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CARMEL, IN – Gallelli Real Estate’s The Osborne Group, a leading provider of commercial real estate
services in the greater Sacramento area, 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 approximately 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.  | | Kannon Kuhn |
“The
total supply of the used car market was up 27% in June compared to last year’s numbers, and
projections echo continued high demand,” explains Osborne, who represented
the seller in the transaction.
“Our client recognized the momentum of this
industry and decided to strategically sell at this time, while taking the
opportunity to diversify and reinvest the capital into a multifamily
portfolio.”
Osborne
adds that his team was ultimately able to source Realty Income Corporation
(NYSE: O), a real estate investment trust that invests in
free-standing, single-tenant commercial properties, who was well-versed in
this product type.  | | Alex Davenport |
“This
was a win-win transaction in which both parties were able to accomplish their
respective goals,” Osborne continues.
“As
an owner with over 11,200 long-term net lease properties throughout all 50
states, as well as a global presence, the buyer is well-versed in similar
ground lease projects and was comfortable with the leasing structure of the
deal, fostering a quality fit and smooth transaction.”
CarMax,
the nation’s largest and most profitable used car dealer with over 220
locations throughout the country, has occupied this property since 2004 and
has 12 years remaining on their original lease, notes Osborne.  | The CarMax Auto Superstore,
at 9750 North Gray Road
in Carmel, Indiana, off the
East 96th Street corridor |
Osborne adds 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.”
According to The
Osborne Group Associate Kannon Kuhn, who listed the property with
Osborne and local Carmel broker Alex
Davenport at Colliers International Indiana, this sale also demonstrates the team’s
capabilities to successfully market opportunities and complete transactions
within new regions.
“While
most of our activity is within greater Sacramento area, we were able to
strategically work with Alex to transact this property outside of our typical
market scope,” says Kuhn.
“We look forward to additional
collaboration and further opportunities to transact within dynamic and active
investment markets like Indianapolis, as well as other regions across the
country.”
The
CarMax Auto Superstore, located at 9750 North Gray Road in Carmel, Indiana,
off the East 96th Street corridor, is in an auto mall setting with over 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.
About The Osborne Group The Osborne Group, led by Robb Osborne, is a leading provider of commercial real estate
services to office users, owners and developers within the greater Sacramento
Area. Year-to-date, the Osborne Group has completed 21 lease
transactions and 19 sale transactions, valued at over $96 million of
commercial real estate.
Contacts:
Tess Hezlep / Elisabeth Manville
The Smart Agency, Inc.
(949)
438-6262
thezlep@thesmartagency.com
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