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MATTRESS FIRMMOUNTAIN VIEW, CA
15-YEAR CORPORATE LEASE
2
Zoomed-Out AerialSurrounding Retail & Office Tenants
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
EL CAMINO REAL
SHOWERS DRIVE
LOS ALTOS SQUARE
2
MATTRESS FIRM
4.50%CAP
$6,600,000PRICE
2496 W EL CAMINO REAL, MOUNTAIN VIEW, CA 94040
15 year corporate lease w/ 10% rent increases every 5 years
Irreplaceable hard corner signalized intersection
Strong performing unit with below market rent
$179,000 Average Household Incomes in 3-Mile Radius
Mountain View is home to Google Headquarters
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
LEASABLE SF4,906 SF
LEASE EXPIRATION12/31/2034
LEASE TYPECorporate
NOI*$297,024
YEAR RENOVATED2018
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Overview
THE OFFERING consists of a brand new net leased Mattress Firm in Mountain View, on the Los Altos border (across the street). The property is located on a hard corner, signalized intersection with dominant visibility, unmatched retail synergy, and over 68,000 vehicles per day at the intersection. It is also one of the only properties in the area with dedicated parking and signage, which gives it a significant advantage over other single user retail sites in the area. The subject property is the access point to the other parcels from Showers Drive off El Camino. It is 1 of only 3 blocks in Mountain View with “Village Corner” zoning, providing for the highest density development possible along the El Camino.
Within just one block there is a Target, Walmart Supercenter, Safeway, Trader Joe’s, Whole Foods, Kohl’s and many other major retailers. Also within one block is a new 450,000 square foot office building leased to LinkedIn, a 168 room hotel, hundreds of apartment units, and an 8 screen cinema complex preleased to ICON Theaters, all built within the last year. This will contribute to the upward rent pressure created by these recent developments coupled with the growth of Google driving jobs and people to the area.
Contact the team
294,000+ RESIDENTS WITH AVERAGE HOUSEHOLD INCOMES OF $178K+ WITHIN A 5-MILE RADIUS
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
JOHN [email protected]: 415.274.2715CA DRE# 01440360
SUBJECT PROPERTY
JUSTIN [email protected]: 415.274.7392CA DRE# 01895013
4
Investment Highlights
RICK [email protected]: 415.274.2709CA DRE# 01792433
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Zoomed-Out Aerial
101
101
85
82
8282EL CAMINO REAL
JUNIPERO SERRA
BOULEVARDFOOTHILL
EXPRESSWAY
BAYSHORE FREEWAY
OREG
ON
EXPRESSW
AY
PAGE M
ILL ROA
D
SAN
D H
ILL
ROA
D
SAN ANTONIO ROAD
PALO ALTO MEDICAL
FOUNDATION
VA HEALTHCARE
FOOTHILL COLLEGE
CHALLENGER SCHOOL
STANFORD UNIVERSITY
STANFORD HOSPITAL
AND CLINICS
LOS ALTOS HIGH
SCHOOL
ALMOND ELEMENTARY
SPRINGER ELEMENTARY
COVINGTON ELEMENTARY
EGAN JR. HIGH SCHOOLTERMAN
MIDDLE SCHOOL
LUCILLE M. NIXON
ELEMENTARY
ESCONDIDO ELEMENTARY
JORDAN MIDDLE SCHOOL
EL CARMELO ELEMENTARY
PALO ALTO HIGH
SCHOOL
SAN FRANCISCO
45 MILES
40,500VPD162,000
VPD
230,000VPD
121,000 VPD
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Zoomed-Out Aerial
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43,000 VPD
SAN ANTONIO ROAD
EL C
AMIN
O RE
AL
RENGSTORFF AVENUE
CEN
TRAL EX
PRESSWAY
CALIFORNIA
LATH
AM S
TREE
T
82
STR
EET
STATE OF CALIFORNIA
PALO ALTO MEDICAL
FOUNDATION
SILICON VALLEY
COMMUNITY FOUNDATION
WALDORF SCHOOL OF THE
PENINSULA
COMMUNITY SCHOOL OF MUSIC AND
ARTS
CRESCENT PARK CHILD
DEVELOPMENT CENTER
SCHOOL FOR INDEPENDENT
LEARNERS
PORTNOV COMPUTER
SCHOOL
MOUNTAIN VIEW LOS
ALTOS MONTESSORI
SCHOOL
SAN FRANCISCO
45 MILES
40,500 VPD
11,000 VPD
43,000 VPD
Zoomed-In Aerial
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THE VILLAGE AT SAN ANTONIO
CENTER
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
PRIVATE COMPANIES VALUED AT $1 BILLION+UBER // AIRBNB // PALANTIR TECHNOLOGIES // PINTEREST // DROPBOX // STRIPE // LYFT // HOUZZ // SOCIAL FINANCE // TANIUM // CREDIT KARMA// INSTACART // DOCUSIGN // CONTEXTLOGIC // BLOOM ENERGY // ZENEFITS // QUORA // REDDIT // COINBASE // RAZER // 23ANDME // THUMBTACK// CLOVER HEALTH // TANGOME // RUBRIK // AUTOMATTIC // APPDIRECT // KATERRA // CARBON 3D // ADAPTIVE BIOTECHNOLOGIES // ZOOM TECHNOLOGIES // ZETA INTERACTIVE //MEDALIA // PROCORE TECHNOLOGIES, NEXTDOOR // CLOUDFLARE // GLASSDOOR // EVENTBRIGHT
NEARBY CITIES
City Population Median IncomeMountain View 77,600 $109k+Los Altos 30,100 $188k+ Palo Alto 66,650 $137k+San Jose 1.03 million $101k+Sunnyvale 152,700 $103k+Cupertino 60,300 $148k+Santa Clara 122,700 $102k+San Francisco 813,500 $103k+
SAN FRANCISCO BAY AREA San Francisco is the fourth most populous city in California, and the fourteenth most populous city in the United States.San Francisco has a diversified service economy, with employment spread across a wide range of professional services, including financial services, tourism, and high technology. The Bay Area has more Fortune 500 companies (36 with combined sales of $1.3 trillion) than any other U.S. region except New York City. This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations
or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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About The Region
SAN FRANCISCO
FORTUNE 500 COMPANIES #3 APPLE // #27 ALPHABET (GOOGLE) // #47 INTEL // #59 HEWLETT PACKARD ENTERPRISE // #60 CISCO SYSTEMS // #81 ORACLE // #98 FACEBOOK // #187 VISA // #198 SYNNEX // #264 PAYPAL // #265 APPLIED MATERIALS // #310 EBAY // #314 NETFLIX // #383 TESLA // #387 NVIDIA // #405 FRANKLIN RESOURCES // #414 SANMINA // #440 LAM RESEARCH // #443 ADOBE SYSTEMS // #465 SYMANTEC // #468 NETAPP // #493 ROBERT HALF INTERNATIONAL // #498 YAHOO
VILLAGE AT SAN ANTONIO
The Village at San Antonio Station is a mixed-use development in Mountain View that sits on the southeast side of San Antonio Road just north of El Camino Real. The project is part of a 56-acre development that includes residential buildings, retail, hospitality and office properties. The two, six-story buildings offer a total of 456,760 rentable square feet with a potential to expand to 556,000 square feet in the future. The entire development offers over 20 restaurants, a 330-unit Carmel the Village apartments and a 168-room Hyatt Centric Village Hotel and Conference Center. The complex also has an eight-screen cinema, as well as two 24-hour fitness centers.
680 additional residential units are under construction in the area, as well as over 300 units planned across California Ave.
The office component, which WeWork just took over, has one building with roughly 218,000 square feet and the other with approximately 239,000 square feet. Facebook is expanding its Silicon Valley office presence via a massive lease with WeWork.
The proximity of the development to other corporate users offers some indication of the buildings’ overall opportunity. Google has a property just blocks away from the development, and the Stanford Research Park is just minutes to the north on El Camino Real.
This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 8
Immediate Area Development
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THE VILLAGE AT SAN ANTONIO CENTER IS A 20.6 ACRE DEVELOPMENT ACROSS THE STREET FROM THE SUBJECT PROPERTY
Surrounding Retailers
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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
PRICE $6,600,000 Capitalization Rate: 4.50%
Total Rentable Area (SF): 4,906
Lot Size (AC): 0.27
STABILIZED INCOME PER SQUARE FOOTScheduled Rent $60.54 $297,024
Effective Gross Income $60.54 $297,024
LESS PER SQUARE FOOTTaxes NNN $0.00
Insurance NNN $0.00
Total Operating Expenses NNN $0.00
EQUALS NET OPERATING INCOME $297,024
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Income & Expense
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
TENANT INFO LEASE TERMS RENT SUMMARY
TENANT NAME SQ. FT. CURRENT RENT
MONTHLY RENT
YEARLYRENT
MONTHLY RENT/FT
YEARLYRENT/FT
Mattress Firm 4,906 1/1/2019 12/31/2024 $297,024 $24,752 $297,024 $5.05 $60.54
1/1/2024 12/31/2029 $27,226 $326,712 $5.55 $66.59
1/1/2029 12/31/2034 $29,945 $359,336 $6.10 $73.24
Option 1 1/1/2034 12/31/2039 $32,942 $395,304 $6.71 $80.58
Option 2 1/1/2039 12/31/2044 $36,235 $434,820 $7.39 $88.63
TOTALS: 4,906 $297,024 $24,752 $297,024 $5.05 $60.54
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Rent Roll
BASE RENT
DATE RANGE MONTHLY RENT ANNUAL RENT
1/1/2019 - 12/31/2024 $24,752 $297,0241/1/2024 - 12/31/2029 $27,226 $326,7121/1/2029 - 12/31/2034 $29,945 $359,336
OPTION RENTSDATE RANGE MONTHLY RENT ANNUAL RENT
#1. 1/1/2034 - 12/31/2039 $32,942 $395,304#2. 1/1/2039 - 12/31/2044 $36,235 $434,820
RENT
TENANT Mattress FirmBUILDING SF 4,906 SFLEASE TYPE CorporateTERM 15 YearsRENT COMMENCEMENT 1/1/2019EXPIRATION 12/31/2034OPTIONS Two 5-year options
PREMISES& TERM
TAXESTenant shall pay to Landlord Tenant’s share of all real property taxes.
INSURANCETenant shall reimburse Landlord, as Additional Rent, one hundred percent (100%) of the premiums paid by Landlord for Landlord’s Insurance. Tenant, at Tenant’s sole cost and expense, shall obtain and maintain in effect commencing with delivery of possession to Tenant, insurance policies providing for the following coverage: (i) all-risk property insurance, (ii) a commercial general liability naming Landlord as additional insured.
UTILITIES
Tenant agrees to pay all charges for utilities consumed at the Premises.
TENANT’S OBLIGATIONSTenant is responsible for all nonstructural portions of the premise including HVAC.
LANDLORD’S OBLIGATIONSLandlord is responsible for roof and structure.
EXPENSES
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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Lease Abstract
Founded in 1986, Houston-based Mattress Firm is the nation’s first and only border-to-border, coast-to-coast specialty bedding retailer. With over 2,500 stores across 49 states, Mattress Firm is the nation’s largest multi-brand mattress retailer. Mattress Firm offers conventional mattresses, specialty mattresses, including viscoleastic foam mattresses and YuMe sleep system (a revolutionary sleep system made of foam produced from coconut oil), and bedding related accessories (bed frames, mattress pads, pillows). The stores carry a broad assortment of national mattress brands and exclusive brands. Company revenues are over $2.55 billion.
See page 14 for more information.
ABOUT MATTRESS FIRM
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
2,500+MATTRESS FIRM
LOCATIONS
#1NATION’S LARGEST
MATTRESS RETAILER
$2.55B2016 REVENUE
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Tenant Overview
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MATTRESS FIRM COMPLETES BALANCE SHEET RESTRUCTURING AND REAL ESTATE OPTIMIZATION
November 12, 2018 (Houston) Mattress Firm, Inc. (“Mattress Firm” or “the Company”), the nation’s leading specialty mattress retailer, today announced that it has successfully completed its financial restructuring and emerged from Chapter 11. The Company moves forward with an optimized store footprint of approximately 2,600 stores across the country and $525 million of committed exit financing to support operations and future growth initiatives, including a $125 million revolving credit facility that will be undrawn at closing.
Steve Stagner, Executive Chairman, President and CEO of Mattress Firm, said, “This is an exciting day for Mattress Firm as we emerge a stronger and more competitive company. With an optimized store footprint, stronger balance sheet and significant liquidity, we will be able to more efficiently focus on our strength – delivering the best beds at the best value to millions of customers across the country. We knew that our unprecedented growth had led to duplicative store locations in many of our markets. Now, having completed our operational and financial restructuring, we have the right store locations to not only better serve our customers, but also to fuel future growth. Going forward, we will be intensely-focused on enhancing our product offering, driving disciplined and results-oriented operations and building an integrated and educational shopping experience.”
Mr. Stagner continued, “Our successful emergence from Chapter 11 is a testament to the hard work of our associates. It was their tremendous loyalty, effort and dedication that allowed us to efficiently complete this restructuring process in just 48 days. I am honored to lead this incredible team forward as we continue to provide customers with unmatched value and service.”
Sidley Austin LLP served as the Company’s legal counsel, AlixPartners LLP served as its financial advisor, and Guggenheim Securities, LLC served as its investment banker and restructuring advisor. A&G Realty Partners assisted the Company with its store closing and lease restructuring program. Barclays served as the sole arranger and sole bookrunner of the exit facilities, and Paul Hastings LLP served as counsel to Barclays.
READ THE FULL ARTICLE
In the News
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
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POPULATION
1-MILE 3-MILES 5-MILES
2010 28,681 132,257 269,571
2018 33,602 146,868 294,118
2023 37,023 156,577 309,861
2018 HH INCOME
1-MILE 3-MILES 5-MILES
Average $142,913 $179,870 $178,653
Median $103,394 $124,757 $122,167
SANTA CLARA COUNTY TOP EMPLOYERS
EMPLOYER # OF EMPLOYEES
Apple 25,000
Alphabet/Google 20,000
County of Santa Clara 18,244
Stanford University 16,919
Cisco Systems 15,700
MOUNTAIN VIEW
SAN FRANCISCO (37 MILES)
THE AVERAGE HOUSEHOLD INCOME WITHIN A 3-MILE RADIUS
IS OVER $179K
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
Demographics
SAN JOSE (15 MILES)
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MOUNTAIN VIEW,CALIFORNIA
MOUNTAIN VIEW is characterized by many as the “start-up” community of Silicon Valley with a strong innovative network that develops and supports the greater Mountain View community. Major companies with offices in the city include Google, Mozilla, Symantic, and Microsoft.
Mountain View enjoys a strong and diversified local, but globally connected, economy. Mountain View has a dynamic mix of businesses ranging from large corporate businesses located in the North Bayshore to small start-up companies in the Downtown Mountain View to national retailers at the San Antonio Shopping Center. The active transit and civic centers complement the diverse number of businesses.
SILICON VALLEY is a major center and global leader in the tech, biotech, internet, and ecommerce sectors. Home to numerious tech giants and startups, Silicon Valley is located
on the southern and western edges of the San Francisco Bay. California’s economy is the largest within the United States and 5th largest globally, with a gross domestic product of $2.5 trillion. Silicon Valley alone contributes 10.4% of California’s total GDP.
SILICON VALLEY
7 MILLION
BAY AREA POPULATION (ESTIMATED)
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
DOWNTOWN SAN JOSE
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Location Overview
Silicon Valley is a major center and global leader in the tech, biotech, internet, and ecommerce sectors. Home to numerious tech giants and startups, Silicon Valley.
California’s economy is the largest within the United States and 5th largest globally, with a gross domestic product of $2.7 trillion. Silicon Valley alone contributes 10.4% of California’s total GDP.
Silicon Valley created 297,000 new jobs since 2010, with over 47,000 new jobs in 2017. The tech sector in Silicon Valley saw significant year-over-year job growth with 3.3%, while San Francisco saw 6.3% growth. Silicon Valley’s unemployment rate was 2.5% at the end of 2018, compared to 4.2% in California, and 3.9% in the U.S. overall.
Silicon Valley continues to be a high-income region, with average annual earnings reaching their highest level to date at $130,879 per household.
For more information, CLICK HERE.
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 17
SILICON VALLEY
SAN FRANCISCO
POPULATION
JOBS
GDP
LAND AREA
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Silicon Valley Economy
7.8% 2.2%
1.19% 0.03%
9.6% 4.2%
10.4% 4.9%
The Region’s share of California’s Economic Drivers
We’d love to hear from you.
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
JOHN [email protected]: 415.274.2715CA DRE# 01440360
JUSTIN [email protected]: 415.274.7392CA DRE# 01895013
CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM:
JOE CACCAMOJOHN ANDREINI
ZANDY SMITH
DAVE LUCAS
RICK SANNER
CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS
JACK NAVARRAJUSTIN SHARP
JUSTIN STARK
RICK [email protected]: 415.274.2709CA DRE# 01792433
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THE VILLAGE AT SAN ANTONIO
