Hanley Investment Group Arranges Sale of Brand-New McDonald’s Ground Lease in Indianapolis for $1.95 Million to California 1031 Exchange Buyer
INDIANAPOLIS — Hanley Investment Group Real Estate Advisors, a nationally recognized retail investment advisory firm specializing in the sale of retail properties, announced today that the firm has arranged the sale of a brand‑new, single-tenant McDonald’s ground lease at Southern Dunes Commons at Wellingshire in Indianapolis, Indiana. The property sold to a private 1031 exchange investor based in Northern California for $1.95 million, representing a 4.10% cap rate, which CoStar reports is the lowest recorded for a single‑tenant McDonald’s sale in Indiana in the past 10 years.
Hanley Investment Group’s Executive Vice President Dylan Mallory, in association with ParaSell, Inc., represented the sellers, Wellingshire Partners LLC and Midland Atlantic Properties, Inc. The buyer was represented by Mehdi Star from Net Lease Exchange based in the San Francisco Bay Area.
“We generated a substantial number of competitive offers within the first two weeks of marketing,” Mallory said. “We secured a qualified private 1031 exchange buyer from Northern California through an existing broker relationship, to facilitate a quick 30-day total escrow, providing the seller with strong execution certainty.”
According to CoStar, the 4.10% closing cap rate was 40 basis points below the 4.55% Midwest average for McDonald’s sales over the past 36 months.
“Low-rent ground leases like this remain highly sought after today, as investors look for security not only in the strength of the tenant but in the replaceability of rent if the tenant were ever to leave,” Mallory added.
Brand‑New McDonald’s Ground Lease in High-Growth Corridor
The McDonald’s is located at 2326 West Southport Road Drive in Indianapolis and is part of Southern Dunes Commons at Wellingshire, a new mixed-use development positioned directly off Interstate 69. The property features a new 20-year absolute triple-net ground lease that is corporate-guaranteed by McDonald’s Corporation.
Built in 2025, the 3,780-square-foot McDonald’s sits on 1.61 acres and includes a double-drive-thru, a format that consistently delivers higher sales than non-drive-thru locations. The site benefits from exceptional visibility and exposure to more than 44,300 vehicles per day along I-69.
McDonald’s (NYSE: MCD; S&P: BBB+), the world’s leading quick-service restaurant brand, operates more than 42,000 restaurants worldwide and has appeared on the Fortune 500 list for 60 consecutive years. In the U.S., McDonald’s posted a 6.8% increase in comparable sales in the fourth quarter of 2025, underscoring continued domestic strength and customer demand. The company is also expanding deeper into the fast-growing beverage category, introducing new cold coffees, crafted sodas and energy-style drinks aimed at boosting visits and capturing younger consumers.
Infrastructure, Development and Demographic Momentum
The property is strategically positioned within a rapidly expanding trade area supported by major infrastructure improvements. The recently completed I-69 expansion added 35 miles of new lanes, 39 bridges and 15 underpasses/overpasses, significantly improving regional mobility and enhancing access to the site.
Southern Dunes Commons continues to experience meaningful development momentum, with McDonald’s, Taco Bell and Zaxby’s now open, along with additional single-tenant and multi-tenant retail planned as part of the next phase, including an express car wash. The development is approved for up to six restaurant and retail buildings and two hotels, with entitlements allowing up to 100,000 square feet of total retail space.
According to Mallory, Southern Dunes Commons is part of the broader Southern Dunes planned development and helps address a long-standing “service desert” on the west side of the new I-69 interchange by providing much-needed dining and hospitality options for both local residents and interstate travelers. The surrounding area includes three newly developed luxury apartment communities — Southern Dunes (380 units), Aspen Lakes Apartments (322 units) and Lighthouse Landing (more than 1,300 one- and two-bedroom residences) — creating strong residential density and consistent customer demand.
The trade area features 150,000 residents within five miles and an average household income exceeding $110,000 within three miles, reinforcing the site’s long-term viability for daily-needs retail.
Located just eight miles south of downtown Indianapolis, the site benefits from one of the region’s busiest commuter corridors. The Indianapolis metro area is home to more than 2 million residents, four Fortune 500 headquarters and a tourism sector that attracts 29.2 million annual visitors. The region also hosts major sporting events including the Indianapolis 500 and Brickyard 400, two of the largest single-day sporting events in the world.
Last month, Hanley Investment Group, in association with ParaSell, Inc., also arranged the sale of the new 15-year ground lease for the adjacent Taco Bell drive-thru at 2316 Southport Commons Drive. Mallory noted that the firm generated nearly 10 offers during the marketing process and selected an all-cash, San Diego-based 1031 exchange buyer.
“Hanley Investment Group has closed more than $1.22 billion in Midwest retail property sales over the past five years, including $184 million in Indiana, reflecting investors’ strong appetite for essential‑service and drive-thru assets in the region,” Mallory said. “We expect investor demand for long-term ground leases with low rents to remain strong as construction costs increase.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $12.6 billion transaction track record specializing in the sale of retail properties nationwide. The firm’s expertise, proven track record spanning more than 20 years, and dedication to putting clients’ needs first set it apart in the industry. Hanley Investment Group creates value by delivering exceptional results through property-specific marketing strategies, cutting-edge technology and local market knowledge. Hanley Investment Group’s relationships with investors, developers, institutions, franchisees, brokers and 1031 exchange buyers translate into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestmentgroup.com.
Media Contact
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Dylan Mallory, Executive Vice President
Email: Send Email
Phone: 949.585.7678
Address:3500 East Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: https://hanleyinvestmentgroup.com/
