NNN Leased Restaurant Investment
For Sale
Contact for pricing
809 W McGalliard Rd, Muncie, IN 47303
NNN leased Chili's with corporate guarantee in Muncie, Indiana.
Property Size5,312 SF
Price / SF$630.46
Days on Market1145
Property Features for 809 W McGalliard Rd
General Information
Standard status
Active
Size
5,312 SF
Total Parking Spaces
120
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$230,168
Building Details
Stories
1
Tenancy
Single
Listing Agency:
But Simple, Inc.
(408) 202-7125
Listed By:
David Propach · License #CA 01926166
Source:
Crexi
Added: Jul 11, 2023
Changed: Aug 8
Last Checked: Aug 26 at 4:48PM
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 But Simple, Inc.
Investment Insights
Based on property information with market context.
This property is a NNN leased restaurant with over 2.5 years remaining on its initial 20-year term. The lease includes 1.5% annual increases and four 5-year options. The tenant is Brinker International, Inc. (NYSE: EAT, www.Brinker.com), a global casual dining company that owns, operates, and franchises over 1,600 restaurants in 29 countries and two U.S. territories, including Chili’s Grill & Bar and Maggiano’s Little Italy. The current owners have experienced 17 years of continuous lease performance since purchasing the property in 2008. In late 2019, Brinker acquired the Chili's unit operator at this location, retaining it within their owned portfolio. The property is located on West McGalliard Road, a commercial thoroughfare with a traffic volume of 29,755 vehicles per day. The surrounding area has a population of over 84,000 within a 5-mile radius, encompassing residences and employment centers. Ball State University, with over 20,000 students and staff, is approximately 1.5 miles away, and IU Health Ball Memorial Hospital, with 36,000 employees, is about 2.5 miles away. The property is situated between a Walmart Supercenter 2.5 miles to the west and the Muncie Mall 1 mile to the east. The building size is 5,312 square feet.
Key Highlights
- NNN lease with Brinker International, Inc. (NYSE: EAT) as the tenant.
- 2.5+ years remaining on the initial lease term with 1.5% annual increases and four 5‑year options.
- Located on a high‑traffic commercial road (29,755 VPD) in Muncie, Indiana.
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
$95,065
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
2.84%
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%
$1,901,300
$1.9M
Cap Rate 7%
$1,358,071
$1.4M
Cap Rate 9%
$1,056,278
$1.1M
Market Conditions
NOI Build-Up for 5,312 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
$132.6K $24.96/SF
− Vacancy
−$5.8K −$1.10/SF
EGI
$126.8K $23.86/SF
− OpEx
−$31.7K −$5.97/SF
NOI
$95.1K $17.90/SF
Area
Delaware County, IN
Vacancy
4.40%
Lease Rate
$24.96 /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%
$1,901,300
Cap Rate 7%
$1,358,071
Cap Rate 9%
$1,056,278
Alternative Uses
Best Use
Specialty Retail
$1.36M
$1.19M – $1.58M
NOI $95,065 @ 7.0% cap · market cap 2.84%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$3.73M
$3.27M – $4.35M
NOI $261,229 @ 7.0% cap · market cap 7.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
633
Businesses Nearby
568k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 55%
Shops & Services 20%
Groceries 17%
Office Supplies 2%
Chick-fil-A
Dining
51,576 visits/mo
0.3 miles
Pay Less Super Markets
Groceries
49,965 visits/mo
0.4 miles
Aldi
Groceries
32,959 visits/mo
0.5 miles
Starbucks
Dining
31,889 visits/mo
0.2 miles
Culver's
Dining
23,409 visits/mo
0.2 miles
Demographics for 47303, IN
24,069
Population
11,567
Households
2.1
Avg Household Size
30
Median Age
25%
College-Educated
90%
High-School Grad
58.0 sq mi
ZIP Area
415
Density / Sq Mi
$42,556
Median Household Income
$22,497
Median Earnings
$883
Median Rent
$106,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - NNN leased Chili's with corporate guarantee in Muncie, Indiana.
Where is this conventional restaurant located?
The property is located at 809 W McGalliard Rd Muncie, IN.
What is the asking price?
The asking price for this property is $3,349,000.
What are key features of this property?
This property features: NNN lease with Brinker International, Inc. (NYSE: EAT) as the tenant.; 2.5+ years remaining on the initial lease term with 1.5% annual increases and four 5‑year options.; Located on a high‑traffic commercial road (29,755 VPD) in Muncie, Indiana.
