This Retail Property is Off-Market.

146th Street & Hazel Dell Parkway
Noblesville, IN 46062 ·

3,500 SF · Retail For Sale

N/A

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Regions Bank

Price N/A Occupancy 100%
Building Size 3,500 SF Tenancy Single
Property Type Retail Property on Ground Lease? Yes
Property Sub-type Retail (Other) Year Built 2007
Property Use Type Net Lease Investment with 10+ years left on lease Lot Size 0.70 AC
Cap Rate 5.75%
Listing ID: 15319864 Date Created: 09/04/2007 Last Updated: 03/12/2008

Description

The Opportunity is to acquire an extremely low risk, long-term Regions Bank corporate guaranteed ground lease. Commencing in January 2007 for a term of 15 years, Regions Financial Corporation is obligated to pay rent until December 2021. Upon that time, the tenant has four, 10-year renewal options. In each of the option periods, base rent is scheduled to increase nine percent to hedge inflation and for steady appreciation. With a self-amortizing loan, an investor can own the property free and clear by the end of the lease term. In addition, due to the absolute NNN lease, this is a completely passive investment. All maintenance and repairs of interior, exterior, structural, nonstructural are the tenant' s responsibility.

Ground leases offer no management involvement and generally furnish an income stream that behaves like a finite annuity. For this reason experienced leased-fee owners are keen on setting periodic increases in ground rent not only to preserve an investment' s present value in the event of a sale, but also to provide an annuity that keeps pace with inflation and thereby preserves the purchasing power parity of the lessor' s rental dollar.

The Subject Property is a 3,500 square foot Regions Bank located in the upper-middle class, northern Indianapolis suburb of Noblesville, Indiana. Noblesville is located in Hamilton County which is known as one of the fastest growing counties in the nation. According to 2007 estimates by the US Census, the County's population jumped from an estimated 182,740 in 2000 to 250,979 in 2006. In 2006, Hamilton County was the 18th fastest growing county in the nation based on census estimates between 2000 and 2005.

The subject property resides on the northeast corner at the intersection of Hazel Dell Parkway and 146th Street, which generates strong traffic counts for retailers and service providers; 34,336 cars/day on 146th Street and 15,064 cars/day on Hazel Dell Parkway. The subject is only three miles east of US Highway 31 and three and a half miles west of State Highway 37. US Highway 31 is a major American north-south artery connecting northern Michigan to southern Alabama. In addition, this outlot is a portion of Noble West' s 680 acre mixed-use development which will include 470,000 square feet of office and medical space, 1,600 single family homes and a new elementary school.

Highlights

  • National Credit Tenant: Regions Bank (NYSE: RF)
  • Passive Investment Due to Absolute NNN Lease
  • Scheduled Base Rent Increases
  • High-End, Class A Construction (2006)
  • Outlot to Noble West Shoppes Class A Lifestyle Center (Kroger Anchor)
  • 135,666 People | $98,460 Average Income (5 Miles)

Research

146th Street & Hazel Dell Parkway, Noblesville, IN 46062 (Hamilton County)

Property Record Data - Historical Listings, current tax, mortgage, owners & tenant info for this property

Noblesville Market Trends - Asking price index trends, sale price trends, asking rent trends

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