Northern Tool + Equipment

Lowest
Cap Rate

6.25%

Lowest cap rate over past 24 months

Average
Cap Rate

6.85%

12 mo avg with 5+ yr lease term

Overview

Northern Tool stores are typically free-standing buildings between 15,000 and 25,000 square feet, situated on parcels of 1.5 to 3 acres. The majority of leases are absolute NNN with 15- to 20-year terms, 10% rent escalations every 5 years, and renewal options. Sites are commonly found in suburban markets, often in retail corridors with complementary big-box or hardware co-tenants.

Average Property & Lease

Average Sale Price	$4,000,000 – $6,000,000
Average NOI	$260,000 – $400,000
Building SF	15,000
Lease Term	15 Years
Escalations	10% Every 5 Years
Stock Symbol	N/A

CREDIT RATING

S&P	N/A
Moody's	N/A

TENANT DESCRIPTION

Northern Tool + Equipment was founded in 1981 by Don Kotula in Burnsville, Minnesota, originally as a mail-order business selling high-quality tools at affordable prices. The company has grown into a national brand with a strong catalog and e-commerce presence, as well as a growing number of brick-and-mortar retail stores. It caters primarily to contractors, tradespeople, and serious DIYers, offering tools, equipment, and industrial-grade machinery not commonly found in big-box stores.

Founded	1981
Headquarters	Burnsville, MN, U.S.
Number of Locations	130
Revenue	$1.5 B
Company Website	https://www.northerntool.com
Key Principal	Sagar Kotula