Chili's Restaurant with NNN
New
For Sale
$2,528,909
2299 N Morton St, Franklin, IN 46131
Occupied by Chili’s under a triple-net ground lease with renewal options.
Property Size5,856 SF
Price / SF$431.85
Days on Market4
Property Features for 2299 N Morton St
General Information
Standard status
Active
Size
5,856 SF
Property subtype
Restaurant
Amenities
Over Four Years Remaining on NNN Ground Lease
10 Percent Rent Increase in Each of Four Five-Year Renewal Options
Generous 1.56-Acre Outpad in Lowe's-Anchored Retail Center Along 27,300+ AADT U.S. Route 31
Strong Local Manufacturing Economy With 700-Employee KYB, 298-Employee Caterpillar, 260-Employee NSK and 250-Employee Grayson
Located 25.7 Miles South of Downtown Indianapolis in the 2,205,695-Person Indianapolis-Carmel-Greenwood, IN, Metro Area
Corporately Guaranteed by Brinker International Inc. (NYSE: EAT), Which Reported $5.8 Billion in Annual Sales Revenue at the End of 4Q FY26
Building Details
Building Size
5,856 SF
Listing Agency:
Marcus & Millichap - Chicago Downtown
(312) 327-5422
Listed By:
Nicholas Kanich · License #License(s): IL: 475.147401
(312) 327-5422
Source:
Marcusmillichap
Added: Aug 28
Changed: Aug 30
Last Checked: Aug 30 at 8:00PM
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 Marcus & Millichap - Chicago Downtown
Investment Insights
Based on property information with market context.
This 5,856-square-foot conventional restaurant at 2299 N Morton St features an operating Chili’s Grill & Bar location. The property is subject to a triple-net ground lease with more than four years remaining, followed by four five-year renewal options. Each option includes a 10 percent rent increase at commencement. Brinker Restaurant Corporation, a Brinker International subsidiary, is the tenant, and the lease is corporately guaranteed.
The restaurant occupies a 1.56-acre outpad within the U.S. Route 31 retail corridor, where traffic is reported at 27,300+ AADT. Lowe’s is the adjacent anchor, with a Walmart Supercenter north of the property and a Meijer supermarket across the corridor. Manufacturers including KYB, Caterpillar, Amcor Rigid Plastics, and DualTech are located south of the restaurant. Franklin is connected to Indianapolis, Greenwood, and Columbus through Interstate 65 and U.S. Route 31.
The restaurant occupies a 1.56-acre outpad within the U.S. Route 31 retail corridor, where traffic is reported at 27,300+ AADT. Lowe’s is the adjacent anchor, with a Walmart Supercenter north of the property and a Meijer supermarket across the corridor. Manufacturers including KYB, Caterpillar, Amcor Rigid Plastics, and DualTech are located south of the restaurant. Franklin is connected to Indianapolis, Greenwood, and Columbus through Interstate 65 and U.S. Route 31.
Key Highlights
- 5,856‑square‑foot Chili’s Grill & Bar restaurant at 2299 N Morton St
- 1.56‑acre outpad along the U.S. Route 31 retail corridor
- 27,300+ AADT reported on U.S. Route 31
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
$70,948
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
2.81%
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%
$1,418,960
$1.4M
Cap Rate 7%
$1,013,543
$1.0M
Cap Rate 9%
$788,311
$788.3K
Market Conditions
NOI Build-Up for 5,856 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
$99.8K $17.04/SF
− Vacancy
−$5.2K −$0.89/SF
EGI
$94.6K $16.15/SF
− OpEx
−$23.6K −$4.04/SF
NOI
$70.9K $12.12/SF
Area
Johnson County, IN
Vacancy
5.20%
Lease Rate
$17.04 /SF/Yr
Expense Ratio
25.00%
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%
$1,418,960
Cap Rate 7%
$1,013,543
Cap Rate 9%
$788,311
Alternative Uses
Best Use
Specialty Retail
$1.01M
$886.9K – $1.18M
NOI $70,948 @ 7.0% cap · market cap 2.81%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.48M
$1.29M – $1.72M
NOI $103,300 @ 7.0% cap · market cap 4.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
271
Businesses Nearby
1k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Enterprise Rent-A-Car
Shops & Services
1,039 visits/mo
0.5 miles
Demographics for 46131, IN
32,869
Population
13,151
Households
2.5
Avg Household Size
38
Median Age
25%
College-Educated
92%
High-School Grad
126.0 sq mi
ZIP Area
261
Density / Sq Mi
$81,914
Median Household Income
$44,797
Median Earnings
$1,114
Median Rent
$227,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- King Buffet — 2239 N Morton St F, Franklin, IN 46131
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Occupied by Chili’s under a triple-net ground lease with renewal options.
Where is this conventional restaurant located?
The property is located at 2299 N Morton St Franklin, IN.
What is the asking price?
The asking price for this property is $2,528,909.
What are key features of this property?
This property features: 5,856‑square‑foot Chili’s Grill & Bar restaurant at 2299 N Morton St; 1.56‑acre outpad along the U.S. Route 31 retail corridor; 27,300+ AADT reported on U.S. Route 31
