Hobby Lobby/PetSmart - 1734 Mall Dr, Duluth, MN 55811

View Offering Memorandum and Document Vault

LONG TERM LEASES IN PLACE

After 4 years at the property, Hobby Lobby amended their lease on 7/26/16 extending the term through 7/1/2026. The amended lease includes two, five-year options. PetSmart has a new lease that expires on 3/31/27 with four, five-year renewal options.  These two long-term leases provide long-term cash flow for years to come.

LIMITED COMPETITION

Hobby Lobby and PetSmart both hold an excellent market position with limited competition within close proximity. Hobby Lobby’s only direct competition in the trade area is Michaels, while PetSmart’s only competition is Petco.

STRONG CORPORATE TENANTS

Hobby Lobby is a closely-held, privately-owned chain of retail arts and crafts stores based in Oklahoma City, Oklahoma. They operate more than 750 stores in 47 states. Hobby Lobby is a highly successful big box retailer with a conservative corporate strategy that holds little corporate debt.

PetSmart is the largest specialty pet retailer of services and solutions for the lifetime needs of pets with 1,500 pets stores in the United States, Canada, and Puerto Rico. PetSmart earned $7 Billion in revenue for 2017 and has an S&P rating of B+.

GROCERY ANCHORED TENANT

PetSmart and Hobby Lobby benefit from the international grocery chain Aldi located on site. Aldi is currently on its first year of a 15-year ground lease.

TRAFFIC COUNTS

Over 40,000 VPD provide the space excellent market exposure.