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PROPERTY INFORMATION
Address: 5115 Burning Tree Road, Duluth, MN
Square Feet: 182,969
Occupancy: 98.42%
FINANCIAL SUMMARY
Year 1 NOI: $2,136,855
Year 2 NOI: $2,199,558
Year 3 NOI: $2,233,535
INVESTMENT HIGHLIGHTS
STRONG ANCHOR TENANTS
T.J. Maxx has been a tenant since 1994. This is one of T.J. Maxx's top performing stores in the country with annual sales in excess of $468 per square foot. T.J. Maxx has a credit rating of A+ and is ranked 87 on the Fortune 500 list.
Best Buy recently exercised a five-year option to renew their lease. They are an original tenant in the Property and have lease term through January 2023. The Burning Tree store is the only Best Buy within 118 miles.
Best Buy and T.J. Maxx make up 42% of the Property's GLA and have both exercised multiple options.
MASSIVE TRADE AREA
The Miller Hill Mall Trade Area is made up of over 550,000 people and draws shoppers from over a 100-mile radius. It is the preferred shopping destination of northern Minnesota, Wisconsin and the Thunder Bay, Canada area because Miller Hill Mall is the only enclosed mall in the Northland. The Property is directly adjacent to the market's #1 grocery store (Super One Foods) and Target.
DURABLE RENT ROLL
Eighty percent of the tenants in the GLA have been in the Property for 10 years or longer. Sixty percent of the GLA are original tenants.
STRONG AND RESILIENT TOURIST MARKET
Tourism is Duluth's largest industry - 6.7 million people visit Duluth every year accounting for over $950 million in economic impact. Popular events include Grandma's Marathon, as well as the Tall Ships Festival. Attractions like the Glensheen Mansion and the William A. Irvin ore boat also attract visitors making Duluth a travel destination.
NATIONALLY RECOGNIZED DESTINATION
Duluth has always had an excellent quality of life but it is now being nationally recognized as a top 10 U.S. destination (Lonely Planet) and one of the country's "Best Towns" (Outside Magazine). As a result, the unemployment rate is a low 2.5%.
COLLEGE TOWN
Duluth is home to the University of Minnesota Duluth, St. Scholastica, Lake Superior Community College, Fond Du Lac Community College and across the bay, the University of Wisconsin - Superior, totaling over 25,000 students.
HIGH OCCUPANCY
The Property enjoys high occupancy of 98% providing an investor outstanding cash flow and long-term residual value. The entire Miller Hill retail trade area is a healthy market with only 2.89% vacancy.
EASILY ACCESSIBLE FOR OUT-OF-STATE INVESTORS
The city, and therefore the Property, are easily accessible via the Duluth International Airport with many flights to and from Minneapolis and Chicago daily. The airport has a new $78 million terminal and serves 300,000 passengers annually.
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