Property Picture

Price: $3,095,000
Property Type: Retail
Status: Sold
Address: 1605 E. Michigan Road
                  Shelbyville, IN  46176
CAP Rate: 8.01%
Square Feet: 22,470
Tenancy Type: Mixed
Lease Type: NNN

Short Description:
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in the 22,470 S.F., Kroger Grocery shadow anchored center located in Shelbyville, Indiana, a suburb of Indianapolis. The Kroger Plaza Shopping Center is being offered at a reduced price of $3,095,000, representing a 8.01% CAP and provides an investor the opportunity to acquire a stable center that includes many well-known recession proof retailers as well as alternative retail users, providing long-term stability. Additionally, the property offers minimal rollover with the 3 largest tenants in place through 2021. In fact, Pet Valu and Buffalo Wild Wings executed 10-Yr. original leases and have 8 years and 5 years of original lease term remaining. The current tenant roster includes most of the tenants on Triple Net (NNN) lease structures and several tenants that reimburse administrative and management fees. The asset’s tenant mix of tenured tenants, along with newer leases, provides comfort knowing that the tenants have the desire to be located at the center and in the market.

The center boasts a welcoming curb appeal with great visibility, excellent frontage and prominent pylon signage from E. Michigan Road and State Route 44 that converges directly in front of the center. The property also has easy access with five points of ingress and egress. Traffic counts surrounding the center are in upwards of 25,000 vehicles per day. Kroger Plaza is positioned in a growing market surrounded by an abundance of rooftops while also being positioned near other complimentary retailers and within just a couple of miles from some of the area’s largest employers. Knauf Insulation is Shelbyville’s largest employer and is located just 2 miles from the featured property and the company is the fastest growing insulation manufacturer in the world with manufacturing operations in Europe, Russia, UK in addition to the USA with annual sales revenue is in excess of $1.5 billion. Furthermore, Major Hospital (Major Health Partners, 4.5 miles) is a leading healthcare provider for patients from not only Shelby County, Indiana, but also from the southeastern part of the state, and Ryobi Die Casting (3 miles) offers Shelbyville facilities that include 2 die casting plants and a machining facility encompassing 560,000 sq. feet of manufacturing space. Other employers with a significant presence are Pilkington North America’s Shelbyville plant (3.5 miles), PK USA (4 miles, and O'Neal Steel (2 miles). Additionally, Shelbyville draws traffic to the Indiana Grand Racing (Indiana Downs) & Casino (8.5 miles), a Las Vegas-style gaming establishment that offers non-stop gaming action, award-winning dining venues and a wide array of entertainment options all under one roof. The 233,000 S.F. facility features nearly 2,200 high-tech slot machines and electronic table games. The center also benefits from being located in a suburb to the densely populated City of Indianapolis (approximately 26 miles). Much of the residential base in Shelbyville commutes to Indianapolis via I-74, located just 1 mile from the property with over 30,000 vehicles per day. The city being known as the Crossroads of America has a thriving economy that relies on trade, transportation, and utilities, professional and business services, education and health services, government, retail trade, leisure and hospitality, and manufacturing. Being positioned just outside Dayton with the diverse mix of uses, services and staggered lease terms; the asset is well insulated for possible shifts in consumer retail demands and trends and will be a quality asset for many years to come.