Mattress Firm | Columbus, OHOffering Memorandum

ANDREW FALLONEXECUTIVE MANAGING DIRECTOR

(703) 787-4733 afallon@calkain.com

PATRICK NUTT MANAGING PARTNER

(954) 302-7365 patrick.nutt@calkain.com

Actual Site

BROKER OF RECORDLLOYD BERNSTIENLMB Associates, Inc.lmba@fuse.netLic# BRKP.0000314357

Exclusive ListingOffering Memorandum

Online Live Bidding July 23-25, 2018STARTING BID $500,000

Click HERE to Register at Ten-X.com to Bid

1

C A L K A I N .C O MC A L K A I N .C O M

Mattress Firm | Columbus, OH

Mattress Firm | Columbus, OHOffering Memorandum

1141 Polaris Pkwy | Columbus, OH 43240

Live Auction Starting Bid: $500,000

Net Operating Income (NOI) $185,845

Rent/Month $15,487.08

Rent/SF $27.50

Rentable Square Feet 6,758+/- SF

Land Area 1.02+/- Acres

Tenant Name Mattress Firm

Credit Rating S&P: B+

Guarantor Corporate

Ownership Type Fee Simple

Lease Type NN

Landlord Responsibilitites Roof & Structure

Store Opened December 2010

Lease Term Remaining 7 Years

Rent Commencement December 1, 2015

Lease Expiration November 30, 2025

Increases 5% on 12/1/2020 & 10% Every 5 Years in Options

Options Two (2), Five (5) Year

Rent Schedule

Term Increases Annual Rent Monthly Rent12/1/2015–11/30/2020 - $185,845.00 $15,487.08

12/1/2020–11/30/2025 5% $195,103.46 $16,258.62

12/1/2025–11/30/2030 (Option 1)

10% $214,566.50 $17,880.54

12/1/2030–11/30/2035 (Option 2)

10% $235,989.36 $19,665.78

Investment Highlights • Structured rent increases 5% bump December 1, 2020 and 10% every

5 years in options

• Located on a hard corner signalized intersection with combined traffic counts of 54,000+ VPD

• Columbus, OH MSA, attractive demos, major university; population 13,000+ within 1 mile

• Surrounded by other national retailers including Chick-fil-A, Chase & Chipotle

Online Live Bidding July 23-25, 2018 Click HERE to Register at Ten-X.com to Bid

2

Financial Summary

Mattress Firm | Columbus, OHOffering Memorandum

Site Photos

3

Mattress Firm | Columbus, OHOffering Memorandum

Site Photos

Subject Site

4

Distance To:Dayton, OH 85 miles

Canton, OH 115 miles

Cincinnati, OH 122 miles

Indianapolis, IN 190 miles

Indianapolis, IN Dayton, OH

Cincinnati, OH

Columbus, OH

Canton, OH

Cleveland, OH

Mattress Firm | Columbus, OHOffering Memorandum

Location Overview

70

Subject Site

75

71

5

1141 Polaris Pkwy | Columbus, OH

Polaris Pkwy 43,388 VPD

Mattress Firm | Columbus, OHOffering Memorandum

Subject Site

71

I-71 121,410 VPD

Polaris Town Center

I-71 121,410 VPD

6

1141 Polaris Pkwy | Columbus, OH

Mattress Firm | Columbus, OHOffering Memorandum

Subject Site

Sancus

Blvd

17,979

VPD

Polaris Pkwy 43,388 VPD

7

Mattress Firm | Columbus, OHOffering Memorandum

About Mattress FirmWith more than 3,594 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 in pro forma 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, Tempur-Pedic, Sealy, Stearns & Foster, King Coil and Hampton & Rhodes.

Tenant Snapshot# of Locations

3,594+

Stock SymbolNasdaq: MFRM

Credit RatingS&P: B+

8

Tenant Overview

Mattress Firm | Columbus, OHOffering Memorandum

Radius 1 Mile 3 Miles 5 MilesPopulation2017 Population 13,289 68,786 209,639

2022 Population 15,350 75,206 225,539

2010-2017 Annual Rate 3.76% 2.09% 1.56%

2017-2022 Annual Rate 2.93% 1.80% 1.47%

2017 Male Population 49.1% 49.0% 48.6%

2017 Female Population 50.9% 51.0% 51.4%

2017 Median Age 33.0 34.2 36.9

Households2017 Total Households 5,653 27,711 81,591

2022 Total Households 6,523 30,269 87,557

2010-2017 Annual Rate 3.69% 2.03% 1.48%

2017-2022 Annual Rate 2.90% 1.78% 1.42%

2017 Average Household Size 2.35 2.45 2.54

Median Household Income2017 Median Household Income $73,715 $76,361 $78,792

2022 Median Household Income $81,460 $85,299 $86,968

2017-2022 Annual Rate 2.02% 2.24% 1.99%

Average Household Income2017 Average Household Income $87,382 $98,260 $102,958

2022 Average Household Income $99,940 $112,242 $116,113

2017-2022 Annual Rate 2.72% 2.70% 2.43%

Per Capita Income2017 Per Capita Income $37,141 $39,537 $40,377

2022 Per Capita Income $42,432 $45,083 $45,385

2017-2022 Annual Rate 2.70% 2.66% 2.37%

9

Demographics

Mattress Firm | Columbus, OHOffering Memorandum

Demographics | 5 Mile Radius

10

Mattress Firm | Columbus, OHOffering Memorandum

Columbus, OHColumbus is the state capital and the most populous city in Ohio. It is the 14th-most populous city in the United States, with a population of 860,090 as of 2016 estimates, making Columbus one of the fastest growing large cities in the United States. This makes Columbus the 3rd-most populous state capital in the United States after Phoenix, Arizona and Austin, Texas, and the second-most populous city in the Midwestern United States, after Chicago. It is the core city of the Columbus, Ohio, Metropolitan Statistical Area, which encompasses ten counties.With a population of 2,078,725, it is Ohio’s second-largest metropolitan area.

Columbus is the county seat of Franklin County. The municipality has also expanded and annexed portions of adjoining Delaware County, Pickaway County and Fairfield County. Named for explorer Christopher Columbus, the city was founded in 1812 at the confluence of the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816.

The city has a diverse economy based on education, government, insurance, banking, defense, aviation, food, clothes, logistics, steel, energy, medical research, health care, hospitality, retail, and technology. Columbus is home to the Battelle Memorial Institute, the world’s largest private research and development foundation; Chemical Abstracts Service, the world’s largest clearinghouse of chemical information; NetJets, the world’s largest fractional ownership jet aircraft fleet; and The Ohio State University, one of the largest universities in the United States. As of 2013, the city has the headquarters of five corporations in the U.S. Fortune 500: Nationwide Mutual Insurance Company, American Electric Power, L Brands, Big Lots, and Cardinal Health.The food service corporations Wendy’s, Donatos Pizza, Bob Evans, Max & Erma’s and White Castle and the nationally known companies Red Roof Inn, Rogue Fitness, and Safelite are also based in the metropolitan area.

In 2016, Money Magazine ranked Columbus as one of “The 6 Best Big Cities”, calling it the best in the Midwest, citing a highly educated workforce and excellent wage growth. In 2012, Columbus was ranked in BusinessWeek’s 50 best cities in America. In 2013, Forbes gave Columbus an “A” rating as one of the top cities for business in the U.S., and later that year included the city on its list of Best Places for Business and Careers.[29] Columbus was also ranked as the No. 1 up-and-coming tech city in the nation by Forbes in 2008, and the city was ranked a top-ten city by Relocate America in 2010. In 2007, fDi Magazine ranked the city no. 3 in the U.S. for cities of the future, and the Columbus Zoo and Aquarium was rated no. 1 in 2009 by USA Travel Guide.

11

Market Overview

Mattress Firm | Columbus, OHOffering Memorandum

ANDREW FALLONEXECUTIVE MANAGING DIRECTOR

(703) 787-4733 afallon@calkain.com

PATRICK NUTT MANAGING PARTNER

(954) 302-7365 patrick.nutt@calkain.com

Who Are We? Calkain Companies LLC is a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.

We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.

Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.

Client Testimonial

“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.

- Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)

$12 Billion in Closed Transactions

$350 Million

in Active Listings

12

C A L K A I N .C O MC A L K A I N .C O M

About Calkain

DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula-tions, the physical condition of the improvements 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(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.

Corporate Headquarters Washington, DC12930 Worldgate Drive | Suite 150 Herndon, VA 20170 T: (703) 787-4714 • F: (703) 787-4783

Fort Lauderdale200 SW 1st Avenue | Suite 880 Fort Lauderdale, FL 33301 T: (813) 282-6000

Atlanta111 Village Parkway, Building 2 | Suite 202 Marietta, GA 30067 T: (404) 900-5629

Boston101 Federal Street | Suite 1900 Boston, MA 02110 T: (617) 261-8584

Philadelphia3477 Corporate Parkway | Suite 100 Center Valley, PA 18034 T: (610) 410-5410

CALKAIN.COM

Contact Us