mattress firm - 3337 bardstown rd -...

OFFERINGMEMORANDUM

OFFEREDEXCLUSIVELYBY

KENTUCKY- 4205SpringhurstBlvd,Suite202,LouisvilleKY40241|502-454-4933TENNESSEE- 3102WestEndAve,Suite400,Nashville,TN37203|615-881-3122

©Copyright2017TRIOCommercialPropertyGroup

TRIOcpg.comTheinformationcontainedhereinwasobtainedfromsourcesbelievedreliable,howeverTRIOCommercialPropertyGroup,LLCand itsagentsmakenorepresentationastoitsaccuracy.Itisyourresponsibilitytothoroughlyinvestigateandconfirmtheaccuracy ofthisinformation.

INVESTMENTSUMMARY

Address 3337Bardstown Rd.,Louisville,KY40218

Price $2,703,000

CapRate 6.25%

NOI $168,937.50

Term 11years with two (2)5year options

RentCommencement 3/3/2017

LeaseExpiration 3/21/2028

RentalIncreases 10%

YearBuilt 2017

BuildingSF 4,250+/- SF

ParcelSize .4256Acres

LeaseType Netleasewith Landlord responsible for roofandstructure

Ø 11yearleasewith10%rentincreasesafteryear6andevery5yearsthereafter

Ø GuaranteedbyMattressHoldingCorpØ LargestmattressretailerintheUnitedStates,with

morethan3,500locationsnationwide

Long-termLease

Ø ExcellentvisibilityandaccessfromBardstownRoadØ 43,000ADTonBardstownRoadØ 248,250peopleina5mileradiusØ Locatedatsignalizedintersectionsharedwith

Costco,Chick-fil-a,StarbucksandKFC

HighTrafficLocation

Ø LocatedacrossfromLouisville’snewCostcolocationandanewChick-fil-a,VerizonWirelessandStarbucks

Ø TradeareaalsoincludesWalmartSuperCenter,Target,Lowe’s,KrogerandBurlingtonCoatFactory

Ø Only10milesfromdowntownLouisville

TradeAreaInformation

MichaelTaborPartnerTRIOCommercialPropertyGroup502.454.4557mtabor@TRIOcpg.com

ContactInformation

ZOOMEDINAERIAL

TRIOcpg.com

Opened2016

Opened2017

OpenedFall2016

AERIAL

TRIOcpg.com

SITEPLAN

TRIOcpg.com 502.454.4933Theinformationcontainedhereinwasobtainedfromsourcesbelievedreliable,howeverTRIOCommercialPropertyGroup,LLCand itsagentsmakenorepresentationastoitsaccuracy.Itisyourresponsibilitytothoroughlyinvestigateandconfirmtheaccuracy ofthisinformation.

4,250SF

43K- ADT


Tenant Mattress Firm,Inc.

Address 3337Bardstown Rd.,Louisville,KY40218

RentCommencement

3/3/2017

RentExpiration 3/21/2028

RenewalOptions Two (2)five (5)year options

RentalIncreases

RealEstateTaxes Tenant shall be responsible topay applicable taxing authority

InsuranceTenantshallobtainandmaintainall-riskpropertyinsurance,commercialgeneralliabilityinsurancenamingLandlordasanadditionalinsured,andworker’scompensationinsurance.TenantshallpayLandlordforthecostofLandlord’sinsurance.

RepairandMaintenance

Tenant will perform the day today maintenance ofthe maintenance ofthe exteriorparking andlandscaped areas.Tenant shall make andpay for all repairs tothe interiornon-structural portions ofthe premises..

Utilities Tenant shall pay for its consumption ofall utilities atthe premises

MaintenancebyLandlord

Landlord shall maintain andrepair the roofing,exterior painting,conduits andequipmentwhich servethe building but arenot located within the interior thereof,andall structuralportions ofthe building.

YearsBaseRent- Annual

BaseRent-Monthly

PSF Total1 - 6 $39.75 $168,937.50 $14,078.137 - 11 $43.73 $185,852.50 $15,487.71

12– 16 Option1 $48.10 $204,425.00 $17,035.4217– 21 Option2 $52.91 $224,867.50 $18,738.96

LeaseAbstract

Withmorethan3,500company-operatedandfranchisedstoresacross49states,MattressFirmhasthelargestgeographicfootprintintheUnitedStatesamongmulti-brandmattress

retailers.Foundedin1986,Houston-basedMattressFirmisthenation'sleadingspecialtybeddingretailerwithover$3.5billioninproformasalesin2015.InSeptember2016,thecompanywasacquiredby SteinhoffInternational for$3.8billion,andMattressFirmnowoperatesasasubsidiaryofSteinhoff.

Thecompany,throughitsbrandsincludingMattressFirm,Sleepy'sandSleepTrain,offersabroadselectionofbothtraditionalandspecialtymattresses,beddingaccessoriesandotherrelatedproductsfromleadingmanufacturers,includingSerta,SimmonsandHampton&Rhodes

TENANTSUMMARY

StockPhoto


SteinhoffInternational isaGermaninternationalretail holdingcompany thatisbasedin SouthAfrica.Steinhoffdealswithmainlyinfurnitureandhousehold

goods,whichoperatesinEurope,Africa,Asia,theUnitedStates,andAustralia.

Steinhoffwasfoundedin1964by BrunoSteinhoff in Westerstede,Germany.BrunoSteinhoffsourcedfurniturefromcommunistEuropeandsolditinWesternEurope.In1997,Steinhoffacquired35%ofSouth-Africa-basedGommagomma,preparingforamergerthefollowingyear.ThecompanymoveditsheadquarterstoSouthAfricain1998,attractedbythelowproductioncosts,andwentpubliconthe JohannesburgStockExchange thatsameyear.[3]

AsofAugust2016,Steinhoffheldretailingactivitiesin30countries,counting6,500retailoutletsbelongingto40differentbrands,andemployingabout90,000employees.[1] 60%ofthecompany'srevenue,andtwo-thirdsofitsbenefits,aremadeinEurope.[3] SteinhoffexpandedintotheUnitedStatesmarketon7August2016.[7]Steinhoff'sSouthAfricanbrandsincludeHiFi Corp,Pennypinchers,Timbercity,Pep,Ackermans,ShoeCity,IncredibleConnection,andUnitrans.[8]IntheUK,Steinhoffownsthehighstreetbrands Cargo,[9] Harveys Furniture, BensonsforBeds,Sleepmaster and Pep&Co.

InAustralia,SteinhoffoperatesstoresintheFreedomGroupwithitsbrandsFreedomFurniture(since1980,nowtradingasFreedom),BayLeatherRepublic(stylised asBLR),andabedandbedroomfurniturefranchise- initiallyas"Capt’n Snooze",(since1974)shortenedto"Snooze"in2006.TheacquisitionoflocalfurnituremanufacturerandretailerFantasticFurniturehasprovedsignificanttoSteinhoff'sgrowthinAustralia.ProductandbrandingcrossoversarecommonpracticewithintheretailofferingsofthestoresinAustraliaandUKbrandssuchasCargo.[

TENANTSUMMARY

StockPhoto


LOCATIONINFORMATION

TRIOcpg.com

TheMattressFirmiscentrallylocatedineasternJeffersonCounty,Louisville,KY.ItisconvenientlylocatedrightoffI-264(WattersonExpressway)and10milesfromdowntownLouisville.TheWattersonExpresswayinthisareahas166,000carsperdayandBardstownRoadhas43,000carsperday.Itisdenselypopulatedwith15,331peopleina1mileradiusofMattressFirm,98,937ina3mileradius,and248,250withina5mileradius.

CostcoopeneditsnewestLouisvillelocationinAugust2016alongwithanewChick-fil-A,Verizon,MattressFirmandStarbucks.ThetradeareaalsoincludesTarget,WalmartSuperCenter,Lowe’s,KrogerandBurlingtonCoatFactory.Theregionaltradeareadrawscustomersfrom20to30milesduetoitscentrallocationandthebigboxanddestinationretailerslocatedhere.

RegionalTradeArea


SUMMARYPROFILE2000-2010Census,2017Estimateswith2022Projections

3337BardstownRd 1miradius

3miradius

5miradiusLouisville,KY40218-4601

POPU

LATION

2017EstimatedPopulation 15,331 98,937 248,2502022ProjectedPopulation 15,561 100,134 251,8542010CensusPopulation 15,145 98,102 244,1412000CensusPopulation 14,869 95,549 241,967ProjectedAnnualGrowth2017to2022 0.3% 0.2% 0.3% HistoricalAnnualGrowth2000to2017 0.2% 0.2% 0.2% 2017MedianAge 38.5 39 38.7

HOUS

EHOLDS 2017EstimatedHouseholds 7,363 44,415 113,947

2022ProjectedHouseholds 7,643 45,963 118,1772010CensusHouseholds 7,117 43,121 109,5902000CensusHouseholds 7,111 42,427 107,253ProjectedAnnualGrowth2017to2022 0.8% 0.7% 0.7% HistoricalAnnualGrowth2000to2017 0.2% 0.3% 0.4%

RACEAND

ETHN

ICITY 2017EstimatedWhite 66.7% 70.3% 74.6%

2017EstimatedBlackorAfricanAmerican 24.9% 22.0% 17.6% 2017EstimatedAsianorPacificIslander 2.3% 2.4% 2.7% 2017EstimatedAmericanIndianorNativeAlaskan 0.3% 0.2% 0.2% 2017EstimatedOtherRaces 5.8% 5.1% 4.8% 2017EstimatedHispanic 6.9% 6.4% 6.0%

INCO

ME

2017EstimatedAverageHouseholdIncome $52,623 $70,922 $72,7792017EstimatedMedianHouseholdIncome $44,381 $58,149 $58,3572017EstimatedPerCapitaIncome $25,509 $32,016 $33,553

EDUC

ATION

(AGE

25+)

2017EstimatedElementary(GradeLevel0to8) 3.0% 3.1% 2.9% 2017EstimatedSomeHighSchool(GradeLevel9to11) 4.6% 5.1% 5.2% 2017EstimatedHighSchoolGraduate 28.2% 23.5% 23.4% 2017EstimatedSomeCollege 24.2% 21.5% 21.0% 2017EstimatedAssociatesDegreeOnly 8.3% 7.4% 7.6% 2017EstimatedBachelorsDegreeOnly 18.9% 21.9% 22.7% 2017EstimatedGraduateDegree 12.8% 17.4% 17.2%

BUSINE

SS 2017EstimatedTotalBusinesses 827 5,044 13,3882017EstimatedTotalEmployees 7,807 69,287 177,4502017EstimatedEmployeePopulationperBusiness 9.4 13.7 13.32017EstimatedResidentialPopulationperBusiness 18.5 19.6 18.5

TRADEAREADEMOGRAPHICS

ConfidentialDisclaimerThisConfidentialOfferingMemorandumhasbeenpreparedbyTRIOCommercialPropertyGroup(“TRIO”)andisbeingfurnishedtoyou solelyforthepurposeofyourreviewofthecommercialpropertylocatedat3337BardstownRoad,Louisville,KY40218 (the“Property”).ThematerialcontainedinthisOfferingMemorandumshallbeusedforthepurposesofevaluatingthePropertyforacquisitionandshallnotbeusedforanypurposeormadeavailabletoanyotherpersonwithouttheexpresswrittenconsentofTRIOCommercialPropertyGroup(“Broker”).ByacceptingtheConfidentialOfferingMemorandum,youacknowledgeandagreethat:(a)alloftheinformationcontainedhereinandanyotherinformationyouwillbereceivinginconnectionwiththistransaction,whetheroral,writtenorinanyotherform(collectively,the“Materials”),isconfidential;(b)youwillnotreproducetheConfidentialOfferingMemoranduminwholeorinpart;(c)ifyoudonotwishtopursuethismatter,youwillreturnthisConfidentialMemorandumtoTRIOassoonaspracticabletogetherwithallothermaterialsrelatingtothePropertywhichyoumayhavereceivedfromTRIO;and(d)anyproposedactionsbyyouwhichareinconsistentinanymannerwiththeforegoingagreementswillrequirethepriorwrittenconsentofTRIO.ThisConfidentialOfferingMemorandumhasbeenpreparedbyTRIO,baseduponcertaininformationpertainingtothePropertyandanyinformationobtainedfromTRIOtoassistinterestedpartiesinmakingtheirownevaluationofthePropertyisofferedonanorepresentationorwarrantyprovisionotherthancustomarywarrantiesoftitleandissoldonan“as-is,where-is”basisandwithallfaults.Thematerialandtransactiondoesnotpurporttobeall-inclusive.ThisConfidentialOfferingMemorandumcontainsdescriptivematerials,financialin-formationandotherdatacompiledfortheconvenienceofpartiesinterestedintheProperty.TheMaterialsarebeingdeliveredbyTRIOtoprospectiveinvestorswiththeunderstandingthatitisnotallinclusiveandthatitisqualifiedinitsentiretybyindependentinvestigationbyprospectiveinvestorsofthosematterswhichtheydeemappropriateinevaluatingthisofferingwithoutrelianceuponTRIO,theBrokeroranyoftheirrespectiveaffiliatesoranyoftheinformationsetoutintheMaterials.NeitherTRIO,theBroker,noranyoftheirrespectiveaffiliateshaveindependentlyverifiedanyoftheinformationcontainedhereinorinanyoftheMaterials,andnorepresentationsorwarrantiesastotheaccuracyorcompletenessthereoforofanyotherkind whatsoeveraremadeorintendedandnoneshouldbeinferred.TRIOexpresslydisclaimsanyandallliabilityforstatementsorrepresentations,expressorimplied,containedhereinorfor omissionsfromtheMaterialsorforanyotherwritten,oralorotherformatofcommunicationtransmittedtoaprospectiveinvestorinthecourse of itsevaluationoftheproposedtransaction.Allsummariesanddiscussionsofdocumentationand/orfinancialinformationcontainedhereinarequalified intheirentiretybyreferencetotheactualdocumentsand/orfinancialstatements,whichuponrequestmaybemadeavailable.Thetermsandconditionsdescribedhereinaresubjecttochangewithoutnotice.ThisConfidentialOfferingMemorandumdoesnotconstituteanoffertoacceptanyinvestmentproposalbutismerelyasolicitationofinterestwithrespecttotheinvestmentdescribedherein.TheConfidentialOfferingMemorandumdoesnotconstituteanofferofsecurity.Theinvestmentdescribedhereinmaybefinancedorwithdrawnfromthemarket,withoutpriornotice.ByacceptingthisConfidentialOfferingMemorandumyouagreetoreleaseTRIOandholditharmlessfromanykindofclaim,expense,orliabilityarisingoutofyourdiscoveryorpurchaseoftheProperty.TRIOreservestherighttorequestthereturnoftheMaterialsatanytime.OwnershipofthePropertyreservestherighttonegotiate withoneormoreprospectiveinvestorsatanytime.


mattress firm - 3337 bardstown rd -...

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