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Shopping Community

Ross & Dollar Tree Anchored Retail | Walmart Shadow

1105 5th Ave, Hammond, IN 46320

Listing Price: $8,125,000

Cap Rate
8.10%
Gross SF
52,500
Rentable SF
52,500
Price/Gross SF
$154.76
Lot Size
5.30 acres
Year Built
2017

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a Ross Dress for Less and Dollar Tree Anchored Retail Center located in Hammond, Indiana. Shadow anchored by a high-volume Walmart and located less than one mile from Caesar’s Horseshoe Hammond Casino, this retail center has a stable rent roll with over five years of Weighted Average Lease Term, and 64 percent of the GLA is backed by investment grade credit. The property is surrounded by numerous trucking and logistics hubs, and it’s visible to over 64,000 vehicles per day from both Indianapolis Boulevard (41) and I-90. The on and off ramp to the Chicago Skyway is 1.5 miles away. The Hammond Horseshoe Casino is by far the highest volume casino in Indiana and is visible from this property’s parking lot. The rent roll is stabilized with over five years of lease term remaining across the rent roll, meaning that a new owner has predictable cash flow over their first five years of ownership. Rainbow just availed themselves of a five-year renewal option and took a significant bump in their rent. All leases are NNN with standard market caps on the amount reimbursements for CAM charges can increase annually in two of the leases. Slippage in expense reimbursements is minimal and the returns at asking price are significantly higher than those achievable in comparable retail properties. At list price, the property will yield a cash-on-cash return of just under 12 percent. There are strong synergies between these tenants, as well as with the adjacent Walmart and Hammond Marina entertainment district. Both this Ross location, as well as the adjacent Walmart, are top tier locations for both companies in the state of Indiana. Per Placer analytics, this Ross location is the third most visited Ross in the state of Indiana (out of 16 total locations), while the adjacent Walmart is the fourth most visited Walmart location in the state. This is an outstanding opportunity for investors seeking a high yield retail property with a substantial percentage of national credit tenants. Please reach out to Marcus & Millichap with additional questions about this Ross & Dollar Tree Anchored Retail Center.

Investment Highlights

  • Over Five Years of Weighted Average Lease Term (WALT)
  • 2016 Construction Priced at $147 Per Square Foot
  • Priced at or Below Replacement Cost
  • 64 Percent of the GLA is Backed by Investment Grade Credit
  • Ross Has an S&P Credit Rating of BBB+, While Dollar Tree Has an S&P Credit Rating of BBB
  • Double Digit Returns Achievable Even with Low Leverage Points
  • 11.68 Percent Cash on Cash Return at List Price
  • Surrounded by Strong Traffic Drivers | Shadow-Anchored by a High-Performing Walmart

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s) IN: RB14034355

    Indiana

Financing By

Shopping Community

Ross & Dollar Tree Anchored Retail | Walmart Shadow

Listing Price: $8,125,000

Cap Rate
8.10%
Gross SF
52,500
Rentable SF
52,500
Price/Gross SF
$154.76
Lot Size
5.30 acres
Year Built
2017

Investment Highlights

  • Over Five Years of Weighted Average Lease Term (WALT)
  • 2016 Construction Priced at $147 Per Square Foot
  • Priced at or Below Replacement Cost
  • 64 Percent of the GLA is Backed by Investment Grade Credit
  • Ross Has an S&P Credit Rating of BBB+, While Dollar Tree Has an S&P Credit Rating of BBB
  • Double Digit Returns Achievable Even with Low Leverage Points
  • 11.68 Percent Cash on Cash Return at List Price
  • Surrounded by Strong Traffic Drivers | Shadow-Anchored by a High-Performing Walmart

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a Ross Dress for Less and Dollar Tree Anchored Retail Center located in Hammond, Indiana. Shadow anchored by a high-volume Walmart and located less than one mile from Caesar’s Horseshoe Hammond Casino, this retail center has a stable rent roll with over five years of Weighted Average Lease Term, and 64 percent of the GLA is backed by investment grade credit. The property is surrounded by numerous trucking and logistics hubs, and it’s visible to over 64,000 vehicles per day from both Indianapolis Boulevard (41) and I-90. The on and off ramp to the Chicago Skyway is 1.5 miles away. The Hammond Horseshoe Casino is by far the highest volume casino in Indiana and is visible from this property’s parking lot. The rent roll is stabilized with over five years of lease term remaining across the rent roll, meaning that a new owner has predictable cash flow over their first five years of ownership. Rainbow just availed themselves of a five-year renewal option and took a significant bump in their rent. All leases are NNN with standard market caps on the amount reimbursements for CAM charges can increase annually in two of the leases. Slippage in expense reimbursements is minimal and the returns at asking price are significantly higher than those achievable in comparable retail properties. At list price, the property will yield a cash-on-cash return of just under 12 percent. There are strong synergies between these tenants, as well as with the adjacent Walmart and Hammond Marina entertainment district. Both this Ross location, as well as the adjacent Walmart, are top tier locations for both companies in the state of Indiana. Per Placer analytics, this Ross location is the third most visited Ross in the state of Indiana (out of 16 total locations), while the adjacent Walmart is the fourth most visited Walmart location in the state. This is an outstanding opportunity for investors seeking a high yield retail property with a substantial percentage of national credit tenants. Please reach out to Marcus & Millichap with additional questions about this Ross & Dollar Tree Anchored Retail Center.

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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