PetSmart NNN Lease
For Sale
Contact for pricing
5151 E 82nd St, Indianapolis, IN
Absolute NNN PetSmart with new 12-year lease in Castleton, IN.
Property Size26,290 SF
Lot Size31.98 Acres
Price / SF$298.06
Days on Market751
Property Features for 5151 E 82nd St
General Information
Standard status
Active
Size
26,290 SF
Lot size
31.98 Acres
Property subtype
RETAIL
Listing Agency:
Colliers
(949) 474-0707
Listed By:
Jereme Snyder
(949) 724-5552
Source:
Moodyscre
Added: Aug 22, 2024
Changed: Sep 9
Last Checked: Sep 11 at 9:46AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Colliers
Investment Insights
Based on property information with market context.
This property offers investors the opportunity to purchase a PetSmart location in Castleton, Indiana, operating at this location for 24 years. The tenant recently extended their lease for a new 12-year term. The roof was replaced in 2017 by the tenant. The property is strategically located between The Fashion Mall at Keystone, anchored by Nordstrom, and the Castleton Square Mall, the largest mall in the state with 1.1 million square feet. Situated on 82nd Street, a high-traffic commercial thoroughfare, the location benefits from an Average Annual Daily Traffic (AADT) count exceeding 86,300 at its intersection. The surrounding trade area is characterized by an affluent demographic, with a population of over 168,400 residents and an average household income exceeding $121,000. The property is located near retailers including Trader Joes, Whole Foods, Chick-fil-A, REI, Fresh Thyme Market, HomeGoods, Floor & Decor, The Container Store, Lifetime Fitness, PGA Tour Superstore, and Nordstrom Rack. The property is approximately 26,290 square feet.
Key Highlights
- Absolute NNN Lease with PetSmart, offering a passive investment opportunity
- New 12‑year lease term extension, providing long‑term stability
- 24‑year operating history at this location, demonstrating strong performance
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
$282,891
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
3.61%
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%
$5,657,820
$5.7M
Cap Rate 7%
$4,041,300
$4.0M
Cap Rate 9%
$3,143,233
$3.1M
Market Conditions
NOI Build-Up for 26,290 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
$441.7K $16.80/SF
− Vacancy
−$37.5K −$1.43/SF
EGI
$404.1K $15.37/SF
− OpEx
−$121.2K −$4.61/SF
NOI
$282.9K $10.76/SF
Area
Indianapolis, IN
Vacancy
8.50%
Lease Rate
$16.80 /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%
$5,657,820
Cap Rate 7%
$4,041,300
Cap Rate 9%
$3,143,233
Alternative Uses
Best Use
Retail
$4.04M
$3.54M – $4.71M
NOI $282,891 @ 7.0% cap · market cap 3.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.54M
$5.73M – $7.63M
NOI $458,077 @ 7.0% cap · market cap 5.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
796
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Market
Vacancy Rate% for Retail in Indianapolis, IN
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Frequently Asked Questions
What type of property is this?
Retail space - Absolute NNN PetSmart with new 12-year lease in Castleton, IN.
Where is this retail space located?
The property is located at 5151 E 82nd St Indianapolis, IN.
What is the asking price?
The asking price for this property is $7,836,000.
What are key features of this property?
This property features: Absolute NNN Lease with PetSmart, offering a passive investment opportunity; New 12‑year lease term extension, providing long‑term stability; 24‑year operating history at this location, demonstrating strong performance
