Colorful buildings in the city
Case Study

TRI Holdings, LLC secures financing to complete new Duluth Trading Company headquarters

Colorful buildings in the city
Case Study

TRI Holdings, LLC secures financing to complete new Duluth Trading Company headquarters

Client need

TRI Holdings, LLC was hired to develop a new corporate headquarters facility for Duluth Trading Company in Mount Horeb, Wisconsin. The five-story, 108,000 square foot facility, developed by TRI Holdings and built by partner National Construction, will eventually become home to more than 250 employees, of which 100-150 are additional to the Village of Mount Horeb (the Village). With an expected $31 million investment in the Village, the project will contribute to the ongoing revitalization of Mount Horeb’s iconic downtown.

Before construction could begin, TRI Holdings’ biggest obstacle was financing the project. Due to the project’s location and size, traditional financing would have left a large gap in the capital stack. In order for the project to work, the developers at TRI Holdings would need a financing option that would not be tied to the appraised value of the facility, and would include funds from the Village.

Baker Tilly Capital solution

The capital sourcing specialists within Baker Tilly Capital, LLC worked closely with the development team at TRI Holdings to deliver a comprehensive capital structure to bring the project to life. Our team assisted the developers throughout the pre-development and financing period, providing advisory and negotiation support.

Our team identified a lending solution that would provide the capital needed to complete the project. In addition, the project received funds from the Village.


The project received $3.5 million in up-front funds from the Village, along with an additional $1 million in pay-as-you-go tax increment financing. In addition, our team secured a long-term, fixed rate loan for the new facility. Our comprehensive capital structure package met the needs of all parties involved in the transaction, while reducing the amount of up-front equity TRI Holdings needed to contribute to the project, which increased the organization’s return on investment.

 “We were confident in Baker Tilly Capital’s team to help source capital for us to fully finance the project. With their advisory and negotiation support, the state-of-the-art facility will become a reality and prove to be a transformational project for the Village of Mount Horeb.”Jeff Grundahl and Tom Walzer, Managers – TRI Holdings, LLC

For more information on this deal, or to learn how Baker Tilly Capital specialists can help, contact our team.

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