Lowe’s

Lowe’s – Naperville, Illinois (Chicago Metropolitan Statistical Area – DuPage County)

The Lowe’s Home Improvement store located in Naperville, Illinois, presents investors with the opportunity to acquire a high-performing, single-tenant retail asset leased to one of the largest and most creditworthy home improvement retailers in the world. Situated in the heart of the Chicago MSA, Naperville is one of the most affluent and stable suburban communities in the region, offering exceptional demographic support, high homeownership rates, and consistent demand for construction, remodeling, and property improvement services.

This Lowe’s location is positioned on a highly visible retail corridor and serves a wide spectrum of customers including residential homeowners, real estate investors, contractors, and property managers. The property benefits from a corporate-backed, triple-net lease with Lowe’s Companies, Inc., and offers investors the advantages of long-term income stability, minimal landlord responsibilities, and a strong real estate footprint in one of the Midwest’s most economically resilient submarkets.

The store functions as a full-format home improvement center and plays a critical role in Lowe’s regional distribution, logistics, and omnichannel fulfillment strategy. With growing e-commerce penetration and high construction activity in suburban Chicago, this location is a strategic node in Lowe’s midwestern operations.

Tenant Overview – Lowe’s Companies, Inc.

Lowe’s Companies, Inc. (NYSE: LOW) is the second-largest home improvement retailer in the United States, serving more than 19 million customers per week across over 1,700 stores nationwide. Founded in 1946 and headquartered in Mooresville, North Carolina, the company has consistently demonstrated financial strength, operational resilience, and long-term commitment to both physical retail and digital commerce.

Lowe’s serves both DIY homeowners and professional contractors, offering a wide variety of building materials, hardware, appliances, fixtures, tools, paint, flooring, outdoor living products, and installation services. The company continues to invest in its digital platform, logistics infrastructure, and Pro customer loyalty program to enhance long-term value and market competitiveness.

Financial and operational highlights include:

• Over $95 billion in annual revenue
• Investment-grade credit rating (A- by S&P)
• 300,000+ employees across North America
• More than 1,700 stores in the U.S.
• Strong free cash flow and disciplined capital deployment
• Pro customer segment growth strategy and Pro Xtra loyalty platform
• Active capital investment in store modernization and supply chain technology
• Fortune 50 publicly traded company

Lowe’s has a national reputation for operational consistency and is a premier tenant in the net lease investment sector due to its strong credit, long-term leases, and ability to adapt to both brick-and-mortar and digital retail trends.

Lease Structure – Triple-Net (NNN)

The Naperville Lowe’s is leased under a corporate-guaranteed triple-net (NNN) lease with no landlord responsibilities for taxes, insurance, or maintenance. This lease structure offers passive income for investors and ensures that all major obligations are handled by the tenant.

Key lease features typically include:

• Corporate lease guaranty from Lowe’s Companies, Inc.
• Long-term initial lease with renewal options
• Absolute triple-net lease with tenant responsibility for all operating expenses
• Minimal or zero landlord obligations
• Annual or periodic rental increases depending on lease schedule
• High likelihood of renewal given long-standing store performance and strategic trade area presence

These attributes make the property an excellent option for investors seeking durable cash flow with limited exposure to tenant risk or operational costs.

Market Overview – Chicago MSA

The Chicago metropolitan statistical area is the third-largest MSA in the United States, with a population exceeding 9.5 million people. The region is a global center of finance, logistics, healthcare, education, and advanced manufacturing. It is home to multiple Fortune 500 companies and features one of the most developed infrastructure systems in North America, including interstates, Class I railroads, international airports, and inland ports.

Chicago’s metro area includes a diverse mix of urban and suburban submarkets with high barriers to entry, strong employment centers, and ongoing demand for residential and commercial development. With a balanced mix of renters and homeowners, demand for home improvement products remains consistent year-round.

Chicago MSA highlights:

• Population over 9.5 million across three states
• One of the most diversified economies in the U.S.
• Home to global companies like Boeing, United Airlines, McDonald’s, and Allstate
• Major construction and real estate investment hub
• Extensive transportation and logistics infrastructure
• Consistent housing turnover and suburban development
• One of the top U.S. markets for remodeling and home reinvestment

Chicago remains a core market for national retailers due to its population density, broad economic base, and established consumer spending patterns.

Submarket Spotlight – Naperville, IL (DuPage and Will Counties)

Naperville is one of the most desirable and affluent suburbs in the Chicago metropolitan area. It is consistently ranked among the top places to live in Illinois due to its highly rated public schools, safe neighborhoods, family-friendly environment, and exceptional infrastructure. Naperville combines residential stability with commercial growth and serves as a major regional hub for retail, education, and employment.

Within a 5-mile radius of the property, demographic indicators are among the highest in suburban Chicago:

• Population exceeds 175,000 residents
• Median household income is over $120,000
• High homeownership rate with a large single-family housing stock
• Strong educational attainment with over 60 percent holding bachelor’s degrees
• Thriving professional class and corporate employment base
• Consistent building permits for new housing and commercial renovation

These factors provide strong support for Lowe’s customer base, which includes homeowners pursuing renovation projects, contractors involved in residential development, and property managers maintaining commercial and multifamily properties.

Property Overview – Site Format and Features

The property is a full-format, freestanding Lowe’s Home Improvement store with a building footprint typically ranging between 115,000 and 140,000 square feet. The facility includes a large garden center, designated Pro Desk area, tool rental department, and customer pickup and loading zones.

Core property features include:

• Prototypical store layout designed for retail and contractor use
• Drive-through lumber loading area
• Extensive surface parking with multiple access points
• Dedicated tool rental and equipment checkout
• Garden center with outdoor and seasonal product staging
• Appliance, flooring, and cabinetry departments
• Commercial contractor entrance and logistics support area
• Integration with Lowe’s digital platform for online order pickup and curbside service

This combination of retail functionality and logistical efficiency supports high-volume customer traffic, online-to-store order conversion, and professional delivery scheduling.

Strategic Relevance – Omnichannel and Regional Fulfillment Role

Lowe’s continues to expand its capabilities in omnichannel retail, and locations like Naperville serve not only as retail destinations but as regional fulfillment centers for Pro contractors and e-commerce customers.

Key operational roles of this property include:

• E-commerce order fulfillment for same-day and next-day delivery
• Job site staging for contractors through the Pro Xtra program
• Pickup location for digital and app-based customer orders
• Inventory holding for high-demand seasonal and bulk items
• Equipment rental and return operations for short-term construction needs
• In-store design services for kitchens, flooring, and home renovations

These value-added services make the location indispensable for both everyday customers and repeat-use professionals who depend on proximity, service, and inventory access.

Investment Highlights

• Leased to Lowe’s Companies, Inc., a Fortune 50 tenant with strong investment-grade credit
• Long-term triple-net lease structure with passive ownership
• Strategic location in Naperville – one of the most affluent suburbs in the Chicago metro area
• Dense residential population with high homeownership and discretionary spending
• Property serves as both a retail center and logistics support hub
• Proven tenant performance in high-traffic retail corridor
• National brand recognition with strong lease renewal probability
• Ideal for 1031 exchange, family office portfolios, or institutional allocations
• Minimal landlord responsibilities with corporate-backed lease

Conclusion

The Lowe’s store in Naperville, Illinois represents an exceptional opportunity to acquire a stable, long-term, income-producing asset backed by one of the most respected and financially sound retailers in the United States. With a corporate lease, full triple-net structure, and strategic positioning in a top-performing suburban trade area, the property provides investors with secure cash flow, upside potential, and minimal operating obligations.

As demand for home improvement, property renovation, and residential construction continues across suburban Chicago, Lowe’s is well positioned to capitalize on these trends—and the Naperville location will remain a critical part of that strategy. Whether for a long-term hold, 1031 exchange, or portfolio diversification play, this property offers the fundamentals investors value most: tenant strength, location quality, and reliable passive income.