Kroger Plaza

Kroger Plaza
E. Michigan Road and State Road 44
Shelbyville (Indianapolis MSA), Indiana
For further information contact owner’s exclusive representatives
Carly Gallagher
(630) 261-6944
cgallagher@midamericagrp.com
Ben Wineman
Rick Drogosz
(A LICENSED IN REAL ESTATE BROKER)
(630) 954-7336
(630) 954-7339
bwineman@midamericagrp.com rdrogosz@midamericagrp.com
in cooperation with
Kroger Plaza offers a purchaser the opportunity to acquire a 100% leased community center
shadow anchored by Kroger in the Indianapolis bedroom community of Shelbyville, Indiana.
INVESTMENT CONSIDERATIONS
Mid-America Real Estate Corporation has been retained by the owner to sell the 100% fee simple interest in Kroger
Plaza located in Shelbyville (Indianapolis-Carmel MSA), Indiana, which is an excellent quality asset and an attractive
real estate investment based on the following attributes:
• Strong Tenant Line-Up – Kroger Plaza features an impressive
mix of national, regional, and local retailers with 100%
occupancy. Anchor tenants include Hallmark (4,600 SF),
Shoe Sensation (8,050 SF), and Buffalo Wild Wings (5,020
SF). Both Hallmark and Shoe Sensation have operated at the
center since 2000 and 2005, respectively. Also, Buffalo Wild
Wings recently signed a new lease to operate at the center for
a ten year term, contributing to Kroger Plaza’s stability as a
community staple.
• Dominant Shadow Anchor – Kroger, the dominant grocer in
Indiana and #1 grocer in the US, shadow-anchors the subject
property and provides substantial drawing power to the
shopping center.
• Steady Income Stream – Buffalo Wild Wings, which
represents 30% of the rental income of the property, has
a lease to operate at the center through the first quarter of
2023. Additionally, Shoe Sensation represents 26% of the
rental income of the property and has a lease to operate at the
center through February 2021. Overall, 58% of the GLA of
the center is leased through 2019. There is no tenant rollover
until February 2017, and the average weighted remaining
lease term at the center is 5.2 years.
• Excellent Visibility and Accessibility – The subject property
has five total points of ingress and egress via easement
agreements with the Kroger parcel: two along E. Michigan
Road and three along Saraina Road. Additionally, State Road
44 (19,212 VPD) and E. Michigan Road (4,498 VPD) converge
in front of Kroger Plaza, providing the subject property with
excellent visibility. Interstate 74, with over 30,000 vehicles
per day, is only one mile northeast of the subject property,
making Kroger Plaza more accessible to the residents of
surrounding communities.
• Stable Market – Shelbyville is an established bedroom
community within the Indianapolis-Carmel MSA, which is
home to approximately 2 million residents and the 33rd most
populous metropolitan area in the United States.
• Leveraged Yields – Kroger Plaza is being sold “free and
clear” of any existing debt, allowing a purchaser to procure an
attractive market rate loan.
LOCATION & MARKET
Shelbyville is located in Shelby County, Indiana, and is part of
the Indianapolis-Carmel MSA. Indianapolis is both the capital
of Indiana and the largest city in the state; in fact, Indianapolis
is the 12th largest city in the United States. It has a diverse
economy that has seen recent growth in the education,
healthcare, and financial services sectors. Additionally,
Indianapolis boasts a very low unemployment rate of 5.4%,
compared to the national average of 5.8% and 5.7% for the
state of Indiana overall.
Shelbyville is located 26 miles southeast of Indianapolis.
Shelbyville’s main retail corridor extends two miles along
State Road 44, starting at Interstate 74 in the east and ending at
State Road 9 in the west. Kroger Plaza has excellent visibility
where State Road 44 and E. Michigan Road converge. Notable
tenants in the trade area include Walmart Supercenter, Big
Lots, Aldi, Hibbett Sports, Walgreens, and Studio 10 Cinemas.
There are also several fast food restaurants near the subject
property that draw additional consumers to the site. Kroger
Plaza is essential for the residents of surrounding communities
because Shelbyville is the most developed and populous city
in the county.
Buffalo Wild Wings (5,020 SF). Both Hallmark and Shoe
Sensation have operated at the center since 2000 and 2005,
respectively; Great Clips has also operated at the center since
2000 and Buffalo Wild Wings recently signed a new lease
to operate at the center for a ten year term, contributing to
Kroger Plaza’s stability as a community staple. There is no
tenant rollover until February 2017, and the average weighted
remaining lease term at the center is 5.2 years. Overall, 58%
of the GLA of the center is leased through 2019, and six of the
seven tenants at the center have options to renew.
PRICING
Kroger Plaza offers a purchaser the opportunity to acquire
a fully leased community shopping center in the established
community of Shelbyville, Indiana, located within the
Indianapolis-Carmel MSA. The property is being offered
“free and clear” of any existing debt.
2015 “In-Place” Net Operating Income: $210,778
PROPERTY DESCRIPTION
The subject property is a community shopping center
that consists of 22,470 square feet of gross leasable area.
Constructed in 2004 and situated on 0.7 acres, Kroger Plaza
contains one building with seven inline units that are connected
to the 62,000 SF Kroger unit, which is not included in the
subject offering but can be expanded by an additional 13,000
square feet. There is also a Kroger Fuel on site. The subject
property has five points of ingress and egress via easement
agreements with the Kroger parcel: two along E. Michigan
Road and three along Saraina Road. Additionally, Kroger both
owns and maintains the parking lot utilized by the tenants of
Kroger Plaza. Situated at the southwest corner of E. Michigan
Road and Saraina Road, Kroger Plaza also benefits from
additional traffic flow and visibility, as E. Michigan Road and
State Road 44 converge in front of the subject property.
TENANCY
Kroger Plaza is fully leased and shadow anchored by
Kroger. Solid anchor tenants included in the subject offering
are Hallmark (4,600 SF), Shoe Sensation (8,050 SF), and
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information.
References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
For further information
exclusive representatives.
contact
owner’s
CARLY GALLAGHER
(630) 261-6944
cgallagher@midamericagrp.com
BEN WINEMAN
(630) 954-7336
bwineman@midamericagrp.com
RICK DROGOSZ
(A LICENSED IN REAL ESTATE BROKER)
(630) 954-7339
rdrogosz@midamericagrp.com
in cooperation with
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