Duluth Trading Company NNN Retail
For Sale
Contact for pricing
5190 Hoffman Blvd, Hoffman Estates, IL 60192
Retail NNN with landlord-only roof and structure; Duluth Trading Company lease with about 5.5 years remaining.
Property Size14,525 SF
Price / SF$300
Days on Market111
Property Features for 5190 Hoffman Blvd
General Information
Standard status
Active
Size
14,525 SF
Property subtype
RETAIL
Building Details
Year Built
2016
Tenancy
Single
Listing Agency:
Matthews Real Estate Investment Services | Dallas
(315) 730-6228
Listed By:
Josh Bishop · License #688810(TX)
(315) 730-6228
Source:
Moodyscre
Added: Apr 29
Changed: Aug 13
Last Checked: Aug 17 at 9:44AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Matthews Real Estate Investment Services | Dallas
Investment Insights
Based on property information with market context.
This 2016 build-to-suit retail property is leased to Duluth Trading Company under a 15-year lease structure with approximately 5.50 years remaining on the base term. The lease is a retail NNN structure where the landlord is responsible for roof and structure only. The lease includes a corporate guaranty from Duluth Holdings, Inc (NASDAQ: DLTH), providing added credit support. Contractual rent increases are stated as 8% every five years, with the next increase scheduled for November 2026.
The property is located at 5190 Hoffman Blvd in Hoffman Estates, IL 60192, and sits adjacent to NOW Arena, which hosts concerts, sports, and other events. The surrounding area is described as an affluent Chicago suburb located approximately 30 miles west of downtown.
With the remaining base-term timeline and built-in rent step-ups, the asset is positioned for buyers seeking an NNN-style retail holding with defined lease and escalation terms.
The property is located at 5190 Hoffman Blvd in Hoffman Estates, IL 60192, and sits adjacent to NOW Arena, which hosts concerts, sports, and other events. The surrounding area is described as an affluent Chicago suburb located approximately 30 miles west of downtown.
With the remaining base-term timeline and built-in rent step-ups, the asset is positioned for buyers seeking an NNN-style retail holding with defined lease and escalation terms.
Key Highlights
- 2016 build‑to‑suit construction for Duluth Trading Company
- Approximately 5.50 years remaining on the base term of a 15‑year lease
- Retail NNN structure with landlord responsible for roof and structure only
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$201,609
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.63%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,032,180
$4.0M
Cap Rate 7%
$2,880,129
$2.9M
Cap Rate 9%
$2,240,100
$2.2M
Market Conditions
NOI Build-Up for 14,525 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$313.7K $21.60/SF
− Vacancy
−$25.7K −$1.77/SF
EGI
$288.0K $19.83/SF
− OpEx
−$86.4K −$5.95/SF
NOI
$201.6K $13.88/SF
Area
Cook County, IL
Vacancy
8.20%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,032,180
Cap Rate 7%
$2,880,129
Cap Rate 9%
$2,240,100
Alternative Uses
Best Use
Retail
$2.88M
$2.52M – $3.36M
NOI $201,609 @ 7.0% cap · market cap 4.63%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.01M
$4.39M – $5.85M
NOI $351,037 @ 7.0% cap · market cap 8.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
496
Businesses Nearby
122k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 73%
Shops & Services 9%
Dining 6%
Apparel 6%
Target
Superstores
89,387 visits/mo
0.4 miles
Chase Bank
Shops & Services
10,745 visits/mo
0.4 miles
Ruth's Chris Steak House
Dining
7,525 visits/mo
0.5 miles
Sephora
Beauty & Spa
7,002 visits/mo
0.5 miles
White House Black Market
Apparel
2,268 visits/mo
0.5 miles
Demographics for 60192, IL
16,550
Population
6,090
Households
2.7
Avg Household Size
43
Median Age
59%
College-Educated
96%
High-School Grad
11.1 sq mi
ZIP Area
1,491
Density / Sq Mi
$149,992
Median Household Income
$73,016
Median Earnings
$2,852
Median Rent
$413,500
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Retail NNN with landlord-only roof and structure; Duluth Trading Company lease with about 5.5 years remaining.
Where is this nnn property located?
The property is located at 5190 Hoffman Blvd Hoffman Estates, IL.
What is the asking price?
The asking price for this property is $4,357,500.
What are key features of this property?
This property features: 2016 build‑to‑suit construction for Duluth Trading Company; Approximately 5.50 years remaining on the base term of a 15‑year lease; Retail NNN structure with landlord responsible for roof and structure only
