Listed by Matthews
$4,357,500
Duluth Trading Co. | 9% Cap | 2016 Construction
Details
Property Type Retail
Sub Type Storefront
Square Footage 14,525
Cap Rate 9%
NOI $392,175
Occupancy 100%
Tenancy Single
Brand/Tenant Duluth Trading Co
Lease Type NNN
Lease Term 15
Lease Expiration 08/24/2031
Remaining Term 5.1
Rent Bumps Yes
Lease Options Four, 5-Year Options
Year Built 2016
Investment Type Net Lease
Tenant Credit Corporate Guarantee
Lease Commencement 11/01/2016
Ground Lease No
Ownership Fee Simple
8% Rent Bump in November 2026
Marketing description
Duluth Trading Company is a well-recognized American lifestyle apparel retailer known for its durable workwear, casual clothing, and functional gear designed for both men and women. The brand has cultivated a strong niche following through its emphasis on quality, practicality, and distinctive, often humorous marketing approach. With a growing omnichannel presence and a loyal customer base, Duluth Trading has positioned itself as a differentiated player within the competitive apparel retail sector, appealing to consumers seeking rugged, purpose-built clothing.
Investment highlights
- 2016 build-to-suit construction for Duluth Trading Company
- ± 5.50-Years remaining on the base term of a 15-Year lease
- Retail NNN lease structure (Landlord responsible for roof and structure only)
- Corporate guaranty from Duluth Holdings, Inc (NASDAQ: DLTH)
- Attractive 8% rent increases every 5-years (next increase November 2026)
- Affluent demographics with an average household income of more than $152,900 annually
- 5-Mile population of more than 171,320 residents
- The subject property is located adjacent to NOW Arena which hosts various concerts, sports, and other events
- Hoffman Estates is a wealthy suburb of Chicago and is located just 30-mile West of downtown
- Duluth Trading Company is a national apparel retailer that is focused on durable, functional workwear
- Publicly traded on the NASDAQ stock exchange (DLTH)
- Duluth currently operates ± 70 locations nationwide with plans to continue expansion
- Established, Differentiated Brand Identity - Duluth Trading has built a strong niche in the apparel market with its focus on durable, functional workwear and distinctive, humor-driven marketing. This differentiated positioning supports customer loyalty and reduces direct competition with traditional fashion retailers.
- Omnichannel Revenue Model with E-Commerce Strength - The company generates a significant portion of sales through its direct-to-consumer platform, including e-commerce and catalog channels. This diversified sales approach enhances margins, broadens geographic reach, and reduces reliance on brick-and-mortar performance alone.
- Growth-Oriented Retail Expansion Strategy - Duluth continues to selectively expand its physical store footprint in high-performing markets, using data-driven site selection to complement its digital presence. New store openings serve as both revenue drivers and brand awareness catalysts.
- Proprietary Product Offering and Customer Loyalty - The company emphasizes in-house designed products that are difficult to replicate, supporting stronger margins and brand exclusivity. Combined with a loyal, repeat customer base, this creates a stable revenue foundation and long-term growth potential.
Listing Contacts
Listed by Matthews
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$392,175.00
$32,681.25/mo
Valuation Metrics
0
DSCR
9%
Cap Rate
9%
ROI
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