Miscellaneous
7.75% CAP NNN Single Tenant | +8 YRS Remaining
4311 N Harlem Ave, Norridge, IL 60706
Listing Price: $1,562,000
Investment Overview
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a long-term, single tenant net-leased Mattress Firm located on Harlem Avenue in Norridge, Illinois, just outside the city of Chicago. Located on one of the densest retail corridors in Chicagoland, this property benefits from exceptional visibility, full access and the varies benefits of a high barrier to entry trade area. Harlem Avenue is a high traffic thoroughfare with over 27,000 vehicles per day.
Mattress Firm just negotiated an early renewal of their lease, extending their base term to ~8.5 years, with a 5% rent increase coming in May of 2027. With Tempur Sealy’s acquisition of Mattress Firm set to close in early 2024, the outlook for Mattress Firm has likely never been brighter, setting the stage for the brand’s continued growth and stability
The demographics surrounding this property are especially noteworthy – with a population of 284,000 people living within a 3-mile radius, and a daytime population of 220,000 people. Average household incomes are just over $95,000, making this location ideal for Mattress Firm.
Mattress Firm has operated at this location since 2015 and has demonstrated their commitment to the site by extending their lease nearly 4 years before it would have expired. Priced at $1,729,000, and a 7% CAP rate, this is an opportunity to acquire a long-term net leased asset, at an above market yield and an accessible price point.
7.75% CAP NNN Single Tenant | +8 YRS Remaining
Investment Highlights
- Recently extended, long-term net leased Mattress Firm asset with built in rent increases and minimal landlord responsibilities
- Mattress Firm proactively extended their lease 4 years before the term would have expired in exchange for minor concessions
- Exceptional underlying real estate on Harlem Avenue – one of Chicago's preeminent retail corridors
- High yield opportunity – priced at a 7.75% CAP rate, the lease features a built-in rent increase in 2027 which pushes the yield up to 8.16%
- Unparalleled visibility and exposure to over 27,000 vehicles per day – the property features over-sized channel signage that is visible from every direction on Harlem Avenue
- Tempur Sealy is currently acquiring Mattress Firm, significantly improving the credit profile and outlook for Mattress Firm
Exclusively Listed By
Listing Price: $1,562,000
Investment Highlights
- Recently extended, long-term net leased Mattress Firm asset with built in rent increases and minimal landlord responsibilities
- Mattress Firm proactively extended their lease 4 years before the term would have expired in exchange for minor concessions
- Exceptional underlying real estate on Harlem Avenue – one of Chicago's preeminent retail corridors
- High yield opportunity – priced at a 7.75% CAP rate, the lease features a built-in rent increase in 2027 which pushes the yield up to 8.16%
- Unparalleled visibility and exposure to over 27,000 vehicles per day – the property features over-sized channel signage that is visible from every direction on Harlem Avenue
- Tempur Sealy is currently acquiring Mattress Firm, significantly improving the credit profile and outlook for Mattress Firm
Investment Overview
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a long-term, single tenant net-leased Mattress Firm located on Harlem Avenue in Norridge, Illinois, just outside the city of Chicago. Located on one of the densest retail corridors in Chicagoland, this property benefits from exceptional visibility, full access and the varies benefits of a high barrier to entry trade area. Harlem Avenue is a high traffic thoroughfare with over 27,000 vehicles per day. Mattress Firm just negotiated an early renewal of their lease, extending their base term to ~8.5 years, with a 5% rent increase coming in May of 2027. With Tempur Sealy’s acquisition of Mattress Firm set to close in early 2024, the outlook for Mattress Firm has likely never been brighter, setting the stage for the brand’s continued growth and stability The demographics surrounding this property are especially noteworthy – with a population of 284,000 people living within a 3-mile radius, and a daytime population of 220,000 people. Average household incomes are just over $95,000, making this location ideal for Mattress Firm. Mattress Firm has operated at this location since 2015 and has demonstrated their commitment to the site by extending their lease nearly 4 years before it would have expired. Priced at $1,729,000, and a 7% CAP rate, this is an opportunity to acquire a long-term net leased asset, at an above market yield and an accessible price point.
Exclusively Listed By
