OFFERING MEMORANDUM

MATTRESS WAREHOUSE2 0 6 4 S . Q u e e n S t re e t - Yo rk , PA

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TABLE OF CONTENTSSection 1: Investment SummaryProperty Overview......................................................6Investment Highlights & Overview................................7Section 2: Tenant OverviewMattress Warehouse...................................................9

Section 3: Market OverviewAerial Map..............................................................11Regional Map..........................................................12

Marcus & Millichap2005 Market Street #1510

Philadelphia, PA 19103

P: 215.531.7000

www.marcusmillichap.com

NON-ENDORSEMENT AND DISCLAIMER NOTICENON-ENDORSEMENTSMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The

presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of

Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for

the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the

party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus &

Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only

a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.

Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject

property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or

absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improve-

ments thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the

subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus

& Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation

regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.

All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus

& Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

Mark KrantzNational Retail Group Philadelphia, PALicense: PA RS336064

OFFERED EXCLUSIVELY BY

Derrick DoughertyFirst Vice PresidentPhiladelphia, PACell: 610.329.5886 Office: 215.531.7026Email: derrick.dougherty@MarcusMillichap.com License: PA RS305854

Scott WoodardNational Retail GroupPhiladelphia, PALicense: PA RS329242

Steven GarthwaiteNational Retail Group Philadelphia, PACell: 215.390.4549Office: 215.531.7025Email: steve.garthwaite@MarcusMillichap.com License: PA RS332182

Marcus & Millichap Real Estate Investment Services of Seattle, Inc. License: RB062197C

Broker of Record: Anthony PalumboLicense: PA RM423958

Queensgate Shopping Center

WINE & SPIRITS

BON TON

M

MONROMUFFLER/BRAKE

York Suburban Senior High School

SOUTH QUEEN ST.

SOUTH QUEEN ST.

M

SOU

TH Q

UEE

N S

T. (1

7,02

3 V

PD)

PROPERTY ANALYSIS

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PROPERTY OVERVIEW:

NET OPERATING INCOME

$112,000YORK,PA PRICE CAP RATE

Mattress Warehouse $1,600,000 7.00%

Lease SummaryTenant Mattress Warehouse

Guarantor Corporate

Address 2064 S Queen St, York PA

Building Size 5,600

Lot Size .71 Acres

Year Built / Renovated June 2017

Lease/ Rent Commencement June 1, 2017

Lease/ Rent Expiration May 31, 2027

Base Lease Term 10 Years

Lease Term Remaining 8.7 Years

Annual Base Rent $112,000.00

Rent Increases 10% in Year 6

Option Increases 10%

Lease Type NN

Landlord Responsibilities Roof and Structure

Insurance Tenant

Taxes Tenant

CAM Tenant

Utilities Tenant

Financials/Sales Reporting None

YORK, PA 1 MILE 3 MILES 5 MILES

Population 7,505 77,144 153,765

Households 3,464 29,740 60,023

Household Income $80,267 $67,673 $69,453

Traffic Counts 17,023 VPD

*Loan information is subject to change. Contact your Marcus and Millichap Capital Corporation representative.

Loan Information:• 70% LTV• 5 Years Fixed 5.125%• 25 Year Amortization• Full Recourse

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Marcus & Millichap, on behalf of ownership, is pleased to exclusively offer a newly constructed Mattress Warehouse, located at 2064 South Queen St in York, Pa.The subject property is strategically located on South Queen Street in the heart of the retail trade area. Neighboring retailers include Sheetz, CVS, Walgreens, Taco Bell, Starbucks and McDonald’s as well as many other national retailers. South Queen Street is a dense retail corridor that runs from downtown York. The property is located less than a half-mile from Interstate 83 which provides regional access to Lancaster and Harrisburg.

This location was built to suit for Mattress Warehouse in 2016. The lease has over seven years remaining in the lease term and ten percent annual rent increases beginning in 2021. The core real estate fundamentals of the site provide investors with a well located piece of real estate in a mature retail corridor.

Mattress Warehouse is the number one independently owned American retailer with over 250 stores throughout the Mid-Atlantic region. Serving customers for more than 25 years, it is their mission to provide each customer with a relaxed and educational buying process that provides the best overall sleep experience with quality products at the best possible price. Mattress Warehouse carries the largest selection of quality name brand bedding.

INVESTMENT HIGHLIGHTS:

INVESTMENT OVERVIEW:

• MATTRESS WAREHOUSE IS THE NUMBER ONE INDEPENDENTLY-OWNED AMERICAN RETAILER WITH OVER 250 STORES

• NEW CONSTRUCTION WITH OVER SEVEN YEARS REMAINING OF LEASE TERM (BUILT IN 2016)

• 10 PERCENT RENT INCREASE COMING IN YEAR SIX | OCCURS JUNE 2021

• STRATEGICALLY LOCATED ON SOUTH QUEEN STREET | MAIN RETAIL CORRIDOR IN YORK COUNTY

• LESS THAN HALF A MILE FROM I-83 ON RAMP WITH OVER 49,000 VPD • HIGH BARRIER TO ENTRY LOCATION – VERY MATURE SUBMARKET WITH NATIONAL TENANTS

• GREAT INHERENT REAL ESTATE FUNDAMENTALS AND DEMOGRAPHICS

TENANT OVERVIEW

SOUTH QUEEN ST. (17,023 VPD)

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Mattress Warehouse opened its first store in November 1989 in Frederick, MD.

The first Mattress Warehouse store was located in a mere 1200 square foot area

and the first warehouse was a self-storage locker! Times have changed and the

company now have over 200 convenient Mattress Warehouse store locations

with plans to continue growing. With a strong focus on customer service, the

company sales staff is trained to listen to each customer, addressing individual

needs and concerns to provide a positive sleep experience.

Mattress Warehouse carries the widest selection of quality name brand bedding

– Serta, Sealy, Beautyrest, Stearns & Foster, Tempur-pedic and more! Mattress

Warehouse can suit any type of sleeper with a mattress that is comfortable and

affordable. The company also offers a wide selection of sleep products too.

Shoppers can also find pillows, sheets, mattress protectors, bed frames, plat-

form beds and more.

TENANT OVERVIEW

Tenant Name Mattress Warehouse

No. Of Locations 200 +/-

Headquartered Frederick, MD

Web Site www.mattresswarehouse.com

OWNERSHIP:Private ComPany

NO. OF LOCATIONS200 +/-

WEBSITE:www.mattresswarehouse.com

REPRESENTATIVE PHOTO

TENANT OVERVIEW:

MARKET OVERVIEW

30 Miles to HarrisburgTOTAL POPULATION 49,530 (2016)

17,023 VPDIN CLOSE PROXIMITY TO TWO MAJOR ROADS

Major Retail CorridorNEAR TWO MAJOR CORRIDORS

South Queen St.

Queensgate Shopping Center

WINE & SPIRITS

BON TON

MONROMUFFLER/BRAKE

IACONOHAIR STYLIST

Sout

h Qu

een

St.

Veterans of Foreign Wars Memorial Hwy

Veterans of Foreign Wars Memorial Hwy

Subject Property

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REGIONAL MAP:

P

hi

ladelphia

N

ew York

90 Miles to Washington

YORK, PA 1 MILE 3 MILES 5 MILES

Population 7,505 77,144 153,765

Households 3,464 29,740 60,023

Household Income $80,267 $67,673 $69,453

Traffic Counts 17,023 VPD

100 Miles to Philadelphia

200 Miles to New York

W

ashington

B

altimore

60 Miles to Baltimore

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DISCLAIMER NOTICE:

Marcus & Millichap hereby advises all prospective purchasers of Single Tenant Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a single tenant property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a single tenant property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any single tenant property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating areplacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this single tenant property.

Mark KrantzNational Retail Group Philadelphia, PALicense: PA RS336064

OFFERED EXCLUSIVELY BY

Derrick DoughertyFirst Vice PresidentPhiladelphia, PACell: 610.329.5886 Office: 215.531.7026Email: derrick.dougherty@MarcusMillichap.com License: PA RS305854

Scott WoodardNational Retail GroupPhiladelphia, PALicense: PA RS329242

Marcus & Millichap2005 Market Street #1510

Philadelphia, PA 19103

P: 215.531.7000

www.marcusmillichap.com

Steven GarthwaiteNational Retail Group Philadelphia, PACell: 215.390.4549Office: 215.531.7025Email: steve.garthwaite@MarcusMillichap.com License: PA RS332182

OFFERING MEMORANDUM

MATTRESS WAREHOUSE2 0 6 4 S . Q u e e n S t re e t - Yo rk , PA