Hanley Investment Group Real Estate Advisors arranged the sale of a new, single‑tenant McDonald’s ground lease at Southern Dunes Commons at Wellingshire in Indianapolis, Indiana.
The property sold to a private 1031 exchange investor based in Northern California for $1.95 million, representing a 4.10% cap rate, which CoStar reports is the lowest recorded cap rate for a single‑tenant McDonald’s sale in Indiana in the past 10 years.
Hanley Investment Group’s Executive Vice President Dylan Mallory, in association with ParaSell, Inc., represented the sellers, Wellingshire Partners LLC and Midland Atlantic Properties, Inc. The buyer was represented by Mehdi Star from Net Lease Exchange based in the San Francisco Bay Area.
According to CoStar, the 4.10% closing cap rate was 40 basis points below the 4.55% Midwest average for McDonald’s sales over the past 36 months.
Brand‑New McDonald’s Ground Lease in High‑Growth Corridor
The McDonald’s is located at 2326 West Southport Road Drive in Indianapolis and is part of Southern Dunes Commons at Wellingshire, a new mixed-use development positioned directly off Interstate 69. The property features a new 20-year absolute triple-net ground lease that is corporate-guaranteed by McDonald’s Corporation.
Built in 2025, the 3,780‑square‑foot McDonald’s sits on 1.61 acres and includes a double-drive‑thru, a format that consistently delivers higher sales than non–drive‑thru locations. The site benefits from exceptional visibility and exposure to more than 44,300 vehicles per day along I‑69.
Infrastructure, Development and Demographic Momentum
The property is strategically positioned within a rapidly expanding trade area supported by major infrastructure improvements. The recently completed I‑69 expansion added 35 miles of new lanes, 39 bridges and 15 underpasses/overpasses, significantly improving regional mobility and enhancing access to the site.
Southern Dunes Commons continues to experience meaningful development momentum, with McDonald’s, Taco Bell and Zaxby’s now open, along with additional single-tenant and multi-tenant retail planned as part of the next phase, including an express car wash. The development is approved for up to six restaurant and retail buildings and two hotels, with entitlements allowing up to 100,000 square feet of total retail space.
The trade area features 150,000 residents within five miles and an average household income exceeding $110,000 within three miles, reinforcing the site’s long-term viability for daily-needs retail.
Located just eight miles south of downtown Indianapolis, the site benefits from one of the region’s busiest commuter corridors. The Indianapolis metro area is home to more than 2 million residents, four Fortune 500 headquarters and a tourism sector that attracts 29.2 million annual visitors. The region also hosts major sporting events including the Indianapolis 500 and Brickyard 400, two of the largest single-day sporting events in the world.
