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 has completed the sale of a newly constructed, absolute net ground lease Burger King in the northern Indianapolis suburb of Westfield, Indiana. The sale price was $2.4 million, which represented a 5% cap rate, the lowest cap rate for a single-tenant Burger King in the state of Indiana.
Hanley Investment Group’s Dylan Mallory represented the Indianapolis-based seller and developer, Midland Atlantic Properties. Ryan Chakroff, of Marcus & Millichap in Denver, represented the buyer, a private investor also based in Denver.
Located at 819 East State Road 32 in Westfield, Indiana, the 3,235-square-foot Burger King sits on 1.33 acres and is a part of Monon Crossing, a new multi-tenant retail development.
“We procured seven offers during the marketing process including a full-priced offer within the first 24 hours,” said Mallory. “The entire transaction process — from marketing launch to close of escrow, was 45 days. This time period included resolving several issues caused by the Coronavirus pandemic.”
According to Mallory, the Burger King, at Monon Crossing, is scheduled to open this month and is operated by Carrols Restaurant Group (NASDAQ: TAST). Carrols is one of the largest restaurant franchisees in the US, operating more than 1,030 Burger King restaurants and over 60 Popeyes restaurants.
“Out-of-state investors were attracted to the growing affluent demographics of Westfield and Hamilton County,” Mallory added. “Westfield is located 20 miles from downtown Indianapolis and the property benefits from an extremely affluent, high growth trade area. The average household income exceeds $133,000 with population growth of more than 25% from 2010 to 2019.”
The City of Westfield is home to nationally recognized Grand Park: 400+ Acre Sports Complex, which opened in the summer of 2014. Grand Park attracts more than 2.5 million visitors annually, 73% of which are non-local visitors. Grand Park has attracted almost $700 million of economic development since opening, which includes several retail developments.
“Hanley Investment Group is continuing to remain very active during the Coronavirus pandemic, particularly in the sale of single-tenant net-lease assets with strong guarantees,” said Mallory. “With its proprietary national database and long-term relationships with investors, Hanley Investment Group is able to procure aggressive capital that is looking for high-quality retail investment opportunities in growing markets with good fundamentals.”
Mallory adds, “Quick service restaurants, like Burger King, can serve immediate needs and perform well in an economic downturn.” Hanley Investment Group has arranged the sale of 11 retail properties in the last 30 days, the majority of which were single-tenant net-lease properties and has similar properties available for sale.