ASHEVILLE, NORTH CAROLINA Mattress Firm Asking Price: MICHAEL ZIMMERMAN + 919.391.9901 CapAsking Rate: Price: $2,449,333 [email protected] Cap Rate: 7.50% Investment Highlights Attractive Investment + 10% Rental Increases With Multiple Options to Renew + Leading Mattress Retailer With Expanding Footprint + Retail Site Directly Off I-240 (78K+ ADT) + Company Sales of $3.6B+ in 2016 Alone Prominent Retail Location + Fast-Growing Urban Center With 450K+ Residents + Adjacent to Asheville Mall Along Tunnel Road + Central Location Along Major Retail Corridor + 10M+ Visitors & $2.9B+ Retail Sales Annually Ease of Accessibility + Central MSA Location Between Washington, D.C. & Miami + Within 700 Mi. of 170M+ U.S. & Canadian Customers + 17K+ Daily Traffic Counts Along Tunnel Road + Access to I-40 and I-26 & Direct Flights MattressTEXAS ROADHOUSE Firm + Investment | INVESTMENTAERIALRIVERVIEWHILLSBOROUGH Highlights OVERVIEW HIGHLIGHTS COUNTY DEVELOPMENT groundandspacepartners.com + 1 REPRESENTATIVE PHOTO Lease Summary Tenant Mattress Firm Guarantor Corporate Address 209 Tunnel Road Asheville, NC 28805 Asking Price $2,449,333 Cap Rate 7.50% Annual Rent $183,700 ($41.75/SF)* Year Built 2013 Building Size ± 4,400 SF Mattress Firm Rent Schedule Lot Size ± 0.45 Acres Mattress Firm offers a broad selection of traditional mattresses Years Annual Rent Increase Lease Term 11 Years and bedding accessories through over 3,500 company- operated and franchise-owned stores in 49 states. In February 1–5 (Base Term) $167,000 ($37.95/SF) None Lease Type NN 2016, Mattress Firm completed the purchase of all the 6–10 (Base Term) $183,700 ($41.75/SF) 10.0% outstanding equity interests in the holding company of Commenced October 1, 2013 Sleepy’s, which totaled approximately $795.5 million. In August 11 (Base Term) $202,070 ($45.93/SF) 10.0% 2016, the company was purchased by Steinhoff International Expiration September 30, 2024 and now operates as a subsidiary of Steinhoff. With the 12–16 (Option 1) $202,070 ($45.93/SF) None largest geographic footprint in the country among multi-brand 17–21 (Option 2) $222,277 ($50.52/SF) 10.0% Options 3 x 5-Year Options specialty mattress retailers, Mattress Firm not only provides superior sleep solutions, but opportunities in hundreds of 21–26 (Option 3) $244,505 ($55.57/SF) 10.0% Increases 10% in Years 6, 11 and communities nationwide. The company’s success and proven Within Options 2 & 3 track record allows them to offer solid guarantees to further ensure customer satisfaction. Today, Mattress Firm has become Roof, Structure the top specialty mattress retailer in the country, with fiscal Landlord 2016 sales of more than $3.8 billion. Thanks to the company’s & Parking Lot extensive distribution network, Mattress Firm offers a distinct *Rent is scheduled to increase in October 2018. The seller will competitive advantage in an evolving omni-channel world. credit any difference at the time of closing. MattressTEXAS ROADHOUSE Firm + Lease | SummaryINVESTMENTAERIALRIVERVIEWHILLSBOROUGH OVERVIEW HIGHLIGHTS COUNTY DEVELOPMENT groundandspacepartners.com + 2 Mattress Firm Retail Market Overview Asheville, North Carolina T E X A S R O D H U | I N V M G L W B C Y P gr oundandspac epar tners.c om + 3 Ma t tr es s F irm Mar k et Over view 78,000 ADT Tunnel Road: 17,000 ADT 73,000 ADT MattressTEXAS ROADHOUSE Firm + Aerial | INVESTMENTAERIALRIVERVIEWHILLSBOROUGH OVERVIEW HIGHLIGHTS COUNTY DEVELOPMENT groundandspacepartners.com + 4 Tunnel Road 26,000 ADT The Peaks 73,000 ADT Opening June 2018 17,000 ADT Asheville Mall 21,000 ADT 12,000 ADT MattressTEXAS ROADHOUSE Firm + Aerial | INVESTMENTAERIALRIVERVIEWHILLSBOROUGH OVERVIEW HIGHLIGHTS COUNTY DEVELOPMENT groundandspacepartners.com + 5 Asheville Mall Located within walking distance of this Mattress Firm Development Plans site, the Asheville Mall is the largest mall in Western North Carolina with over 130 retailers, 15 eateries and 974,465 square feet of retail space. The shopping center features many specialty retailers and is anchored by Belk, Dillard’s and JCPenney. The mall includes a two-story Barnes & Noble along with other popular national brand stores like Ulta Beauty, Banana Republic, Build-A-Bear Workshop, H&M, Earthbound Trading Company, Eddie Bauer and Victoria’s Secret. The Asheville Mall is conveniently located along Tunnel Road just off Exit 7 on Highway 240 in East Asheville, and serves as the primary Retail Market Overview regional mall for residents living in Western North Carolina. A proposed $45 million redevelopment project Open-air markets and independent boutiques with favorite national brands in and near the mall’s former Sears store shows the to provide a unique character for Asheville’s diverse retail scene. Visitors and addition of restaurants, retail stores, a 10-screen residents can stroll through the city’s many tree-lined shopping districts to multiplex movie theatres and a six-story structure discover independent bookstores, vintage apparel, craft galleries and a mix of with 204 multi-family housing units—all in the hopes of turning the Asheville Mall into a unique mixed-use specialty shops and big-box stores. Grove Arcade shopping destination. Asheville Outlets Hilton Asheville are just a few of the other Located just five minutes from downtown, amenities this development offers. Asheville Outlets is a premier shopping destination for shoppers looking for national Grove Arcade brands at lower prices. Visitors can choose The Grove Arcade was the grand dream of from more than 70 name-brand retailers E.W. Grove, a self-made millionaire who first including: Coach, J. Crew Factory, Nike moved to Asheville in 1910. The building first Factory Store, Skechers, Brooks Brothers opened in 1929, and—after being closed Factory Store, Vera Bradley, Cole Haan, RH during World War II—was eventually fully Outlet, Dillard’s Clearance Center, Field & resorted between 1999 and 2002 at a cost Stream and more. Stores offer everything of around $20 million. The first floor of this from jewelry, home furnishings and outdoor historic structure features a public market gear to menswear, ladie’s apparel and with space for approximately 52 shops and sportswear. As shoppers walk from store to restaurants. The second floor has 22,000 store under the covered breezeways, music square feet of office space, and the top three fills the air. Wide pathways allow easy access, floors hold 42 luxury apartments. The Grove an ample seating offers the opportunity to Arcade on Battery Hill remains Western take relaxing breaks in-between shopping North Carolina’s largest commercial building adventures. The mall’s focal point is a and has become Asheville’s new Public beautiful fire and water fountain that serves Market, restored to its previous grandeur. as a central gathering place. The Peaks Biltmore Park Town Square A whole host of restaurants and retailers are Humming with life, this vibrant town center in on their way to Asheville at a new retail center Asheville is a fresh re-imagining of the Main opening in June 2018 called The Peaks. The Streets of the past, made to meet today’s project is situated on the site of a former UA standards of smart growth, green living and theatre on a two-acre corner in Asheville’s reduced driving. This planned community busy retail area along Tunnel Road (Highway features new condos, town homes and 70). This site is across from the Asheville mall apartments, and is connected to exciting and will offer 12 restaurant and retail spaces shops, lively restaurants, unique cafés, totaling 33,517 square feet (retailers include The Peaks (Opened June 2018) Biltmore Park Town Square spas and healthclubs, a range of dynamic Chipotle and Sleep Number). The Peaks is business and many more recreational a lifestyle-driven center that will sport a activities. Visitors can discover retailers like unique look and feel with its contemporary LOFT, REI and Barnes & Noble sitting side by mountain style with natural finishes. There will side with one-of-a-kind stores and a wide be storefronts on both sides of the center to selection of Class A office space. A state-of- activate the street with a pedestrian-oriented the-art YMCA, the Regal Biltmore Grand design, and a plaza space will be provided for Stadium movie theatre and the luxurious outdoor dining with stunning mountain views. MattressTEXAS ROADHOUSE Firm + Retail | MarketINVESTMENTAERIALRIVERVIEWHILLSBOROUGH Overview OVERVIEW HIGHLIGHTS COUNTY DEVELOPMENT groundandspacepartners.com + 6 Mattress Firm Asheville Overview Asheville, North Carolina MattressTEXAS ROADHOUSE Firm + Asheville | INVESTMENTAERIALRIVERVIEWHILLSBOROUGH Overview OVERVIEW HIGHLIGHTS COUNTY DEVELOPMENT groundandspacepartners.com + 7 Asheville Overview Asheville’s rich architectural legacy with its mix of Art Deco, Beaux Arts and Neoclassical styles is the perfect retro-urban backdrop to the edgy energy that emanates from this thriving mountain city. Asheville features aneclectic downtown, a burgeoning culinary and live music scene, a wide variety of outdoor activities—all against the backdrop of the Appalachian Mountains. Vibrant Music Scene overnight guest at the four-star, four- Downtown Asheville fills frequently with diamond Inn on Biltmore estate. costumed actors, artists, musicians and avant-garde performers that take part in Food Lovers’ Paradise street festivals and impromptu celebrations. Asheville chefs look to the mountains—and The city plays host to annual events such dig into the region’s deep roots—for food as Shindig on the Green, an outdoor that is as delicious as it is authentic and true bluegrass festival. During the summer months, to this place. Greens, beans and corn bread Downtown After Five draws both local and have never tasted so good. Neither have national musical talent to free street parties Spanish tapas or Indian street food—just two every third Friday afternoon, and, in August, of the cuisines that have earned local chefs LEAF Downtown hosts two days of music and nominations for James Beard Awards. Foodies performing arts in Pack Square Park.