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net lease mattress firm

Net Lease Mattress Firm Property For Sale

Date March 8, 2017

 

The Boulder Group is pleased to exclusively market for sale a fully leased two-tenant property located within the Chicago MSA in Skokie, Illinois. The property is occupied by a net lease Mattress Firm and Union Bank (d/b/a PurePoint Financial).  The property is strategically positioned at a signalized intersection with easy access and excellent visibility along the area’s primary thoroughfare.

The 5,205 square foot net lease Mattress Firm building was constructed in 2016 and is located at the signalized intersection of Skokie Boulevard and Gross Point Road East in a densely populated area.  The highly trafficked intersection experiences a combined traffic count of 37,200 vehicles per day.  Retailors located in the immediate area include Old Navy, Marshalls, Jewel-Osco, Walgreens, Chick-fil-A, Advance Auto Parts and Ross Dress For Less.  Located less than one-half mile north on Skokie Boulevard is Westfield Old Orchard, a 1.8 million square foot open-air shopping mall with over 140 stores anchored by Nordstrom, Bloomingdale’s, Macy’s and Lord & Taylor. Located less than one-half mile northeast on Gross Point Road is Skokie Hospital.  Skokie Hospital is part of NorthShore University HealthSystem and was named one of the Top 100 Cardiovascular Hospitals in the nation for cardiology and heart surgery programs.  There are over 149,285 people living within a three mile radius of the property with average annual household incomes in excess of $122,480.

The Mattress Firm lease commenced in July 2016 and has approximately fifteen years remaining on their lease with two renewal option periods.  The Union Bank lease commenced in September 2016 and has over six years remaining with two five-year option periods. Both tenants are responsible for their pro-rata share of taxes, insurance and common area maintenance.

Mattress Firm, with more than 3,500 stores across 49 states, has the largest geographic footprint in the United States among mattress retailers.  Mattress Firm operates as a subsidiary of Steinhoff International Holdings N.V. (“Steinhoff”), a South African-based retail holding company, dealing mainly in furniture and household goods.  Steinhoff has a primary listing on the Frankfurt Stock Exchange and a secondary listing on the Johannesburg Stock Exchange using the symbol SNH.  Steinhoff is an investment grade rated company with a Moody’s rating of Baa3.

PurePoint Financial, a division of Union Bank (MUFG Union Bank, N.A.), is a full-service bank in the United States and subsidiary of the Mitsubishi UFJ Financial Group (MUFG). MUFG is one of the world’s leading financial groups publically traded on the New York Stock Exchange (Symbol: MTU).  MUFG is an investment grade rated company with a Standard & Poor’s rating of A+.

 

INVESTMENT HIGHLIGHTS

  • Located within the Chicago MSA
  • New construction (2016)
  • Long term Mattress Firm lease with approximately fifteen years remaining
  • Positioned at a signalized intersection with exceptional visibility and access (37,200 VPD)
  • Densely populated and affluent area with an average household income in excess of $122,480 within a three-mile radius of the property
  • Rental escalations in primary terms and renewal option periods
  • Benefits from its close proximity to Westfield Old Orchard, the top shopping center in Chicago’s affluent North Shore suburbs
  • Credit Worthy Tenants

 

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