NEW CONSTRUCTION NET LEASE WITH MATTRESS FIRM, INC.

[ www.CapitalPacific.com ]4469 East Eisenhower Blvd., Loveland, CO 80538

[ REPRESENTATIVE PHOTO ]

Loveland, CO

MAttress FirmLoveland, CO

ADDRESS:4469 East Eisenhower Blvd., Loveland, CO 80538

Investment Highlights

The offering provides the opportunity to acquire a new build-to-suit Mattress Firm with an 11-year triple net lease with scheduled

rent growth. Mattress Firm has frontage on Eisenhower Blvd., a major east/west arterial in Loveland, and is exposed to 51,000 vehicles per

day. The property is situated immediately west of the Marketplace at Centerra, a 500,000 square-foot shopping center anchored by Target and Sportsman’s Warehouse.

Mattress Firm is located in a growing, affluent area with a surrounding residential base earning an average annual income in excess of $107,000. The Property is within proximity to several new residential and commercial developments, which will increase population and draw to the trade area.

Mattress Firm Holding Corp. currently operates 3,500 stores nationwide and recently received credit upgrades in their S&P and Moody’s ratings to B+ and B1, respectively.

PRICE: $2,820,000CAP: 6.00%

LEASABLE SF . . . . . . . . . . . . . . . . . . ±4,543 SF

PRICE PER SF . . . . . . . . . . . . . . . . . . $621

LAND AREA . . . . . . . . . . . . . . . . . . . . ±21,760 SF

LEASE TYPE. . . . . . . . . . . . . . . . . . . . NNN

YEAR BUILT . . . . . . . . . . . . . . . . . . . . 2016

DELIVERY DATE . . . . . . . . . . . . . . . . September 20, 2016

RENT COMMENCEMENT . . . . . . . . December 15, 2016

PARKING . . . . . . . . . . . . . . . . . . . . . . ±24 Spaces or 5.3/1,000 SF

MATTRESS FIRM IS A CORPORATE-BACKED BUILD-TO-SUIT ASSET ADJACENT TO A TARGET-ANCHORED POWER CENTER LOCATED IN LOVELAND, CO.

[ REPRESENTATIVE PHOTO ] MATTRESS FIRM | 2

Core CharacteristicsNATIONAL CREDIT TENANTMattress Firm Holding Corp. (NASDAQ:MFRM) reported $3.5 billion in pro forma sales in 2015. Standard and Poor’s issued a “B+” credit rating with a stable outlook for Mattress Firm Holding Corp. which was upgraded due to improved operating performance and debt reduction. Moody’s also upgraded their rating to B1. Steinhoff International, a $22 Billion furniture conglomerate, has recently announced plans to purchase Mattress Firm, Inc. for $3.2 Billion in a deal expected to close in the third quarter of 2016. Steinhoff has an investment-grade credit rating of Baa3, which would further increase Mattress Firm’s strength and credit.

NEW BUILD-TO-SUIT WITH LONG TERM LEASEMattress Firm has signed an 11-year lease with built-in rent growth of 10% at the commencement of Year 7. The Premises is currently under construction and is being built-to-suit for Mattress Firm with an expected rent commencement and grand opening date of December 15, 2016. Mattress Firm is committed to the trade area, as this is a relocation of an existing store two miles west off Eisenhower Blvd.

ADJACENT TO MAJOR POWER CENTERThe Property is situated immediately west of Marketplace at Centerra, a 500,000 square-foot power center anchored by Target, Sportsman’s Warehouse, and junior anchored by PetSmart, JoAnn Fabric, Old Navy, and Ross Dress For Less (among others). Mattress Firm benefits from a daily draw to the trade area through co-tenancy with neighboring retailers.

MINIMAL LANDLORD RESPONSIBILITIESThe Premises is net-leased to Mattress Firm, limiting Landlord responsibilities to the replacement of the roof, monument sign, and building structure. The Subject is a brand new construction with a 20-year roof warranty which will minimize such costs. The Tenant is responsible for all other operating expenses associated with the Premises.

LARGE, AFFLUENT HIGH GROWTH TRADE AREAThe Property benefits from an affluent demographic base with area household incomes averaging in excess of $107,000 within a one-mile radius. The Property benefits from a large surrounding residential base of 500,000 residents living within a 30-minute drive-time radius of the Subject. The Fort-Collins-Loveland population has increased by an astounding 83% in the last 15 years.

[ REPRESENTATIVE PHOTO ] MATTRESS FIRM | 3

With more than 3,500 company-operated and

franchised stores across 48 states, Mattress Firm Holding Corp. (MFRM) has the largest geographic footprint in the United States among multi-brand mattress retailers. Founded in 1986, Houston-based MFRM is the nation's leading specialty bedding retailer with over $3.5 billion in sales over the past 12 months. MFRM, through its family of brands, including Mattress Firm and Sleep Train, offers a broad selection of both traditional and specialty mattresses, bedding accessories and other related

products from leading manufacturers, including Sealy, Tempur-Pedic, Serta, Simmons, Stearns & Foster, and Hampton & Rhodes.

Mattress Firm acquired Sleepy's in February 2016 in a $780 Million purchase. Sleepy's is a privately-owned fourth-generation company with over 1,050 retail locations in 17 states and the District of Columbia, spanning from Maine to South Carolina and available nationally through www.sleepys.com. Throughout Sleepy's over 58-year history, the company has remained committed to providing sleep comfort and expertise with its highly trained Mattress

Professionals and an extensive selection of top brands, including Tempur-Pedic, Sealy Posturepedic, Simmons Beautyrest, Serta, King Coil, Stearns & Foster and more.

Together, this will create the nation's first border-to-border, coast-to-coast specialty bedding retailer. The company will operate approximately 3,500 stores and have combined pro forma sales of over $3.5 Billion over the last 12 months.

ABOUT

B+STANDARD & POOR'S

CREDIT RATING UPGRADED

SEPTEMBER 20153,500+

MATTRESS FIRM INC. & FRANCHISED STORES ACROSS 48 STATES

PROFORMA SALES OVER LAST 12 MONTHS

$3.5BB1MOODY'S INVESTORS

SERVICE RATING UPGRADED IN 2015

About Mattress Firm

320NEW OR ACQUIRED

STORES IN PREVIOUS YEAR

MATTRESS FIRM | 4

[ REPRESENTATIVE PHOTO ]

South African retailer Steinhoff International will buy Mattress Firm, the largest specialty bedding retailer in the United States, for $3.8 billion which includes debt, both companies said on Sunday.

Steinhoff said it will pay $64 per share, a premium of about 115 percent to Mattress Firm's Friday close in a deal that will create the world's largest mattress retail distribution company. The boards of both firms have approved the deal, the companies said in a statement.

Founded in 1986, Mattress Firm has approximately 3,500 stores across 48 states with 80 distribution centers. In February, the company solidified its position as a leader in the U.S. mattress retail market when it completed its $780 million acquisition of HMK Mattress, the holding company of Sleepy's. Sleepy's was the second-largest specialty mattress retailer in the U.S. with over 1,050 stores in 17 states in the Northeast, New England, the Mid-Atlantic and Illinois.

The deal with Steinhoff is subject to completion of a successful tender offer for Mattress Firm's shares. The transaction is expected to close in the third quarter of 2016, the companies said.

Steinhoff is a German-listed $22 billion furniture conglomerate led by South African retail mogul Christo Wiese who is also Steinhoff's chairman and largest shareholder.

Steinhoff, which owns brands in Africa, Australia, the U.K. and across Europe, last month agreed to pay nearly $800 million for British-based discount chain Poundland after two previous attempts to expand in Europe fell through this year.

The Mattress Firm Holding deal would give Steinhoff access to the growing U.S. market, and help diversify its operations and guard against possible repercussions following Britain's June vote to leave the European Union.

Markus Jooste, chief executive officer of Steinhoff, said the deal "will allow Steinhoff to not only enter the U.S. market with an industry leading partner and a national supply chain, but it will also expand Steinhoff's global market reach in the core product category of mattresses."

In The News

STEINHOFF TO BUY MATTRESS FIRM FOR $3.8 BILLION INCLUDING DEBT

August 8, 2016 - cnbc.com

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LINK TO ARTICLE

MATTRESS FIRM | 5

Retail

The Promenade shops at centerra

ADDITIONAL RETAILGame StopGolden CorralGoodwillHome DepotJax Loveland Kohl’s Lowe’s Panda ExpressSam’s Club Walmart Supercenter

CENTERRABed Bath & BeyondBuffalo Wild WingsChick-fil-AChipotleIHOPJimmy John’s JoAnn Fabric & Craft KFC Marshalls McDonald’s

Old NavyPanera BreadPayless PetSmart RossSally Beauty SupplySportsmans’s Warehouse StaplesStarbucks Target

OUTLETS AT LOVELAND

Mattress Firm 34

25

69,000 DAILY

51,000 DAILY

OUTLETS AT LOVELANDBassCoach Famous Footwear J. Crew Nike Tommy HilfigerUnder ArmourWilsons Leather

THE PROMENADE SHOPS AT CENTERRABarnes & Noble Best Buy Dick’s Sporting Goods Gap Kids Macy’sMetropolitan Theaters P.F. Chang’s Red Robin

FULL LIST OF OUTLETS AT LOVELAND

FULL LIST OF PROMENADE SHOPS AT CENTERRA

New Developments

MILLENNIUM MULTI-PHASE SUBDIVISION

SIZE: 23.87 Acres

STATUS: Under Review

NOTES: 200+ Total Homes

LAKES AT CENTERRA

SIZE: 233 Lots

STATUS: Underway

NOTES: 791 Homes Planned

FLATS AT CENTERRA

SIZE: 6.26 Acres

STATUS: Approved

NOTES: 120-unit multifamily

SEVEN LAKES 11TH SUBDIVISION

SIZE: 5 Acres

STATUS: Under Review

NOTES: 42 Homes Planned

TANIMA PEAK APARTMENTS

SIZE: 22.43 Acres

STATUS: Proposal Phase with the City

NOTES: 368-unit apartments in 40 buildings.

BOYD LAKE PLACE

SIZE: 10 Acres

STATUS: Under Review

NOTES: Future medium-density housing development.

SOUTH CATALYST PROJECT

SIZE: 3 City Blocks

STATUS: Underway – Broke ground June 2016

NOTES: $60M mixed-use project to include office, movie theatre, and residential.

POPULATION GROWTHThe Loveland population has grown significantly in the last 10+ years experiencing a 66% increase in population between years 2000-2010, and then a 20% increase in population between years 2010-2016. Between 2013-2014 the Fort Collins-Loveland metro area added 7,628 residents, a year-over-year change of 2.4% which makes Fort Collins-Loveland the 12th fastest-growing metro in the nation.

BANNER HEALTH SKYLINE

SIZE: 32,000 SF

STATUS: Proposal Phase

NOTES: $9.4M 31K foot expansion.

COMMERCIAL GROWTHRESIDENTIAL GROWTH

MATTRESS FIRM

Site Plan

SITE PLAN KEY

PARCEL OUTLINE:

LAND AREA: ±21,760 SF

BUILDING AREA: ±4,543 SF

PARKING: 24 STALLS*

MATTRESS FIRM:

MONUMENT SIGN:

INGRESS/EGRESS:

SPOONER AVE

51,000 DAILY

Site Plan Not To Scale

CUPI

D R

D

E EISENHOWER BLVD

*PARCEL NOTE

Mattress Firm site has the right to use 7 parking stalls on the adjacent land parcel.

MATTRESS FIRM | 8

Income & Expense

PRICE $2,820,000

Capitalization Rate: 6.00%

Price Per Foot: 4,543 Square Feet $621

NET OPERATING INCOME SUMMARYSCHEDULED INCOME Per SFScheduled Rent: 12/15/2016 $37.25 $169,227Equals: Effective Gross Income $37.25 $169,227

Less: OPERATING EXPENSES Per SFCAMS NNNProperty Taxes NNNInsurance NNNTotal Operating Expenses NNN -

Equals: NET OPERATING INCOME $169,227

7/25/2016 [ <www.CapitalPacific.com> ]

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Financial Summary

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MATTRESS FIRM | 9

Rent Roll

TENANT INFO TERM

Tenant Name Size Date Monthly RentPercent Increase

Annual Rent PSF Cap Rate

Mattress Firm 4,543 12/15/2016 $14,102 $169,227 $37.25 6.00%1/1/2023 $15,514 10.0% $186,172 $40.98 6.60%

Occupancy Date : 12/15/2016

Lease Expiration : 12/31/2027

Option 1 1/1/2028 $17,063 10.0% $204,753 $45.07 7.26%

Option 2 1/1/2033 $18,770 10.0% $225,242 $49.58 7.99%Lease Notes

Current Totals: 4,543 $14,102 $169,227 $37.25 6.00%

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

RENT SUMMARY

Comments: Lease has Corporate guarantee from Mattress Holding Corp. Tenant is responsible for all operating expenses of the Premises, excluding the replacement of the roof, monument sign, and building structure, which is the responsibility of the Landlord. Analysis assumes an estimated rent commencement date of 12/15/2016.

7/25/2016 [ <www.CapitalPacific.com> ]

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Rent Roll

[ CONCEPTUAL MOD PIZZA SIGNAGE ]

MATTRESS FIRM | 10

Lease Abstract

BASE RENT

Increase of 10% after 6th lease year

12/15/2016 - 12/31/2022: $14,102/Month $169,227/Annually1/1/2023 - 12/31/2027: $15,514/Month $186,172/Annually

OPTION PERIODS

#1 - 1/1/2028 - 12/31/2032: $17,063/Month $204,753/Annually#2 - 1/1/2033 - 12/31/2037: $18,770/Month $225,242/Annually

LEASE PROVISIONS

ASSIGNMENT/SUBLETTINGTenant may not assign or sublease any interest in the Premises without prior written consent of the Landlord.

PARKINGTenant has the right to use five parking spaces directly in front of the Premises for exclusive use of the Tenant.

PREMISES/TERM

SQUARE FEET ±4,543 SFTENANT Mattress Firm, Inc.LEASE TYPE NNN Corporate LeaseRENT COMMENCEMENT 12/15/2016 (Estimated)LEASE TERM 11 YearsOPTIONS Two 5 year Options; 270 Days’ NoticeGUARANTOR Mattress Holding Corp. TAXES

Tenant is responsible for full reimbursement of property taxes to Landlord.

INSURANCETenant is responsible for maintaining “all risk,” commercial general liability, combined single limit coverage, and workers’ compensation insurance policies. Tenant is responsible for reimbursing 100% of Landlord’s Special Perils policy.

UTILITIESTenant is responsible for payment of all utilities.

TENANT’S OBLIGATIONSTenant is responsible for the routine maintenance and repair of the roof, monument sign, and maintenance and repair for all non-structural elements of the building, including the HVAC, building exterior, and landscaping.

LANDLORD’S OBLIGATIONSLandlord is responsible for the replacement of the roof, monument sign, building structure, and underground utilities up to the building.

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MATTRESS FIRM | 11

DENVER

FORT COLLINS

LOVELAND

52 miles56 mins

13.6 miles29 mins

3-Miles

5-Miles

1-Mile

Area Intel & Demos

MATTRESS FIRM

FORT COLLINS ECONOMY

The Fort Collins-Loveland metro statistical area is home to several leading technology companies that have relocated to the area, including Hewlett Packard, Intel, and AMD. The largest employer in the MSA is Colorado State University (employment: 7,400, student enrollment: 33,236) which helps attract tech firms to the area with the university’s resources and research facilities. The Fort Collins-Loveland MSA is ideally located in the northern-most portion of Colorado in the heart of the Front Range Urban Corridor, an area along the eastern face of the southern Rocky Mountains that houses the most populated region of Colorado. The MSA’s ideal location within this corridor provides easy access to Denver, CO and Cheyenne, WY along the north/south Interstate 25, and to surrounding states east/west along Interstates 80 and 40. CLICK HERE FOR MORE INFORMATION.

DEMOGRAPHICS

Fort Collins is known for its educated, well-compensated workforce and quality of life, often sitting at the top of lists outlining the healthiest, happiest cities. The Fort Collins-Loveland MSA houses 500,000 residents within a 30-minute driving radius of the Property and has experienced a rapid growth rate in the last 15-plus years. The population has increased by roughly 83% over the last 15 years with continued expected growth, set to outperform most other metros in Colorado in 2016. Fort Collins-Loveland is ranked 13th out of 381 metropolitan areas for 2016 projected gains in product and service output and has an expected 2016 job growth rate of 2.4%.

TOP FORT COLLINS EMPLOYERSEMPLOYER # OF FULL-TIME EMPLOYEES

Colorado State University 7,400

University of Colorado Health 4,200

JBS Swift & Co. 4,100

Poudre School District 3,020

Agilent 2,800

Center Partners/Wal-Mart 2,000

Hewlett Packard 1,500

CITY AWARDS

2015 Next Top 10 Cities for Tech Jobs – Ranked No. 4 by Fast Company

2015 Top 10 Healthiest Cities – Ranked No. 9 by Livability.com

2016 Best-Performing City –Ranked No. 14 by the Milliken Institute

1-Mile 3-Mile 5-MileMedian $82,459 $60,925 $58,030Average $107,887 $79,288 $76,978

2016 HOUSEHOLD INCOMES 1-Mile 3-Mile 5-Mile2010 1,109 16,457 57,6002016 1,214 20,352 64,5562021 1,470 23,348 72,179

POPULATIONAVERAGE HH INCOME

$107,887

NORTHERN COLORADOREGIONAL AIRPORT

MATTRESS FIRM | 12

SEAN MACK smack@capitalpacific.com | (503) 675-8378

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SEAN TUFTS stufts@capitalpacific.com | (206) 743-8468

[ Copyright © 2016 Capital Pacific LLC ]

[ REPRESENTATIVE PHOTO ]

DAVID LEUTHOLD Leuthold Commercial Properties david@leutholdcommercial.com | (303) 871-9000

Listed in conjunction with