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Hanley Investment Group Real Estate Advisors arranged the sale of a newly constructed, single-tenant McDonald’s ground lease at Southern Dunes Commons at Wellingshire in Indianapolis, Indiana. The transaction involved a brand new ground lease location for McDonald’s within a mixed-use development, adding a high-profile quick-service restaurant to the property lineup at Southern Dunes Commons at Wellingshire.
The ground lease sold for $1.95 million to a private 1031 exchange investor based in Northern California. According to the parties involved, the sale price reflects a 4.10% capitalization rate for the asset. The transaction structure allowed the buyer to complete a 1031 exchange while acquiring an income-producing, single-tenant, net-leased property backed by a nationally recognized restaurant brand.
Hanley Investment Group’s Executive Vice President Dylan Mallory, working in association with ParaSell, Inc., represented the sellers, identified as Wellingshire Partners LLC and Midland Atlantic Properties, Inc. On the buy-side, the private investor was represented by Mehdi Star of Net Lease Exchange, a firm based in the San Francisco Bay Area. The representation on both sides underscores the involvement of multiple specialized net-lease advisory platforms in completing the sale.
The McDonald’s ground lease is located at 2326 West Southport Road Drive in Indianapolis and is part of the Southern Dunes Commons at Wellingshire development. The property is positioned directly off Interstate 69, providing visibility and access from a regional transportation corridor. The surrounding project is described as a new mixed-use development, with the McDonald’s site integrated into the broader commercial setting at Southern Dunes Commons at Wellingshire.
The lease structure for the property is a new 20-year absolute triple-net ground lease that is corporate-guaranteed by McDonald’s Corporation. Under this structure, the tenant is responsible for property expenses as defined in the absolute triple-net arrangement, and the lease is secured by the corporate credit of McDonald’s Corporation. The combination of a long lease term, ground lease structure, and corporate guarantee was central to the investment profile of the asset acquired by the private 1031 exchange investor.
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