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  Mattress Firm


Average Property & Lease

Average Sale Price$2,534,316
CAP Rate (12mo avg with 10+ lease term)6.60%
NOI$167,808
$/Square Foot$512
Building Size4,000 - 10,000 sf
Lot Size0.8 acres
Lease Term12 Years NN
Escalations10% Every 5 Years
CREDIT RATING
B+
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

Mattress Firm is a highly sought after brand that has been aggressively expanding in recent years. Their freestanding stores are one of the most highly demanded net lease investments. Mattress Firm properties are well located on main commercial thoroughfares, typically feature a 4,000 - 10,000 +/- SF building, and are usually situated on 0.80 acres of land. Mattress Firm net leases properties tend to have a 12-year primary term NN lease. Newly constructed Mattress Firm sites usually offer a NNN lease. The lease terms typically call for 10% increases in rent every 5 years.

Mattress Firm's retail locations are either company-owned and operated or operated by corporately guaranteed franchisees. Almost all storefronts occupy freestanding buildings or end cap retail spaces. Pursuing this strategy, the company has doubled their store count in three years, with a large presence nationwide. Their unique combination of merchandising breadth, distinctive store concepts and market integration has translated into a differentiated customer shopping experience that will continue to benefit both the firm and its clientele alike.

Pros

Cons

  • Mattress Firm is publicly traded on NASDAQ (MFRM)
  • Operates 2,000 locations and 70 distribution centers in 40 states
  • Largest bedding retailer in the United States
  • Most locations are NN Leases, so Landlord would be responsible for roof & structure
  • Tough competition
Tenant Description

Founded in Houston, TX in 1986, Mattress Firm is one of the nation's premier specialty bedding retailers, offering a broad selection of both traditional and specialty mattresses, bedding accessories and related products. With the largest geographic footprint in the United States among multi-brand mattress specialty retailers, Mattress Firm not only provides sleep solutions, but opportunities in hundreds of communities. What makes Mattress Firm different? Aside from an aesthetically pleasing and unobtrusive store environment, the highly trained sales professionals demonstrate exceptional product and sleep knowledge to assist the consumer in making the best bedding selection for them. Mattress Firm's success and proven track record allows them to offer solid guarantees to further ensure customer satisfaction. As of January 28, 2014 the total number of Company-operated stores was 1,225 across 33 states.

Recent Acquisitions:

Oct 20, 2014 - 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.

Sep 30, 2014 - Mattress Firm Completes Acquisition of Back to Bed, Bedding Experts and Mattress Barn Retail Stores.


MATTRESS FIRM TREND
CAP Rate

2014 avg: 7.39%

2015 avg: 7.15%

RECENT SALES

Raleigh, NC

$2,106,000 | 7.55%

Phoenix, AZ

$1,883,175 | 7.59%

MORE INFO
www.mattressfirm.com
Google Finance: MFRM
Google News: MFRM