TROPHY SILICON VALLEY NET-LEASED OPPORTUNITY 2490-2496 W El Camino Real

Marcus & Millichap is pleased to present the exclusive opportunity to purchase the fee simple interest in a single tenant net leased Mattress Firm located on one of Silicon Valley’s preeminent retail intersections. Positioned on the hard corner of West El Camino Real and Showers Drive in Mountain View, this property benefits from exceptional visibility, full access from Showers Drive, and all the inherent underlying strength of Silicon Valley real estate. West El Camino Real is the main traffic thoroughfare of Silicon Valley, and the property benefits from visibility to over 50,000 vehicles per day. Located across the street from Whole Foods Market, the asset is in the center of a prime retail node that also features Trader Joe’s, Walmart, and Target within a tenth of a mile. Google’s headquarters is located 2½ miles northeast, and Stanford University is a little over 5 miles away. The long-term potential for appreciation of the land alone makes it difficult to even compare this opportunity to other net leased properties.
Mattress Firm has over 6 years remaining on an original 15-year lease, with a 10% rent increase coming in approximately 18 months that will push the in-place cap rate by 50 basis points. There are two 5-year options remaining, each with 10% rent increases at the end of the firm term. Mattress Firm has operated at this location since 2017 and benefited from a complete remodel completed that prior year.
With Tempur Sealy’s acquisition of Mattress Firm making its final run through the Federal Trade Commission, the credit outlook for Mattress Firm is more positive than ever. This sets the stage for the brand’s renewed growth and stability. The demographics surrounding this property are representative of a trophy piece of real estate in Silicon Valley – with a population of 142,000 people living within a 3-mile radius, and a daytime population of just under 240,000 people. Average household incomes are roughly $235,000 annually, making this location a hub of affluent customers.