Indianapolis Industrial Investment
For Sale
$3,900,000
2121 Hillside Ave, Indianapolis, IN 46218
40,000 sq ft building on 5.5 acres with long-term tenant.
Property Size40,000 SF
Lot Size5.50 Acres
Price / SF$97.50
Days on Market806
Property Features for 2121 Hillside Ave
General Information
Standard status
Active
Size
40,000 SF
Lot size
5.50 Acres
Listing Agency:
United Real Estate Indpls
(317) 331-3364
Listed By:
Randall Reichmann · License #RB17001517
(317) 331-3364
Source:
Exprealty
Added: Jun 17, 2024
Changed: Aug 20
Last Checked: Aug 30 at 9:06PM
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 United Real Estate Indpls
Investment Insights
Based on property information with market context.
This 40,000 sq ft industrial building is situated on 5.5 acres near downtown Indianapolis. The property is currently leased to a financially strong manufacturing company with a 5-year lease and a 5-year extension option. The base rent is $20,833 per month, with a 3% annual increase. The tenant is responsible for insurance, while the landlord is responsible for the roof and taxes. The property includes over 1200 sq ft of heated and cooled office space with separate bathrooms. The site is completely fenced with chainlink. Previously an industrial dry-cleaning facility from the 1960s until 2003, the property was classified as a "Brownfield Site" and maintains a Sub-Slab Depressurization system. As of July 24, 2020, the IDEM indicated all corrective action was complete. The property has been meticulously maintained.
Key Highlights
- High‑value investment property with a long‑term lease in place.
- Financially strong tenant** with a 5‑year lease and a 5‑year extension option.
- Substantial monthly rental income of $20,833 with a 3% annual increase.
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
$199,399
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
5.11%
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%
$3,987,980
$4.0M
Cap Rate 7%
$2,848,557
$2.8M
Cap Rate 9%
$2,215,544
$2.2M
Market Conditions
NOI Build-Up for 40,000 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
$312.0K $7.80/SF
− Vacancy
−$27.1K −$0.68/SF
EGI
$284.9K $7.12/SF
− OpEx
−$85.5K −$2.14/SF
NOI
$199.4K $4.98/SF
Area
Indianapolis, IN
Vacancy
8.70%
Lease Rate
$7.80 /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%
$3,987,980
Cap Rate 7%
$2,848,557
Cap Rate 9%
$2,215,544
Alternative Uses
Best Use
Office B
$7.54M
$6.60M – $8.80M
NOI $528,120 @ 7.0% cap · market cap 13.54%
Second Best
Industrial
$2.85M
$2.49M – $3.32M
NOI $199,399 @ 7.0% cap · market cap 5.11%
Theoretical Best
Office A
$9.96M
$8.71M – $11.62M
NOI $696,960 @ 7.0% cap · market cap 17.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
434
Businesses Nearby
Explore this area
Business Placement
Demographics for 46218, IN
30,400
Population
15,343
Households
2
Avg Household Size
36
Median Age
11%
College-Educated
80%
High-School Grad
9.5 sq mi
ZIP Area
3,200
Density / Sq Mi
$34,635
Median Household Income
$29,745
Median Earnings
$1,056
Median Rent
$90,200
Median Home Value
Market
Vacancy Rate% for Office in Indianapolis, IN
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Industrial property - 40,000 sq ft building on 5.5 acres with long-term tenant.
Where is this industrial property located?
The property is located at 2121 Hillside Ave Indianapolis, IN.
What is the asking price?
The asking price for this property is $3,900,000.
What are key features of this property?
This property features: High‑value investment property with a long‑term lease in place.; Financially strong tenant** with a 5‑year lease and a 5‑year extension option.; Substantial monthly rental income of $20,833 with a 3% annual increase.
