Mattress Firm – Leasehold Interest
Hanover Park, IL
| Price | $1,250,000 |
| Cap Rate | 9.00% |
| NOI | $112,520 |
| Lease Term | 15 Years |
| Lease Type | Net, with Landlord Responsible for Roof and Structure |
| Rental Increases | 10% Rental Increases Every 5 Years |
| Year Built | 2016 |
| Building Size | 4,000 SF |
| Lot Size | ±0.682 acres (± 29,708 SF) |
| Status | Available |
| Lead Broker Information | Michael T. Yuras, CCIM Executive Managing Director 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Managing Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 Cushman and Wakefield Inc. LIC. # 00616335 This property is listed in conjunction with Illinois-licensed real estate broker Cushman & Wakefield, Inc. |
Investment Highlights
LONG-TERM CORPORATE NET LEASE WITH SCHEDULED RENT INCREASES
» Strong corporate guarantee
» 15-year net lease with two, five-year option periods
» 10% rental increases every five years, providing a hedge against inflation
» Mattress Firm has a “B1” credit rating from Moody’s, with over 3,500 locations nationwide and over $1.8 billion in annual revenue
RARE LEASEHOLD INTEREST OPPORTUNITY
» High yield investment with corporate guarantee
» Property is 100% depreciable, providing increased cash flow
EXCELLENT LOCATION IN HANOVER PARK’S RETAIL CORRIDOR
» Outparcel to Menards, one of Hanover Park’s top employers
» Excellent access and visibility from Barrington Road – 38,500 AADT
» Population of 266,814 within a five-mile radius, and a higher-than-average household size within one-mile of the site, providing a large customer base
» Near Stratford Square Mall, which is slated to undergo a $30 million upgrade
CHICAGO MSA LOCATION WITH STRONG DEMOGRAPHICS
» Average household income is $93,893 within a five-mile radius
» Chicago MSA houses numerous Fortune 500 corporate headquarters, including Boeing and McDonald’s
2016 CONSTRUCTION
» High-quality, built-to-suit construction
» Features latest Mattress Firm brick-prototype
» Recent construction, limiting near-term deferred maintenance or capital costs
Property Description
The property is located on the hard corner of Barrington Road and Bristol Lane, an intersection with access and visibility to 38,500 vehicles per day. The site is an outparcel to Menards, one of the area’s top employers, and is located along Hanover Park’s main retail corridor. Other major tenants nearby include Sam’s Club, Walgreens, McDonald’s, Bank of America, Target, Home Depot, and Ross Dress for Less, among many others. Stratford Square Mall, which is slated for a $30 million-plus renovation, is less than five miles southeast of the site, and is anchored by Burlington Coat Factory, Macy’s, Sears, and Caron’s. It is expected to provide a sales tax boost for the village.
The property also benefits from its central location in the Chicago metropolitan statistical area (MSA), with 266,814 people living within a five-mile radius of the property–providing a large customer base for Mattress Firm. Less than a mile south of the site, Metra’s Milwaukee West Line, which runs between Elgin, Illinois and Chicago, Illinois sees over 1,400 passengers a day from the Hanover Park stop. O’Hare International Airport is located 17 miles east. Downtown Chicago is only 45 minutes away by rail, and offers various sports and art attractions to Hanover Park residents.
