Available Property

Hobby Lobby

Petsmart
1730 - 1740 Mall Drive
Duluth, MN 55811
$15,707,000

The subject property is a shopping center 100% leased to 2 national retailers - Hobby Lobby and Petsmart , located in the central shopping hub in Duluth, Minnesota. The Property consists of ± 106,349 s.f. of retail buildings on an oversized ± 10.3 acre parcel of land adjacent to the area’s only enclosed mall, Miller Hill Mall (Sears, Younkers, J.C. Penney, Dick’s Sporting Goods, ULTA, DSW Shoe Warehouse and Barnes & Noble Booksellers). Also in the immediate area are Target and Burning Tree Plaza (Best Buy, TJ Maxx, Dunham’s Sports, Hancock Fabrics, David’s Bridal, Sally’s Beauty Supply & Harbor Freight Tools). A freestanding Aldi Foods (ground lease) will be constructed on a separately platted parcel in parking lot in early 2017. See site plan on following page.

The largest concentration of retail in the area surrounds the Miller Hill Mall. National and regional traffic generators include: Sam’s Club, Walmart Superstore, Cub Foods, Shopko Supermarket, Walgreens Drugstore, Home Depot, Kohl’s, Menard’s, Gander Mountain, Super 1 Grocery, Bed Bath & Beyond, Home Choice, Michael’s Crafts, OfficeMax, Petco, Pier 1 Imports, HOM Furniture, Firestone Tires, Tires Plus, Affinity Plus Federal Credit Union, Duluth Teacher’s Credit Union, National Bank of Commerce, Republic Bank, U.S. Bank, Wells Fargo Bank, Sprint, Verizon, Buffalo Wild Wings, Cold Stone Creamery, Culver’s, Olive Garden, Outback Steakhouse, Panera Bread, Perkin’s, Starbucks, Taco Bell, Texas Roadhouse, Wendy’s, Fairfield Inn, Days Inn, La Quinta Inn, Residence Inn and North Star Ford.

Duluth MN and neighboring Superior WI form the second largest metropolitan area in Minnesota with 280,000 residents. Known as the Twin Ports, this area is the hub for commerce, education, health care, aviation, logistics and tourism. Twin Ports is the Great Lakes’ largest port transporting coal, iron ore and grain. Duluth is accessible to oceangoing vessels from the Atlantic Ocean via the Great Lakes Waterway and Saint Lawrence Seaway. This Property will provide an investor with predictable cash flow for many years.

Tenant: Hobby Lobby, Petsmart and Savers

Hobby Lobby began operation August 3, 1972 with 300 square feet of retail space located in North Oklahoma City. This was a retail outgrowth of Greco Products, a miniature picture frame company, founded by David Green in 1970. In January 1973, the operation was moved to a house near N.W. 23rd and Western, and the amount of retail space was increased to approximately 1,000 square feet. Over the years this modest beginning has grown into 600 stores which operates in 41 states. The operation, now known as Hobby Lobby Stores, Inc., can no longer be considered just an arts and crafts store. With departments ranging from crafts, hobbies, picture framing, jewelry making, fashion fabrics, floral, cards & party, baskets, wearable art, home accents, and holiday supplies, Hobby Lobby is the place to shop with Super Selection, Super Savings . . . Everyday! Hobby Lobby headquarters are located in a 3.4 million square foot manufacturing, distribution and office complex in Oklahoma City. Hobby Lobby is #118 on Forbes List of Largest Private US Companies.

PetSmart, Inc. (PETM) is the largest specialty retailer of services and solutions for the lifetime needs of pet. The #1 US specialty retailer of pet food and supplies operates more than 1,400 pet stores in the United States and Canada, providing a broad range of competitively priced pet food and pet products; services including pet training, pet grooming, pet boarding and pet adoption services. In addition to providing great value, the company has the broadest, deepest product range in the industry, including thousands of products exclusive to PetSmart. 800 stores have a full service veterinary hospital, branded as Banfield, The Pet Hospital. Average store size is 21,350 sf and average sales / SF is $243. Comparable store sales in 2014 were 2.6%. In December 2014, Petsmart agreed to be acquired and taken private by BC Partners Inc. The price paid was $8.7 billion or $83 per share.

Savers: Sixty year old for profit, global thrift retailer offering great quality, gently used clothing, accessories and household goods. Our business model of purchasing, reselling and recycling gives communities a smart way to shop and keeps more than 650 million pounds of used goods from landfills each year. Savers supports more than 120 nonprofit organizations by paying them for donated goods which support their vital community programs and services. Brands include Savers (United States), Value Village (U.S. and Canada), Unique (U.S.), Village des Valeurs (Quebec) and Savers Australia. Savers operates 330 stores worldwide.