Freestanding Day Care
For Sale
$338,000
Pending
5040 E Thompson Road, Indianapolis, IN 46237
Commercial Sale, Indianapolis, IN
Property Size1,950 SF
Lot Size0.27 Acres
Days on Market37
Property Features for 5040 E Thompson Road
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning
C-4
Parking features
Assigned
Elementary school
Hornet Park Elementary School
Middle school
Beech Grove Middle School
High school
Beech Grove Sr High School
Elementary school district
Beech Grove City Schools
Middle school district
Beech Grove City Schools
High school district
Beech Grove City Schools
Directions
GPS Friendly
Subdivision
4907 - Marion - Perry
Standard status
Pending
APN
491033135020000502
Lot size
0.27 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
Pt Se1/4 S33 T15 R4 Beg 170' W & 49.21' Nof Se Cor W 80' N 147.17' E 80' S 147.17' To Beg.270 Ac
Tax Annual Amount
3736
Legal Description
Pt Se1/4 S33 T15 R4 Beg 170' W & 49.21' Nof Se Cor W 80' N 147.17' E 80' S 147.17' To Beg.270 Ac
Amenities
fenced outdoor play yard
Building Details
Year built
1973
Floors in Building
1
Roof type
Built-Up
Listing Agency:
Keller Williams Indy Metro NE · Keller Williams Realty
(317) 564-7100
Listed By:
Sharon Stamper Thompson · License ##RB14044406
(317) 607-0884
Added: Jul 31
Changed: Sep 4
Last Checked: Sep 5 at 6:06PM
MLS# 22117377
Copyright © 2026 Broker Listing Cooperative®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This freestanding day care facility occupies a 0.27-acre site at 5040 E Thompson Road. The property includes a fenced outdoor play yard along the side and rear of the building, assigned parking, company signage, and a built-up roof. Constructed in 1973, the building was previously used by a daycare operator.
C-4 zoning supports childcare and preschool operations as well as retail, medical, office, pet services, and other neighborhood-oriented businesses. The property is positioned near I-465 and I-69 in Indianapolis, with surrounding residential development providing a nearby customer base. A Clear Channel billboard lease provides an additional income component for an owner-user or investor.
C-4 zoning supports childcare and preschool operations as well as retail, medical, office, pet services, and other neighborhood-oriented businesses. The property is positioned near I-465 and I-69 in Indianapolis, with surrounding residential development providing a nearby customer base. A Clear Channel billboard lease provides an additional income component for an owner-user or investor.
Key Highlights
- 0.27‑acre site at 5040 E Thompson Road, Indianapolis, IN 46237
- C‑4 zoning supports childcare, retail, medical, office, pet services, and other neighborhood businesses
- Fenced outdoor side and rear play yard
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$20,278
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.00%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$405,560
$405.6K
Cap Rate 7%
$289,686
$289.7K
Cap Rate 9%
$225,311
$225.3K
Market Conditions
NOI Build-Up for 1,950 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$31.6K $16.20/SF
− Vacancy
−$2.6K −$1.34/SF
EGI
$29.0K $14.86/SF
− OpEx
−$8.7K −$4.46/SF
NOI
$20.3K $10.40/SF
Area
ZIP 46237
Vacancy
8.30%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$405,560
Cap Rate 7%
$289,686
Cap Rate 9%
$225,311
Alternative Uses
Best Use
Retail
$289.7K
$253.5K – $338.0K
NOI $20,278 @ 7.0% cap · market cap 6.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$459.4K
$402.0K – $536.0K
NOI $32,157 @ 7.0% cap · market cap 9.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
595
Businesses Nearby
262k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 48%
Dining 27%
Shops & Services 22%
Electronics 2%
Walmart
Superstores
125,949 visits/mo
0.3 miles
Speedway
Shops & Services
24,115 visits/mo
0.5 miles
Murphy USA
Shops & Services
18,617 visits/mo
0.3 miles
White Castle
Dining
17,990 visits/mo
0.4 miles
7 Brew Coffee
Dining
14,528 visits/mo
0.5 miles
Demographics for 46237, IN
44,378
Population
17,660
Households
2.5
Avg Household Size
36
Median Age
34%
College-Educated
89%
High-School Grad
14.7 sq mi
ZIP Area
3,019
Density / Sq Mi
$76,676
Median Household Income
$47,742
Median Earnings
$1,272
Median Rent
$216,300
Median Home Value
Market
Vacancy Rate% for Retail in Indianapolis, IN
Questions? Ask Rey
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Similar Off Market Nearby
- Edgewood Preschool Cooperative — 4700 Shelbyville Rd, Indianapolis, IN 46237
- Kid City USA BeechGrove — 4545 Independence Square, Indianapolis, IN 46203
Frequently Asked Questions
What type of property is this?
Day care center - C-4-zoned facility with a fenced outdoor play area and flexibility for neighborhood-serving commercial uses.
Where is this day care center located?
The property is located at 5040 E Thompson Road Indianapolis, IN.
What is the asking price?
The asking price for this property is $338,000.
What are key features of this property?
This property features: 0.27‑acre site at 5040 E Thompson Road, Indianapolis, IN 46237; C‑4 zoning supports childcare, retail, medical, office, pet services, and other neighborhood businesses; Fenced outdoor side and rear play yard
