Tenant: Sleep Train Mattress Center Premises: 4,160 SF Renewal Options: 2 x 5 Years
Lease Expiration: 6/30/28 Lease Type: NN Rental Increases: 10% Every 5 Years and at Options
Corporate Guarantee by Mattress Firm, a Subsidiary of Steinhoff International Holdings N.V. – Moody’s Rating of Baa3 Long-Term and aa3.za National Scale Issuer Rating
Tenant and Its Affiliate Have Been Successfully Operating at This Location Since 2005
High Barrier of Entry on Northern California Coast in Santa Cruz County
Highly Desirable Location on a Signalized Corner Across From The Capitola Mall
Excellent Demographics – Extremely Dense Population of Over 126,000 Residents with an Average Household Income of $93,000 Within a 5-Mile Radius
Mattress Firm Acquired Sleep Train in 2014 Making it the Largest Coast To Coast Mattress Retailer in The United States
In September 2016, Steinhoff International Holdings N.V. Completed it’s Acquisition of Mattress Firm and Mattress Firm/Sleep Train Are Now a Subsidiary of Steinhoff
Steinhoff Reported Revenue and Operating Profit for the 12 Months Ended June 20, 2016 of $14.5 Billion and $1.6 Billion Respectively
Founded in 1985 by Dale Carlsen, Sleep Train is the West Coast’s number one mattress retailer and number four nationwide. Shortly after graduating from California State University Sacramento, Carlsen opened the first Sleep Train store on Folsom Blvd. in Sacramento, California. His philosophy was simple: Treat the customer right and you will earn a customer for life. Eight months later, a second location was opened in Citrus Heights, California. Today, there over 270 convenient Sleep Train locations, including 10 (and counting) in Hawaii. Sleep Train is known for its dedication to the community with the Sleep Train Foster Kids program, as well as its commitment to providing superior service, top brand name selection and a low price guarantee.
Mattress Firm acquired Sleep Train in 2014. In September 2016, Steinhoff International Holdings N.V. completed it's acquisition of Mattress Firm and Mattress Firm is now a subsidiary of Steinhoff.
As of August 2016, Steinhoff held retailing activities in 30 countries, counting 6,500 retail outlets belonging to 40 different brands, and employing about 90,000 employees. 60% of the company's revenue, and 2/3 of its benefits, are made in Europe. Steinhoff expanded into the United States market on 7 August 2016. Steinhoff's South African brands include HiFi Corp, Pennypinchers, Timbercity, Pep, Ackermans, Shoe City, Incredible Connection, and Unitrans. In the UK, Steinhoff owns the high street brands Cargo, Harveys Furniture, Bensons for Beds, Sleepmaster and Pep&Co.
The acquisition of MFRM will create one of the world’s largest multi-brand mattress retail distribution networks and facilitate Steinhoff’s entry into the US market. MFRM provides an attractive value proposition:
Compelling industry dynamics, with long term stability and consistent growth
A best-in-class specialty retailer (25% market share1) with a national retail and distribution footprint and leading market position in the US
A proven track record of driving profitability, and a strong free cash flow to support growth
Opportunity for growth through store expansion, market consolidation and vertical integration
A highly experienced and entrepreneurial management team
Broader global geographical spread for the combined group, and greater revenue and profit exposure to US dollars creating a natural hedge to the group’s sourcing costs