Indianapolis—A private investor from Franklin Lakes, N.J., is the new owner of Raceway Commons, a 32,748-square-foot multi-tenant retail center in Indianapolis. Baceline Investments of Denver sold the property for $7.9 million.
Raceway Commons is situated on about 4.9 acres at 55 South Raceway Road, at the signalized intersection of Rockville Road (US 36) and Raceway Road on the west side of Indianapolis. This location provides access and visibility, as well as a high traffic of approximately 65,000 cars per day.
The neighborhood shopping center was built in 2003, and had a 94 percent occupancy at the time of sale. The property is leased to an array of national or regional tenants including Panera Bread, Jackson Hewitt, Sprint, Great Clips, Cold Stone Creamery and Sun Tan City.
Due to the property’s strong location and Panera’s interest in adding a drive-thru and extending their lease, Hanley Investment Group was able to generate multiple offers.
“Because we were the second brokerage company to market the property, we thoroughly reviewed the property and existing tenants to find ways to maximize value and peak investor interest. Utilizing our extensive proprietary database, we were able to procure a qualified 1031 exchange buyer and help an experienced multifamily owner through his first retail purchase,” Wohl said in prepared remarks. “The buyer acquired the asset with new financing but did not have a loan contingency and the escrow process went very smoothly.”
Rockville Road is the main retail thoroughfare in western Indianapolis with major credit tenants including Sam’s Club, Super Target, Walmart Supercenter, Bed Bath & Beyond, Best Buy, Big Lots, Dick’s Sporting Goods, Gander Mountain, H.H. Gregg, Hobby Lobby, HomeGoods, Kroger, LA Fitness, Lowe’s, Marshalls, Michaels, PetSmart and Sears.
“It still remains a great time to sell,” added Wohl. “While supply of available product is beginning to increase, investors are still paying a premium for the right location. 1031 exchange buyers continue to be a significant driver to the retention of peak pricing, causing most non-exchange investors frustration as they find it challenging to compete with such aggressive capital. Even with the threat of rising interest rates, I don’t see prices changing through the end of the year as demand remains strong.”