Restaurant Building with Monument
For Sale
$685,000
5527 N Keystone Avenue, Indianapolis, IN 46220
Commercial Sale, Indianapolis, IN
Property Size1,795 SF
Lot Size0.30 Acres
Price / SF$381.62
Days on Market94
Property Features for 5527 N Keystone Avenue
General Information
Property type
Residential
Property subtype
Retail
Zoning
Retail
Elementary school district
Indianapolis Public Schools
Middle school district
Indianapolis Public Schools
High school district
Indianapolis Public Schools
Directions
GPS Friendly
Subdivision
4903 - Marion - Washington
Standard status
Active
APN
490708103006000801
Lot size
0.30 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
Andrew F Fromholds Sub B7 Pt L2 & L3 Beg Se Corl3; W155' N83' E155' S83' To Beg
Legal Description
Andrew F Fromholds Sub B7 Pt L2 & L3 Beg Se Corl3; W155' N83' E155' S83' To Beg
Building Details
Year built
1960
Floors in Building
1
Listing Agency:
eXp Realty, LLC
(888) 611-3912
Listed By:
Glenn Bill · License #RB14015601
(888) 611-3912
Added: May 27
Changed: Aug 28
Last Checked: Aug 28 at 9:06PM
MLS# 22103728
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 conventional restaurant property is configured for food-service use and includes existing restaurant infrastructure, a flexible interior layout, dedicated parking, and a large monument sign. Improvements include a new roof completed in 2023, a new parking lot completed in 2023, a new RTU installed in 2024, an interior buildout completed in 2023, and a dumpster enclosure added in 2025. The property is zoned Retail and occupies approximately 0.3 acres.
Located at 5527 N Keystone Avenue near 56th Street in Indianapolis, the site has signalized access and exposure along the Keystone Avenue retail corridor. It sits between Subway and Wendy's and across from Meijer Super center. The current tenant has a 10-year lease, and the site offers potential adaptability for drive-through use.
Located at 5527 N Keystone Avenue near 56th Street in Indianapolis, the site has signalized access and exposure along the Keystone Avenue retail corridor. It sits between Subway and Wendy's and across from Meijer Super center. The current tenant has a 10-year lease, and the site offers potential adaptability for drive-through use.
Key Highlights
- Restaurant‑configured property at 5527 N Keystone Avenue, Indianapolis, IN 46220
- Approximately 0.3 acres with dedicated parking and signalized access
- New roof and parking lot completed in 2023
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
$22,415
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
3.27%
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%
$448,300
$448.3K
Cap Rate 7%
$320,214
$320.2K
Cap Rate 9%
$249,056
$249.1K
Market Conditions
NOI Build-Up for 1,795 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
$32.3K $18.00/SF
− Vacancy
−$2.4K −$1.35/SF
EGI
$29.9K $16.65/SF
− OpEx
−$7.5K −$4.16/SF
NOI
$22.4K $12.49/SF
Area
Indianapolis, IN
Vacancy
7.50%
Lease Rate
$18.00 /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%
$448,300
Cap Rate 7%
$320,214
Cap Rate 9%
$249,056
Alternative Uses
Best Use
Specialty Retail
$320.2K
$280.2K – $373.6K
NOI $22,415 @ 7.0% cap · market cap 3.27%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$446.8K
$391.0K – $521.3K
NOI $31,276 @ 7.0% cap · market cap 4.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
791
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 46220, IN
36,078
Population
17,524
Households
2.1
Avg Household Size
37
Median Age
67%
College-Educated
98%
High-School Grad
11.7 sq mi
ZIP Area
3,084
Density / Sq Mi
$103,735
Median Household Income
$58,867
Median Earnings
$1,330
Median Rent
$329,700
Median Home Value
Market
Vacancy Rate% for Retail in Indianapolis, IN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant-configured property with signalized access, dedicated parking, and a prominent roadside sign.
Where is this conventional restaurant located?
The property is located at 5527 N Keystone Avenue Indianapolis, IN.
What is the asking price?
The asking price for this property is $685,000.
What are key features of this property?
This property features: Restaurant‑configured property at 5527 N Keystone Avenue, Indianapolis, IN 46220; Approximately 0.3 acres with dedicated parking and signalized access; New roof and parking lot completed in 2023
