Downtown Indianapolis Restaurant
For Sale
Contact for pricing
42 W South St, Indianapolis, IN 46225
Turnkey restaurant for sale near Lucas Oil Stadium.
Property Size11,864 SF
Price / SF$164.36
Days on Market159
Property Features for 42 W South St
General Information
Standard status
Active
Size
11,864 SF
Property subtype
Retail, Office, Mixed Use, Special Purpose
Building Details
Stories
3
Listing Agency:
Midland Atlantic Properties - Indianapolis
(317) 597-1715
Listed By:
Shawn Heffern · License #IN
Source:
Crexi
Added: Mar 5
Changed: Aug 8
Last Checked: Aug 10 at 3:03PM
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 Midland Atlantic Properties - Indianapolis
Investment Insights
Based on property information with market context.
A restaurant opportunity is available for purchase in downtown Indianapolis, situated near Lucas Oil Stadium. The property encompasses 11,864 square feet and is suitable for restaurant, mixed-use, retail, and office purposes.
Key Highlights
- Turnkey Restaurant Opportunity
- Prime Downtown Indianapolis Location
- Steps Away From Lucas Oil Stadium
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
$156,640
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
8.03%
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%
$3,132,800
$3.1M
Cap Rate 7%
$2,237,714
$2.2M
Cap Rate 9%
$1,740,444
$1.7M
Market Conditions
NOI Build-Up for 11,864 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
$256.3K $21.60/SF
− Vacancy
−$47.4K −$4.00/SF
EGI
$208.9K $17.60/SF
− OpEx
−$52.2K −$4.40/SF
NOI
$156.6K $13.20/SF
Area
Indianapolis, IN
Vacancy
18.50%
Lease Rate
$21.60 /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%
$3,132,800
Cap Rate 7%
$2,237,714
Cap Rate 9%
$1,740,444
Alternative Uses
Best Use
Office B
$2.24M
$1.96M – $2.61M
NOI $156,640 @ 7.0% cap · market cap 8.03%
Second Best
Specialty Retail
$2.12M
$1.85M – $2.47M
NOI $148,152 @ 7.0% cap · market cap 7.60%
Theoretical Best
Office A
$2.95M
$2.58M – $3.45M
NOI $206,718 @ 7.0% cap · market cap 10.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,577
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 46225, IN
6,503
Population
3,056
Households
2.1
Avg Household Size
35
Median Age
29%
College-Educated
81%
High-School Grad
4.0 sq mi
ZIP Area
1,626
Density / Sq Mi
$47,917
Median Household Income
$36,132
Median Earnings
$1,104
Median Rent
$123,600
Median Home Value
Market
Vacancy Rate% for Office in Indianapolis, IN
Questions? Ask Rey
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Similar Off Market Nearby
- Centerplate — 100 S Capitol Ave, Indianapolis, IN 46225
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- Abundance Catering LLC — Indianapolis, IN 46204
- The Crane Bay Event Center — 551 W Merrill St, Indianapolis, IN 46225
Frequently Asked Questions
What type of property is this?
Restaurant - Turnkey restaurant for sale near Lucas Oil Stadium.
Where is this restaurant located?
The property is located at 42 W South St Indianapolis, IN.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: Turnkey Restaurant Opportunity; Prime Downtown Indianapolis Location; Steps Away From Lucas Oil Stadium
