Mattress Firm at Oracle & Ina Opens / Sells in Net Lease

When NLA Oro Valley, LLC, an affiliate of Nashville-based Net Lease Alliance (Patrick Cox, CEO), purchased the former Coxco Fuel station at 7201 North Oracle Road in Tucson, located at the northwest corner of Ina and Oracle for land value, it was purchased for construction of a Bedmart Store.

See Real Estate Daily News March 12, 2014 for full story.

About two months later, Bedmart was acquired by Mattress Firm and this weekend the doors opened on the new Mattress Firm store at 7201 N Oracle Road in Tucson. The 3,435-square-foot mattress store sold for $2.37 million ($690 PSF) to investors from Eureka, California in a net investment sale.

Net Lease Alliance provided 100% of the capital for the project and the loan-to-equity balance on the project.

In June last year the acquisition was completed, adding approximately 75 specialty retail stores to the Mattress Firm company-operated stores base primarily in Denver, Colorado, Phoenix, Arizona and Tucson, Arizona, for an aggregate purchase price of approximately $35 million. The purchase price was funded by cash reserves and revolver borrowings, as well as a $3.5 million seller note that is payable in quarterly installments over two years.

Mattress Firm then rebranded the Mattress King and BedMart stores into Mattress Firm stores, including this one before it was build.

Chad Tiedeman with Phoenix Commercial Advisors handled the transaction for both buyer and seller.

To learn more Tiedeman can be reached at 602.288.3472. For full details login for RED Comp #2966.

[mepr-show rules=”58038″]Sale date: 5/29/2015, Down payment: $727,000 with new conventional financing. Property closed in 65 days, at a 6.25% cap rate with a 12 year primary term and 10% rate increases with 10 year renewals. See RED Comp for full details.[/mepr-show]