Three-Tenant Sleep Number Anchored Strip Center
Mobile, AL
The Opportunity
Summary
- Price: $2,824,000
- Cap Rate: 7.00%
- Cap Rate as of 8/1/2026: 7.88%
- NOI: $197,647
- Year Built: 2017
- Building Size: 6,973 SF
- Parcel Size: 0.73 Acres
- Avg. Lease Term Remaining: 6.9 Years
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a three-tenant strip center leased to Sleep Number and Nothing Bundt Cakes, (the “Property”) in Mobile, Alabama. The 7,000+ SF building is situated on a 0.73-acre outparcel that features thirty-two parking spaces. The building is divided into three units, and contains a 1,955 SF vacant unit, enabling investors to lease up the space and capitalize on additional rental income. Sleep Number, the anchor tenant, relocated from its original in-line space within the mall and is now operating on a corporate lease with over seven years of term remaining. Nothing Bundt Cakes has 6.5 years of term remaining and their lease is guaranteed. Nothing Bundt Cakes’ Lease calls for a ten percent (10%) rental increase on 10/1/2025. Sleep Number’s Lease calls for a ten percent (10%) rental increase on 8/1/2026. With an average remaining lease term of just under 7 years, upcoming rental increases in 2025 and 2026 and a roof warranty in place until 2037, investors can benefit from this value-add opportunity with minimal downside risk.
The three-tenant strip center has excellent visibility and accessibility, as it is ideally located along Airport Boulevard (CR 56), which is home to over 28,000 VPD. It is just minutes away from Interstate 65 which boasts more than 102,000 VPD. The Property is nestled adjacent to a strong lineup of properties including McDonald’s and Starbucks – two, investment-grade tenants that capture a large consumer base and are leaders within the quick-service restaurant sector. Mobile, Alabama is a part of the Mobile MSA, which has a population of more than 428,000. The metro is almost completely encompassed by Mobile County, which is the second most populous county in the state. The city is positioned at the mouth of the Mobile River and is adjacent to the Gulf of Mexico. Mobile is the only city in Alabama to have a seaport. The Port of Mobile is the 9th largest port by volume in the United States.
Investment Highlights:
Tenant
Sleep Number
Ownership: PUBLIC (NASDAQ: SNBR)
Credit Rating: N/R
Headquarters: MINNEAPOLIS, MN
# of Locations: 672 (As of 12/30/2023)
Sleep Number is a wellness technology company based out of Minneapolis, Minnesota. They combines sleep science and data to enhance their innovation and improve the lives of their customers by individualizing sleep experiences. To date, Sleep Number has improved the sleep of over 15 million customers. Sleep Number’s 360 smart beds provide each sleeper with adjustable, personalized comfort for proven quality sleep. The beds benefit from the company’s proprietary SleepIQ technology – learning from nearly 24 billion hours of highly accurate sleep data – to provide effortless comfort and individualized sleep health insights, including a daily SleepIQ score. The purpose driven company is comprised of more than 4,100 passionate team members who are dedicated to improve society’s wellbeing through higher quality sleep.
Nothing Bundt Cakes
Ownership: PRIVATE
Credit Rating: N/R
Headquarters: LAS VEGAS, NV
#of Locations: 500+
In 1997, Dena Tripp and Debbie Shwetz joined forces to bake cakes for their friends and family in Las Vegas, NV. The cakes were so well received, that their thousands of customers began to ask them to entertain more and more. The duo quickly realized that there was a need for delicious cakes, readily available, that didn’t compromise on their ingredients of real eggs, butter and cream cheese. Flash forward twenty-seven years and the Nothing Bundt Cakes has grown nationwide. Now the nation’s largest specialty cake company, Nothing Bundt Cakes currently operates over 500 locations in 40+ states and Canada. Each bakery still has the warmth and nostalgia of its home-kitchen roots, along with a modern approach for the world today. This Nothing Bundt Cakes location contains personal guaranty from the franchisee.
