22
™ RETAIL ADVISORS OFFERING MEMORANDUM CHIPOTLE & MATTRESS1 ONE 7002 N NAVARRO STREET, VICTORIA, TX 77904
™
R E T A I L A D V I S O R SOffering MeMOranduM
ChipOtle & Mattress1 One 7002 n navarrO street, viCtOria, tX 77904
Matthews retail advisors
COnfidentialitY & disClaiMer stateMent
this Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Chipotle & Mattress1 One located at 7002 n navarro street, victoria, tX 77904 (“property” ) . i t has been prepared by Matthews retai l advisors . this Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. the informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the property. i t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of sel ler or Matthews retai l advisors . the mater ia l is based in part upon informat ion suppl ied by the sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.
By acknowledging your receipt of th is Offer ing Memorandum for the property, you agree:
1 . the Offer ing Memorandum and i ts contents are conf ident ia l ;
2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and
3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the sel ler.
Owner and Matthews retai l advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the property unless and unt i l a wr i t ten agreement for the purchase and sale of the property has been ful ly executed and del ivered.
i f you wish not to pursue negot iat ions leading to the acquis i t ion of the property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is property including this Offer ing Memorandum.
a prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the property, or informat ion provided herein or in connect ion with the sale of the property shal l be l imited to those expressly provided in an executed purchase agreement and shal l be subject to the terms thereof. in no event shal l a prospect ive purchaser have any other c la ims against sel ler or Matthews retai l advisors or any of their af f i l iates or any of their respect ive of f icers , directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the property.
this Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the property s ince the date this Offer ing Memorandum.
eXClusivelY listed BY:
Table of ContentspriCing & finanCial analYsis ...............................................1investMent OvervieW ............................................................ 2eXeCutive suMMarY .................................................................3rent rOll........................................................................................4COMpanY OvervieW | Chipotle .............................................. 5COMpanY OvervieW | Mattress1 One ................................... 6phYsiCal desCriptiOn ............................................................. 9Birds eYe .......................................................................................10regiOnal Map .............................................................................. 11tenant Map ................................................................................. 12site plan ....................................................................................... 13deMOgraphiCs ........................................................................... 15CitY OvervieW ........................................................................... 16deMOgraphiCs repOrt ......................................................... 17
Mark CohenBroker of record license no. 447509
Wesley Connollyretail investment sales direCt +1.310.919.5809 MOBile +1.707.477.7185 [email protected] license no. 01962332
Matthews retail advisors
priCing & finanCial analYsis
priCing & finanCial analYsis
™
OFFERING MEMORANDUM | Chipotle & Mattress1 Onep. 2 Matthews retail advisors
investMent OvervieW
HIGH QUALITY, BRAND NEW CONSTRUCTION TWO TENANT NET LEASED INVESTMENT• attractive national tenants with publicly traded Chipotle and privately owned Mattress1 One• long term nn leases providing passive income and security with minimal ll responsibilities - 10 year leases• attractive 10% rental increases every 5 years
STRONG INFILL LOCATION WITH AFFLUENT DEMOGRAPHICS• excellent location - highest traffic area in victoria, tX with 38,000 vpd• visible from highway - 35’ pylon sign• strong demographics with average hh income close to $80,0000• home to university of houston - victoria with nearly 5,000 students• texas is an income tax free state
IDEAL 1031 EXCHANGE PROPERTY• net leased pad with minimal management responsibilities • incredibly strong tenant lineup with highly sought after national tenants• Chipotle, one of america’s premier fast casual restaurants, has a history of being very popular and successful• Mattress1 One is the #1 mattress store for florida and texas residents with over 150 stores
Matthews retail advisors p. 3Chipotle & Mattress1 One | OFFERING MEMORANDUM
PRICING ANALYSISeXeCutive suMMarY
ChipOtle & Mattress1 One7002 n navarrO street viCtOria, tX 77904
list price ........................................................................................................... $3,443,000Cap rate - Current ................................................................................................... 6.00%gross leasable area ..........................................................................................6,055 sflot size ........................................................................................0.83 acres (36,021 sf)Year Built ........................................................................................................................2015
annualized Operating dataMonthly rent annual rent rent/sf Cap rate
total Current $17,214.25 $206,571 $34.11 6.00%
lease summary
tenant trade name Chipotle Mexican grill Mattress1 One
guarantor Corporate sOs furniture Company, inc
square footage 2,252 sf 3,803 sf
initial annual rent $81,072 ($36/sf) $125,499 ($33/sf)
rental increases 10% every 5 Years 10% every 5 Years
lease type nn nn
Base lease term 10 Years 10 Years
rent Commencement date november 1, 2015 January 1, 2016
lease expiration date October 31, 2025 december 31, 2025
renewal Options three, 5-Year two, 5-Year
OFFERING MEMORANDUM | Chipotle & Mattress1 Onep. 4 Matthews retail advisors
PRICING ANALYSISrent rOll
tenant sf lease Commence lease end Monthly rent annual rent psf
Chipotle 2,252 sf 11/1/2015 10/31/2020 $6,756.00 $81,072.00 $36.00
11/1/2020 10/31/2025 $7,432.00 $89,179.00 $39.60
Option 1 $8,175.00 $98,097.00 $43.56
Option 2 $8,993.00 $107,916.00 $47.92
Option 3 $9,892.00 $118,703.00 $52.71
* Management fee, paid by tenant, equal to 10% of CaM
Mattress Pal Holding, LLC 3,803 sf 1/1/2016 12/31/2020 $10,458.00 $125,499.00 $33.00
d/b/a Matress1 One 1/1/2020 12/31/2025 $11,504.00 $138,049.00 $36.30
Option 1 $12,654.00 $151,854.00 $39.93
Option 2 $13,919.00 $167,028.00 $43.92
* Management fee, paid by tenant, equal to 4% of tenant's gross annual rent
Total 6,055 sf $17,214.00 $206,571.00
Matthews retail advisors p. 5Chipotle & Mattress1 One | OFFERING MEMORANDUM
PRICING ANALYSISCOMpanY OvervieW | Chipotle
Chipotle Mexican grill, inc. develops and operates fast-casual and fresh Mexican food restaurants. it’s restaurants primarily offer burritos, tacos, burrito bowls, and salads. as of april 21, 2015, it operated approximately 1,800 restaurants. the company was founded in 1993 and is based in denver, Colorado.
Chipotle uses high-quality raw ingredients, classic cooking methods and distinctive interior design features that are more frequently found in the world of fine dining. Chipotle competes in a category of dining called “fast-casual,” the fastest growing segment of the restaurant industry, where customers expect food quality that’s more in line with full-service restaurants, coupled with the speed and convenience of fast food quality.
revenue for 2014 was $4.11 billion, up 27.8% from the prior year. the growth in revenue was from a 16.8% increase in comparable restaurant sales and new resturant development.
source: Yahoo finance
property name Chipotle
property type net leased restaurant
parent Company trade name Chipotle Mexican grill, inc. (CMg)
Ownership public
revenue $4.1 Billion
net income $445 Million
stock symbol CMg
Board nYse
no. of locations ±1,800
no. of employees ±53,090
headquartered denver, CO
Web site www.chipotle.com
Year founded 1993
OFFERING MEMORANDUM | Chipotle & Mattress1 Onep. 6 Matthews retail advisors
COMpanY OvervieW | Mattress1 One
Mattress1 One is the #1 mattress store for florida and texas resi-dents shopping for a great price on top name brand mattresses like tempur-pedic, iComfort, sealy, serta, simmons, stearns and foster, and Kingsdown. Matthress1 carries a full line of mattress-es including traditional, gel foam and memory foam mattresses in all sizes from twin to king and everything in between!
Mattress1 One has more than 150 stores conveniently located throughout florida and texas to make mattress shopping con-venient, quick, and easy. What sets Mattress1 One apart from all the other mattress retailers is that customers walk out their doors with a gleam of confidence. they also have outstanding customer service ratings that prove they are the top mattress re-tailer that meets client’s budget and know how to deliver on the promises they make to ensure a quality good night sleep.
source: Mattress1 One
property name Mattress1 One
property type net leased retail store
parent Company trade name Mattress1 inc.
Ownership private
no. of locations 150+
headquartered Orlando, fl
Web site http://www.mattress1.com/
PROPERTY DESCRIPTION
™
prOpertY desCriptiOn
OFFERING MEMORANDUM | Chipotle & Mattress1 Onep. 8 Matthews retail advisors
Matthews retail advisors p. 9Chipotle & Mattress1 One | OFFERING MEMORANDUM
PROPERTY DESCRIPTIONphYsiCal desCriptiOn
THE OFFERING
property name ...........................................................Chipotle & Mattress1 One
property address ...........................................................7002 n navarro street
victoria, tX 77904
assessor’s parcel number ...................................................00130-000-79000
SITE DESCRIPTION
number of stories .............................................................................................One
Year Built .............................................................................................................2015
gross leasable area (gla) ....................................................................6,055 sf
lot size.............................................................................. 0.83 acres (36,021 sf)
type of Ownership ...............................................................................fee simple
parking .....................................................................................52 surface spaces
parking ratio...................................................................................8.58 : 1,000 sf
landscaping ........................................................................................professional
topography ................................................................................... generally level
COnstruCtiOn
foundation .......................................................................................Concrete slab
framing .............................................................................................................Wood
exterior ................................................................painted stucco/Metal framing
parking surface ............................................................................................asphalt
roof ........................................................................................................................flat
OFFERING MEMORANDUM | Chipotle & Mattress1 Onep. 10 Matthews retail advisors
Birds eYe
n nav
arro
st C
pd: 35,000
Matthews retail advisors p. 11Chipotle & Mattress1 One | OFFERING MEMORANDUM
PROPERTY DESCRIPTIONregiOnal Map
n nav
arro
st C
pd: 35,000
OFFERING MEMORANDUM | Chipotle & Mattress1 Onep. 12 Matthews retail advisors
PROPERTY DESCRIPTIONtenant Map
Matthews retail advisors p. 13Chipotle & Mattress1 One | OFFERING MEMORANDUM
PROPERTY DESCRIPTIONsite plan
OFFERING MEMORANDUM | Chipotle & Mattress1 Onep. 14 Matthews retail advisors
Building DESCRIPTION
the building, constructed in 2015, is a 6,055 square foot freestanding structure located on a 36,021 square foot site (0.83 acre) contain-ing 52 parking spaces for customers and employees.
the design is a continuous, monolithic slab on grade, with an exterior envelope consisting of masonry piers and perimeter wainscot walls utilizing harvard Brik, integrally colored split face block, cast stone, and a fully insulated exterior insulated finish system (eifs). the storefront is an anodized aluminum framing system with insulated and tempered low-e glass. predominant eifs bands are located above the storefront areas allowing for tenant signage and branding that can be seen along antelope drive and adjacent streets and properties.
the roofing system consists of a 60 mil., fully adhered, energy efficient white, thermoplastic polyolefin (tpO) membrane and “r Max” roof insulation over a composite steel, bar joist and metal deck arrangement. the new roof has a 15 year warranty.
the building incorporates all of the tenant’s strong and consisten trade dress programs with eye catching awning and building signage that easily identifies the property along the navarro street retail corridor.
deMOgraphiCs
™
deMOgraphiCs
OFFERING MEMORANDUM | Chipotle & Mattress1 Onep. 16 Matthews retail advisors
DEMOGRAPHIC ANALYSISCitY OvervieW
victoria is located 30 miles inland from the gulf of Mexico. the city is a regional hub for a seven-county area known as the “golden Crescent”, and serves a retail trade area of over 250,000 people. victoria is known as “the Crossroads” be-cause of its location within a two-hour drive of Corpus Chris-ti, houston, san antonio, and austin.
the property is easily accessible for customers located just south of texas highway 463 and adjacent to major arterial roads (antelope drive, hill field road). the investment is directly on navarro street, the major north/south thorough-fare in the victoria area. the property is located in the retail corridor of victoria and is surrounded by many traffic gener-ating retailers (starbucks, Chick-fil-a, heB plus, etc.).
the golden Crescentvictoria, tX
home of the Old victoria
Museum of the Coastal Bend
Bootfest in victoria
Matthews retail advisors p. 17Chipotle & Mattress1 One | OFFERING MEMORANDUM
DEMOGRAPHIC ANALYSISdeMOgraphiCs repOrt
population 1-Mile 3-Mile 5-Mile2020 projection 6,928 40,001 68,3472015 estimate 6,483 37,723 64,6252010 Census 6,045 35,519 61,0732000 Census 5,501 31,977 58,008growth 2000-2010 9.90% 11.07% 5.28%growth 2010-2015 7.24% 6.21% 5.82%growth 2015-2020 6.86% 6.04% 5.76%
households2020 projection 2,876 15,526 26,1382015 estimate 2,684 14,615 24,5802010 Census 2,491 13,745 23,0292000 Census 2,147 12,166 21,369growth 2000-2010 15.99% 12.97% 7.77%growth 2010-2015 7.75% 6.33% 6.73%growth 2015-2020 7.15% 6.24% 6.34%
income$0 - $15,000 8.34% 9.59% 12.32%$15,000 - $24,999 12.34% 11.61% 12.80%$25,000 - $34,999 8.58% 8.61% 9.54%$35,000 - $49,999 12.64% 12.69% 14.08%$50,000 - $74,999 19.55% 18.54% 18.46%$75,000 - $99,999 12.81% 13.49% 11.99%$100,000 - $124,999 8.52% 10.10% 8.72%$125,000 - $149,999 6.51% 6.42% 5.07%$150,000 - $199,999 5.68% 4.96% 3.90%$200,000 - $249,999 2.15% 1.99% 1.56%$250,000 - $499,999 2.18% 1.57% 1.21%$500,000+ 0.71% 0.44% 0.35%2015 est. average household income $78,760 $75,347 $67,3482015 est. Median household income $60,369 $60,118 $51,706
Matthews retail advisors | 841 apollo street, suite 150 | el segundo, Ca 90245 | www.Matthews.com
CHIPOTLE & MATTRESS1 ONE7002 n navarro streetvictoria, tX 77904Offering MeMOranduM
™
Mark CohenBroker of record license no. 447509
Wesley Connollyretail investment sales direCt +1.310.919.5809 MOBile +1.707.477.7185 [email protected] license no. 01962332
