Listed by Mid-America Real Estate
$3,289,000
Northern Tool + Equipment
Details
Property Type Retail
Sub Type Storefront
Square Footage 21,550
Cap Rate 7.5%
NOI $246,707
Occupancy 100%
Tenancy Single
Lease Type NN
Lease Term 10
Lease Expiration 09/29/2030
Remaining Term 4.2
Lease Options Two, 5-year
Price per SqFt $153
Year Built 2007
Acreage 1.730
Investment Type Net Lease
Tenant Credit Corporate Guarantee
Lease Commencement 09/30/2020
Retail | 7.50% CAP | 21,550 SqFt
Marketing description
Mid-America Real Estate, in cooperation with Mid-America Real Estate - Indiana, LLC, has been retained on behalf of the owner to sell the 100% fee simple interest in the 20,389 square foot, freestanding Northern Tool + Equipment location located at the Northeast corner of Century Plaza off W Lincoln Highway (US-30) Merrillville, Indiana. The subject offering features a 4.5-year corporate net lease located in a top tier regional retail node.
Situated at the northeast corner of Century Plaza off W. Lincoln Highway (US-30) with direct visibility to Interstate 65 and within Merrillville’s dominant regional retail node.
Investment highlights
- TENANT OVERVIEW:
- Northern Tool + Equipment is a billion-dollar, family-owned retailer and manufacturer of tools, light industrial equipment, and DIY supplies. The company operates more than 120 store locations across 20 states and provides online shopping with nationwide delivery, offering over 100,000 products.
- BELOW REPLACEMENT COST OPPORTUNITY | $161 PSF PRICING
- This opportunity affords an incoming investor the opportunity to acquire the property at a low basis of $161 per square foot while enjoying an in-place yield of 7.50% bolstered by cash flow from a corporate net lease. This pricing is below replacement cost for a building of similar quality.
- DOMINANT REGIONAL RETAIL NODE | TOP 10% NATIONALLY
- The subject offering benefits from its location within a top-performing regional retail node, which ranks in the top 10% nationally, according to Placer.ai. The corridor has generated more than 8 million visits over the past 12 months and features a strong lineup of national retailers, including Meijer, Walgreens, Aldi, Dollar Tree, Panera Bread, CVS, Planet Fitness, and Starbucks, among others. This concentration of established brands continues to drive consistent consumer traffic and reinforces the node’s dominance within the trade area.
- HIGHLY OCCUPIED SUBMARKET | LOW VACANCY RATES
- The submarket of the subject offering exhibits exceptionally high occupancy, with a vacancy rate of only 6% for spaces 10,000 square feet and larger. Additionally, the submarket demonstrates a limited supply of available high-quality box space along US Highway 30, further enhancing its competitiveness and overall desirability.
- NORTHWEST INDIANA GROWTH | STRONG ECONOMIC OUTLOOK
- According to the University of Indiana, the 2020 GRP (Gross Regional Product) in the Northwest Indiana region grew from an estimated $36.4 billion to $50.1 billion in 2023 and an estimated $51 billion in 2024, averaging approximately 6.6% annual growth. The economy is characterized by steady growth in manufacturing, logistics, health care, and technology related services.
- EXCELLENT POSITIONING ON LINCOLN HIGHWAY | HIGH TRAFFIC COUNTS
- Northern Tool + Equipment is situated in the northeast corner of Century Plaza, adjacent to W. Lincoln Highway (US-30, 63,891 VPD), offering strong visibility from both eastbound and westbound traffic. The subject offering is in close proximity to the I-65 (99,305 VPD) interchange, which provides convenient regional access to the surrounding communities. With multiple entrances along US-30 and Broadway, Northern Tool is easily accessible to customers and tenants alike.
Listing Contacts
Listed by Mid-America Real Estate
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$246,707.00
$20,558.92/mo
Valuation Metrics
0
DSCR
7.5%
Cap Rate
7.5%
ROI
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