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Shopping Strip

Drive-Thru Dunkin' Retail Center

12980 IN-23, Granger, IN 46530

Listing Price: $2,900,000

Cap Rate
7.60%
Gross SF
17,539
Rentable SF
17,539
Price/Gross SF
$165.35
Lot Size
5.24 acres
Year Built
1998

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Granger Station, a 17,539 square foot, all-brick, multi-tenant retail center located just outside South Bend, Indiana (home to the University of Notre Dame) in the town of Granger. Positioned at a signalized intersection, Granger Station is visible to nearly 20,000 vehicles per day, and benefits from multiple points of ingress and egress. The property is shadow anchored by a 90,000 square foot Martin’s Grocery Store, the dominant grocer in the region (owned by SpartanNash – a Fortune 400 company), and benefits from this important traffic driver. There is also a McDonald’s located on an outpad to this shopping center, as well as an Ace Hardware. Dunkin’ Donuts just signed a new 10-Year NNN lease on the endcap unit, equipped with a drive-thru. The other major tenant is ATI Physical Therapy, with over 5 years remaining on their lease. The Weighted Average Lease Term (WALT) across the rent roll is 4.84 years. Offered free and clear of existing debt and priced at a 7.6% CAP rate, Granger Station is priced to achieve attractive leveraged returns, with today’s capital market pricing in mind. With currently available financing options, the cash-on-cash return should be approximately 7.3% at the asking price. There is also potential for a new owner to add value by leasing up one remaining vacant space, a 1,778 square foot unit. Once leased at a market rent of $14.00 per square foot, the pro forma CAP rate will increase to 8.93%, with a leveraged return of 11.11%. The demographics in the immediate area are outstanding, with average household incomes within a 1-mile radius exceeding $140,000 per year. Total average retail expenditures per household exceed $167,000 annually, within that same radius. Please reach out to Marcus & Millichap with additional questions about this opportunity.

Investment Highlights

  • All-Brick Retail Center Shadow Anchored by a Martin's Grocery Store | Located in a Wealthy Community near The University of Notre Dame
  • Brand New 10YR Lease to Dunkin' Donuts – Equipped with a Drive-Thru
  • Positioned at a Signalized Intersection | Featuring Multiple Access Points
  • Priced Below Replacement Cost at $165/sf
  • Value-Add Opportunity | Leasing the One Remaining Vacant Space Pushes the Cash Flow Above 11%
  • Average Household Incomes Exceed $140,000 Per Year Within a 1-Mile Radius

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s) IN: RB14034355

    Indiana

Financing By

Shopping Strip

Drive-Thru Dunkin' Retail Center

Listing Price: $2,900,000

Cap Rate
7.60%
Gross SF
17,539
Rentable SF
17,539
Price/Gross SF
$165.35
Lot Size
5.24 acres
Year Built
1998

Investment Highlights

  • All-Brick Retail Center Shadow Anchored by a Martin's Grocery Store | Located in a Wealthy Community near The University of Notre Dame
  • Brand New 10YR Lease to Dunkin' Donuts – Equipped with a Drive-Thru
  • Positioned at a Signalized Intersection | Featuring Multiple Access Points
  • Priced Below Replacement Cost at $165/sf
  • Value-Add Opportunity | Leasing the One Remaining Vacant Space Pushes the Cash Flow Above 11%
  • Average Household Incomes Exceed $140,000 Per Year Within a 1-Mile Radius

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in Granger Station, a 17,539 square foot, all-brick, multi-tenant retail center located just outside South Bend, Indiana (home to the University of Notre Dame) in the town of Granger. Positioned at a signalized intersection, Granger Station is visible to nearly 20,000 vehicles per day, and benefits from multiple points of ingress and egress. The property is shadow anchored by a 90,000 square foot Martin’s Grocery Store, the dominant grocer in the region (owned by SpartanNash – a Fortune 400 company), and benefits from this important traffic driver. There is also a McDonald’s located on an outpad to this shopping center, as well as an Ace Hardware. Dunkin’ Donuts just signed a new 10-Year NNN lease on the endcap unit, equipped with a drive-thru. The other major tenant is ATI Physical Therapy, with over 5 years remaining on their lease. The Weighted Average Lease Term (WALT) across the rent roll is 4.84 years. Offered free and clear of existing debt and priced at a 7.6% CAP rate, Granger Station is priced to achieve attractive leveraged returns, with today’s capital market pricing in mind. With currently available financing options, the cash-on-cash return should be approximately 7.3% at the asking price. There is also potential for a new owner to add value by leasing up one remaining vacant space, a 1,778 square foot unit. Once leased at a market rent of $14.00 per square foot, the pro forma CAP rate will increase to 8.93%, with a leveraged return of 11.11%. The demographics in the immediate area are outstanding, with average household incomes within a 1-mile radius exceeding $140,000 per year. Total average retail expenditures per household exceed $167,000 annually, within that same radius. Please reach out to Marcus & Millichap with additional questions about this opportunity.

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s): IN: RB14034355

    Indiana

Financing By

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