Hanley Investment Group Arranges $1.9 Million Sale of Ground Lease in Indianapolis

Why It Matters

The deal highlights strong investor demand for corporate‑guaranteed net‑lease assets and reinforces Indianapolis’s appeal as a growing mixed‑use market.

Key Takeaways

• $1.9M ground lease sold for McDonald’s 3,780‑sq ft location.
• Lease is 20‑year absolute triple‑net, corporate guaranteed.
• Southern Dunes Commons spans 19 acres, up to 100k sq ft.
• Center already hosts McDonald’s, Taco Bell, Zaxby’s.
• Transaction highlights appetite for net‑lease investments in mid‑west.

Pulse Analysis

The $1.9 million ground‑lease transaction underscores the resilience of the corporate‑guaranteed net‑lease sector, a segment that has attracted institutional capital seeking stable, inflation‑linked returns. By locking in a 20‑year absolute triple‑net lease, the McDonald’s tenant assumes all property‑related expenses, leaving the landlord with predictable cash flow. Such structures have become a hedge against market volatility, especially as investors diversify away from traditional office assets. Hanley Investment Group’s involvement signals its confidence in the asset class and its ability to source high‑quality, long‑term tenants.

Southern Dunes Commons, a 19‑acre mixed‑use campus in Indianapolis, is positioned to become a regional dining and hospitality hub. The development plan permits up to six restaurant or retail buildings and two hotels, totaling roughly 100,000 square feet of leasable space. With McDonald’s, Taco Bell and Zaxby’s already operating, the center benefits from immediate foot traffic and brand recognition, which can accelerate leasing of the remaining parcels. The project aligns with Indianapolis’s broader economic expansion, driven by population growth and a diversified employment base.

For investors, the deal illustrates the growing appetite for net‑lease properties in secondary markets like the Midwest, where acquisition costs remain attractive compared with coastal metros. The corporate guarantee from McDonald’s reduces credit risk, making the asset suitable for pension funds and REITs seeking low‑volatility income. Hanley’s partnership with brokers such as ParaSell and Net Lease Exchange demonstrates a collaborative approach that can expedite transactions and broaden the buyer pool. As demand for triple‑net leases rises, similar ground‑lease opportunities are likely to emerge across emerging urban corridors.