Cedar & Salt Espress Drive Thru Ground Lease

Investment summary

Kidder Mathews is pleased to present the opportunity to acquire a newly constructed Cedar & Salt Coffee drive-thru ground lease, strategically located at the high-traffic corner of Highway 20 and Pioneer Way in Oak Harbor, Washington—a growing community approximately 1 hour and 45 minutes north of Seattle and home to Naval Air Station Whidbey Island. Situated on a .43-acre parcel, the property is part of a vibrant new development that includes a Sonic Drive-In and a Glint Car Wash (soon to be Quick Quack Car Wash), generating strong cross-traffic and complementary tenant synergy. The investment is structured as a build-to-suit ground lease, wherein the tenant holds rights to the improvements during the lease term. Upon lease expiration, all improvements revert to the landlord, offering long-term residual value in addition to passive income under the NNN lease structure. The lease includes a 15-year initial term, four 5-year renewal options, and a percentage rent clause, providing long-term upside potential tied to tenant performance. This is a rare opportunity to acquire a new construction, net-leased retail asset in a high-visibility location, combining built-in value growth with long-term passive income.

Investment highlights

• LONG TERM ABSOLUTE NNN GROUND LEASE

  15 years remaining on the initial lease term, along with 4 successive 5-year renewal options.

• ZERO LANDLORD OBLIGATIONS

  The tenant is solely responsible for all property expenses and upkeep.

• CONTRACTED RENT BUMPS

  10% rent increase every 5 years through the initial term and options.

• NEW CONSTRUCTION

  Attractive, low maintenance building completed in 2025.