CHIPOTLE | MATTRESS FIRM - Constant...

16-18 Mall Road - BARBOURSVILLE, WEST VIRGINIA 25504

CHIPOTLE | MATTRESS F IRMO F F E R I N G M E M O R A N D U M

ACTUAL PROPERTY

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0331912 1


Financia l Overv iew

PRICE: $4,206,479

CAP RATE: 6.05%

NOI: $254,492

PRICE PER SQUARE FOOT: $562.36

RENT PER SQUARE FOOT: $32.05

YEAR BUILT: 2013

APPROXIMATE LOT SIZE: 0.88 Acres

GROSS LEASEABLE AREA: 7,480 SF

TYPE OF OWNERSHIP: Fee Simple

OFFERING SUMMARY

Tenant Guarantor GLA % of GLALease

Commencement

Lease

Expiration

Term

RemainingAnnual Rent Rent (PSF) Increases

Lease

TypeOptions

Mattress FirmMattress Firm,

Incorporated5,100 68.18% 8/1/2013 7/31/2023 6 Years $168,300 $33.00 10% Every 5 NN 4, 5-Year

Chipotle

Chipotle Mexican Grill

of Colorado, Limited

Liability Company

2,380 31.82% 2/1/2014 1/31/2024 6.5 Years $71,400 $30.00 10% Every 5 NN 4, 5-Year

Total 7,480 100% $239,700

BASE RENT $256,530*EXPENSE REIMBURSEMENTS

REAL ESTATE TAXES $17,332INSURANCE $7,546CAM $13,666TRASH REMOVAL REIMBURSEMENT $1,093

TOTAL EXPENSE REIMBURSEMENTS $39,636EFFECTIVE GROSS INCOME $296,166EXPENSES

REAL ESTATE TAXES $17,332INSURANCE $7,546CAM

ELECTRIC $3,688LANDSCAPING $4,770SNOW REMOVAL $2,226REPAIRS & MAINTENANCE $318TRASH REMOVAL $5,002

TOTAL CAM $16,004MANAGEMENT FEE (2% OF EGI) $793TOTAL EXPENSES $41,674

NET OPERATING INCOME $254,492*Reflects Mattress Firm 8/1/2018 Rent Increase

TENANT SUMMARYACTUAL PROPERTY



Investment Overv iew

• Two-Tenant Pad Site to Huntington Mall in Barboursville, West Virginia | 14 Miles East of Huntington | The Second Largest City in West Virginia

• Chipotle and Mattress Firm Signed 10-Year Leases Beginning in 2014 and 2013 Respectively | Each Lease Features a 10 Percent Increase in Year Six and in Each Option | Four, Five-Year Options

• Double-Net (NN) Leases | Limited Landlord Responsibilities | Tenants are Reimbursing for Common Area Maintenance, Real Estate Taxes, and Insurance

• Huntington Mall | Power Center Regional Mall with More Than 1.9 million Square Feet of Retail | The Largest Mall in West Virginia | Anchored by National Credits | More Than 960,000 Additional Square Feet of Retail within Five Miles of this Asset

• Tanyard Station | $86 Million Redevelopment Project Less Than Five Miles from Subject Asset | 200,000 Square Feet of Retail, Restaurants, a Bank, a Hotel, and a Gas Stations

• Ideally Located at the Signalized, Hard Corner of East Mall Road and Interstate-64 Exit Ramp | Interstate-64 Sees More Than 40,000 Vehicles Per Day

• Pad Site to 192,000-Square Foot Walmart Super Center | Major Co-Tenancies Feature Hobby Lobby and Ashley Furniture HomeStore

Marcus & Millichap is pleased to present this two-tenant pad site to the Huntington Mall in Barboursville, West Virginia, which is 14 miles east of Huntington, the second largest city in the state. Chipotle and Mattress Firm are operating under net leases reimbursing for common area maintenance, real estate taxes, and insurance. Chipotle and Mattress Firm signed 10-year leases with 10 percent rent increases every five years. Mattress Firm has more than 3,500 locations across the United States. Chipotle is a fast casual restaurant chain that operates 2,198 locations. Chipotle registered $3.9 billion in revenue in 2016 and came in at number 599 in the Fortune 1000 (2017).

The subject property benefits from its proximity to the Huntington Mall, which is a 1.9 million square foot super regional mall, with more than 150 retailers, making it the largest mall in the state. In the past year Dick’s Sporting Goods, Field & Stream, TJ Maxx, and HomeGoods were added to the mall, the two projects totaled $5 million. Additionally, within five miles of this asset there is more than 960,000 square feet of retail space.

Chipotle and Mattress Firm also directly benefit from being on the signalized, hard corner of East Mall Road and the Interstate-64 exit ramp; Interstate-64 sees more than 40,000 vehicles per day. This major interstate connects the St. Louis, Louisville, and Richmond metropolitan areas. Less than five miles away is the $86 million Tanyard Station redevelopment project. This 51.73-acre development site will feature 200,000 square feet of retail, restaurants, a bank, a hotel, and a gas station.

Other Retailers in the immediate trade area include: Lowe’s, Walmart Supercenter, Ashley HomeStore, Hobby Lobby, Chick-fil-A, Burger King, McDonald’s, Wendy’s, La-Z-Boy, Planet Fitness, Bob Evans, IHOP, Kohl’s, Sheetz, The Home Depot, Target, Starbucks, Kroger, and many more.

ACTUAL PROPERTY



Tenant Overv iew - CHIPOTLE

Chipotle Mexican Grill, Incorporated (Inc) operates Chipotle Mexican Grill restaurants, which serve a focused menu of burritos, tacos, burrito bowls and salads, made using fresh ingredients. As of December 31, 2016, the company operated 2,198 Chipotle restaurants throughout the United States, as well as 29 international Chipotle restaurants, and had 23 restaurants in operation in other non-Chipotle concepts. Chipotle focuses on finding the highest quality

ingredients to make great tasting food and building strong community culture in an operationally efficient and aesthetically pleasing manner. Chipotle has grown substantially over the past five years, and expects to open between 195 and 210

additional restaurants in 2017.

TENANT PROFILE

TENANT TRADE NAME Chipotle Mexican Grill, Inc.

OWNERSHIP Public

TENANT Chipotle

LEASE GUARANTOR Corporate

NUMBER OF LOCATIONS 2,250

HEADQUARTERED Denver, Colorado

WEB SITE https://www.chipotle.com/

SALES VOLUME $3.9 Billion (2016)

NET WORTH $1.4 Billion (2016)

STOCK SYMBOL CMG

BOARD New York Stock Exchange (NYSE)

RANK Number 599 in Fortune 1000 (June 2017)

ACTUAL PROPERTY



Tenant Overv iew - Mattress F i rm

With more than 3,600 company-operated and franchised stores across 49 states, Mattress Firm has the largest geographic footprint in the United States among

multi-brand mattress retailers. Founded in 1986, Houston-based Mattress Firm is the nation’s leading specialty bedding retailer with over $3.5 billion sales in 2015. In September 2016, the company was acquired by Steinhoff International for $3.8

billion, and Mattress Firm now operates as a subsidiary of Steinhoff.

The company, through its brands including Mattress Firm, Sleepy’s and Sleep Train, offers a broad selection of both traditional and specialty mattresses, bedding

accessories and other related products from leading manufacturers, including Serta, Simmons and Hampton & Rhodes.

TENANT PROFILE

TENANT TRADE NAME Mattress Firm

OWNERSHIP Private

TENANT Mattress Firm, Incorporated

LEASE GUARANTOR Mattress Firm, Incorporated

NUMBER OF LOCATIONS 3,500

HEADQUARTERED Houston, Texas

WEB SITE www.mattressfirm.com

ACTUAL PROPERTYThis 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0331912 5


Aer ia l Overv iew



10 MILE RADIUS

5 MILE RADIUS

3 MILE

SITE

35

35

60

23

23

23

52

60

52

52

52

60

60

64

64

6464

64

64

693378

243

152

152

773

757

752

966

152

193

214

622

817

243

141

650 775

775

217

21814193

7

7 2

2

2

3

3

5

10

10

75

10

34

34

2562

34

3462

62

3

3

Aid

Poca

Wayne

Nitro

Summit

Hamlin

Kenova

Milton

Russell

Ashland

Ironville

Meads

Ironton Eleanor

Glenwood

Lesage

Prichard

BurnaughCenterville

Ardel

Winslow

Melissa

Ona

Yates Crossing

Wilson Culloden

Red House

Bancroft

Lavalette Salt Rock

Hurricane

Branchland

Willow Wood

Rock Camp

Sunrise

Scottown

Coal Grove

Crown City

ChesapeakeHuntington

Alum Creek

Tornado

Teays ValleyScare

Cannonsburg

South Point

West Hamlin

Cross Lanes

Proctorville

Saint Albans

Barboursville

GriffithsvilleYawkey

Sod

Ohio

Kentucky

Ohi

oW

est

Vir

gini

a

KentuckyW

est Virginia

Area Overview & Demographics

3-Mile 5-Mile 10-Mile

P o p u l a t i o n2000 Population 12,452 28,402 92,406

2010 Population 13,915 30,040 93,107

2016 Population 13,889 30,496 93,767

2021 Population 13,865 30,521 93,654


H o u s e h o l d s


H o u s e h o l d ( H H ) I n c o m e s2000 Households 5,095 11,587 38,427

2010 Households 5,849 12,594 39,037

2016 Households 5,843 12,823 39,384

2021 Households 5,832 12,840 39,349

2016 Average HH Income $64,790 $66,678 $56,336 2016 Median HH Income $51,328 $52,682 $42,023 2016 Per Capita Income $27,257 $28,037 $23,662



Market Overview - Barboursvi l le, WV

Barboursville is a village in Cabell County, West Virginia, United States. It is located near the second largest city in the state,

Huntington, making it a strong and growing retail environment. Barboursville is a part of the Huntington Metropolitan Statistical

Area, the largest in West Virginia.

A historic and bustling city of commerce and heavy industry, Huntington has long-flourished due to its ideal location on the

Ohio River at the mouth of the Guyandotte River. It is home to the Port of Huntington Tri-state, the busiest inland port in the United States. Surrounded by extensive natural resources, the industrial

sector is based in coal, oil, chemicals and steel all of which support Huntington’s diversified economy. The city is a vital rail-to-river transfer point for the marine transportation industry. The railroad founded Huntington as one of the nation’s first planned communities to facilitate the railroad and other transportation

related industries at the railways western terminus.

The city is the home of Marshall University as well as the Huntington Museum of Art; the Big Sandy Superstore Arena; the United States Army Corps of Engineers; the Collis P. Huntington Historical Society and Railroad Museum; Camden Park, one of the world’s oldest amusement parks; the headquarters of the CSX Transportation-Huntington Division, the largest division in the CSX network; and the Port of Huntington Tri-State, the

largest river port in the United States.


Marcus & Mi l l ichap hereby advises al l prospect ive purchasers of Net Leased property as fol lows:

The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .

As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.

Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .

Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .

L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.

By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.


Broker of RecordRalph Nash

775 N. Je f fe rson St reetLewisburg, WV 24901

Te l : 304-645-3200Fax: 304-645-4499

L icense: S/B WV0008718

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