The subject property provides an investor the opportunity to acquire a long-term, absolute triple-net-leased, corporate Arby’s restaurant located in a dense retail trade area on the west side of Indianapolis, Indiana. Arby’s has a 20-year occupancy history at the subject site and has renewed their lease on a long-term basis through May 2030 providing 14+ years of remaining firm term and four, five-year renewal option periods thereafter. The lease is corporately backed by Arby’s Restaurant Group, Inc., requires zero landlord responsibilities and offers increasing cash flows with rental escalators within the current term and all renewal option periods. Store performance is available, trending upwards and is approximately 25 percent higher than unit-level national averages.
The site is located at the signalized entrance to Speedway Supercenter, a 575,000-square foot community shopping center anchored by Kroger, Kohl’s, Sears, Dollar Tree and Petco. Additionally, the subject property is located one and one-half miles west of the Indianapolis Motor Speedway.
Arby’s Restaurant Group, Inc. is one of the largest quick-service sandwich chains in the U.S. with more than 3,300 restaurants system wide. Roark Capital Group acquired the company in July 2011 and owns 81.5 percent of the company, with The Wendy’s Company owning the other 18.5 percent. Arby’s Restaurant Group Inc.’s same-store sales rose 8.1 percent in 2015, the best performance for the Atlanta-based chain in more than 20 years. Longer-term samestore sales growth also reached records as systemwide sales reached $3.5 billion. The chain’s same-store sales have grown for 21 straight quarters, and increased 13.8 percent on a two-year basis and 16.6 percent over three years, both figures were the highest in two decades.