Chicago & Midwest + Midwest + Retail | September 19, 2022

QSR Pad Site Sales Set Indiana Cap Rate Records

Hanley Investment Group Real Estate Advisors 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, IN, 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 VP Dylan Mallory and Midland Atlantic Properties’ senior associate Jacque Haynes represented the seller and developer, Indianapolis-based Midland Atlantic Properties, in all three transactions.

“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.”

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Hanley's Mallory

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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