GREENFIELD, Ind. - Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm arranged the pre-sales of three high-profile, single-tenant quick-service drive-thru restaurant pads to a Home Depot and Kohl's-anchored shopping center in the Indianapolis metro area. The transactions consisted of a Chipotle Mexican Grill, Panera Bread and a Chick-fil-A ground lease in Greenfield, Indiana, and were sold to three separate out-of-state 1031 exchange buyers. The combined value of the transactions totaled more than $9 million and achieved record-low cap rates.
Hanley Investment Group's Vice President Dylan Mallory and Midland Atlantic Properties' Senior Associate Jacque Haynes represented the seller and developer, Indianapolis-based Midland Atlantic Properties, in all three transactions. The properties were located 25 miles east of downtown Indianapolis at the intersection of Interstate 70 and State Road 9 in Greenfield, Indiana.
"We executed a pre-sale marketing strategy for each of these new construction, popular fast-casual restaurants," said Mallory. "All three transactions closed at the full asking price and achieved record-low cap rates for new construction quick-service restaurant deals in the state of Indiana."
In the first transaction, a 2,616-square-foot single-tenant Chipotle Mexican Grill located at 2165 N. State Street was purchased by a private investor based in Simi Valley, California. The Chipotle featured a mobile order drive-thru "Chipotlane" and was the first to open at the property in early July. The sale price was $2,960,000, which represents a cap rate of 4.35%. The buyer was represented by David Leibowitz of IREA Inc. in Encino, California.
In the second transaction, a 3,500-square-foot single-tenant Panera Bread located at 2173 N. State Street was purchased by a private investor based in Hillsborough, California. The Panera location featured their new 'Next Generation Cafe' format which has two individual drive-thru lanes. The sale price was $2,935,000, representing a 4.65% cap rate. The buyer was represented by Jeff Ida and Doug Ogard of Marcus & Millichap in San Francisco.
In the third transaction, a 4,500-square-foot single-tenant Chick-fil-A ground lease located at 2203 N. State Street was purchased by a private investor based in Dallas, Texas. The sale price was $3,150,000, representing a 3.65% cap rate. The buyer was self-represented. The three individual quick-service restaurants are a part of a new development known as Greenfield Market. Greenfield Market is located along N. State Street, Greenfield's primary retail corridor, and sits as a pad to a large Home Depot and Kohl's-anchored shopping center. Additional nearby retailers include Walmart Supercenter, PetSmart, Tractor Supply, Starbucks, Panda Express, Kroger, Popeyes, Buffalo Wild Wings, Sherwin-Williams, Cracker Barrel and Anytime Fitness, among others.
"We were able to successfully execute a pre-sale marketing strategy with each of the individual properties," said Mallory. "The opportunities were marketed for sale prior to the tenants being open for business, which allowed us to capitalize on the aggressive cap rate environment that existed in the beginning of the year. Each property sold at the full asking price and at record-breaking prices for the state of Indiana and the Midwest.
"The properties were excellent opportunities for 1031 investors looking for high-quality, new-construction QSR investments backed by long-term corporate leases," notes Mallory. "We made an effort to showcase the properties in their best light by highlighting the strength of the real estate and uniqueness of the assets."
Mallory adds, "All three transactions closed escrow between the beginning of July and the end of August, around the time each tenant opened for business. As of September 15th, all three tenants are open and operating at Greenfield Market."
Over the last four years, Hanley Investment Group has sold $780 million in retail properties in the Midwest. Since mid-2020, Mallory has arranged the sale of 21 retail properties valued at nearly $80 million in the state of Indiana. At the end of July, Mallory, in association with ParaSell, Inc., completed the sale of South Pointe Crossing, a Kroger shadow-anchored retail property in Terre Haute, Indiana. There were two separate transactions in the execution of the break-up sale strategy at the center with two different 1031 exchange buyers, which featured a free-standing single-tenant Starbucks and a 41,663-square-foot multi-tenant retail center. In mid-May, Mallory, along with Jackson Investment Group, completed the sale of an 11,400-square-foot retail center in Zionsville, a northern suburb of Indianapolis. In March, Mallory completed the sale of a net-leased multi-tenant medical property in Plainfield, Indiana.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with over a $9.4 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients' needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestment.com.
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Dylan Mallory, Vice President
Email: Send Email
Address:3500 E. Coast Highway, Suite 100
City: Corona del Mar
Country: United States