADT 27,000 The Block Norway McKNIGHT ROAD MATTRESS FIRM | MARKET AERIAL ATLANTICRETAIL.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 and foreign chocolates. Purchases of jewelry DISCOVER DOWNTOWN JCPenney. The shopping center includes more than 1.2 million square feet of retail space and houses more and artwork from The Store at Contemporary The changing streetscape of downtown than 170 retailers on multiple levels. Specialty shops include Tiffany & Co., Apple, Louis Vuitton, Burberry, Craft support working artists and community offers a mix of retailers, including Larrimor’s, Crate & Barrel and Michael Kors. Delicious dining options include The Cheesecake Factory and western programs. The city has a collection of stores Brooks Brothers, Jos. A. Bank, Boutique La Pennsylvania’s first California Pizza Kitchen can be found in the mall’s outdoor lifestyle component. Ross Park for literature and music lovers, including Passerelle, Avenue and Burlington Stores. Mall serves the communities of Ross Township, McCandless and Cranberry Township, and is considered to be the Penguin Bookshop and Dave’s Music Mine. Check out the diamond dealers in the No. 1 mall in western Pennsylvania. Simon Property Group recently announced plans to develop the former Sears Clark Building on Liberty Avenue, or visit two-story space into a new, three-story space complete with a dining hall, entertainment venues, restaurants and the European-style arcade in Fifth Avenue MALLS & OUTLETS new retailers. Construction will begin in January 2019, and the new addition will open in Summer 2020. place for specialty shops including Crystal Anchored by Nordstrom, Macy’s and River Gems and DiCello’s Gallery. At Market JCPenney, Ross Park Mall has nearly Street Grocery, passersby can grab some 170 retailers that make shopping fun, goodies to eat on the spot. Nearby Market fulfilling and full of surprises. The Waterfront, Square is home to Pittsburgh originals like built on land once occupied by U.S. Steel’s Nicholas Coffee Company, Sinful Sweets Homestead Works, has more than 50 and Pittsburgh Popcorn Company. During national and regional retailers. The Galleria of the holiday season, browse the Peoples Gas Mt. Lebanon provides an unforgettable day Holiday Market to find unique, artisanal gifts. of shopping with upscale shops and both Inspired by the German Christkindlemarkts, fine-dining and casual restaurants. Visitors a corner of downtown is transformed each can wander the more than 40 stores found in year into a European shopping village with the Pittsburgh International Airport Airmall Alpine-style wooden chalets containing glass to find interesting luxury brands like Hugo ornaments, nesting dolls and nutcrackers, Boss, Armani Jeans, Nine West, Sportzburgh baskets, walking sticks, international toys and and Three Rivers Harley-Davidson. Go much more. bargain-hunting at Grove City Premium outlets, which features more than 130 EXPLORE THE NEIGHBORHOODS shops and is located 50 minutes north Each of Pittsburgh’s neighborhoods is of Pittsburgh. Shoppers have access to filled with a whole host of local shops and retailers like Coach, J.Crew, The North Face, boutiques offering one-of-a-kind gifts and Under Armour, Vera Bradley and White products. Artifacts in the West End is a House Black Market. About 30 minutes treasure hunter’s delight, and Mon Aimee south of Pittsburgh—just off Interstate 79 in Chocolat displays a feast of both domestic Washington—is the open-air Tanger Outlets. MATTRESS FIRM | RETAIL MARKET OVERVIEW ATLANTICRETAIL.COM | 7 Mattress Firm Pittsburgh City Overview Pittsburgh, Pennsylvania MATTRESS FIRM | PITTSBURGH CITY OVERVIEW ATLANTICRETAIL.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 cities in the country. THE CITY OF BRIDGES CITY WITH AN ENTRANCE Pittsburgh—also known as the “City of Architects of yesterday designed must- Bridges”—has 466 spans, more than any see churches, mansions, skyscrapers and other city in the world (including Venice, other historic structures in the city that Italy). Stone piers from early bridges stand as meld with the ultra-modern construction reminders of the city’s resilient spirit. Several of today. Entering the city via the Parkway artistic bridges adorn three major rivers. The (I-376 West) allows visitors to experience Monongahela River’s iconic Smithfield Street firsthand Pittsburgh’s spectacular skyline Bridge—the oldest steel span in the country— as it bursts forth upon emerging from the speaks to growth of a center for industry Fort Pitt Tunnel. This view inspired one New and innovation. A trio of identical “Sister York Times writer to call Pittsburgh “the Bridges,” suspended across the Allegheny only city with an entrance.” Equally fun is River, links the downtown area and the David getting around the Golden Triangle’s quirky L. Lawrence Convention Center with North street grid and Pittsburgh’s many hills. Bond Shore’s PNC Park and Heinz Field. with history and the cityscape aboard the Monongahela Incline—the nation’s oldest DYNAMIC HUB OF OPPORTUNITY cable car—or the neighboring Duquesne Today, Pittsburgh has reinvented public Incline. Visitors can also eat in one of the spaces to bridge its rugged past with many fine dining establishments along expectation for a sustainable future. “Restaurant Row,” which all provide stunning Smart streets, attractive riverfronts, green views of the city. skyscrapers, re-imagined housing, a thriving downtown and investment