Gallelli Real Estate’s The Osborne Group has completed the sale of a single-tenant, triple-net ground lease of a CarMax Auto Superstore for $29 million. The two-building retail property totals about 55,536 square feet and is located within the Indianapolis submarket of Keystone Crossing in the city of Carmel, Indiana.
According to Robb Osborne, Partner at Gallelli Real Estate and Principal of The Osborne Group, the seller, MAX 22, LLC, was motivated to capitalize on the recent trajectory of the used car market with the sale of the asset, which hosts automobile sales, service and pre-sales reconditioning.
Osborne adds that his team was ultimately able to source Realty Income Corporation, a real estate investment trust that invests in free-standing, single-tenant commercial properties, who was well-versed in this product type.
CarMax, the nation’s largest used car dealer with more than 220 locations throughout the country, has occupied this property since 2004 and has 12 years remaining on its original lease.
Osborne said that this sale speaks to trends in the Indianapolis market, where demand for single-tenant net leased assets remain a key driver of activity: “Investors were increasingly active in 2021, with activity improving steadily from one quarter to the next. By year end, around $527 million in assets had traded, 38% above the 10-year annual average. Further, Carmel has been a particular focal point among retail investors in the metro, with the volume of annual sales averaging $23.6 million over the past five years.”
The CarMax Auto Superstore, at 9750 North Gray Road in Carmel, is in an auto mall setting with more than 21 national car brands including Bentley, Lexus and Porsche. It serves the affluent communities of Carmel, Fishers and Noblesville, with the city of Carmel averaging a household income of $112,765 coupled with impressive regional tech headquarters.
The property features an extensive campus with the main building showroom, a customer receiving bay, a service/repair shop with 17 hydraulic automatic lift bays, and a second building used for auto cleaning that houses an automated car washing system and a fuel dispenser.
