New Construction Sonic Drive-In

Property Overview

Located at 11551 37th Ave NE in Marysville, Washington, this 1,629 SF Sonic Drive-In was completed in February 2018. The property sits along 116th Street in a high-traffic retail corridor with daily vehicle counts exceeding 23,000. The tenant, an experienced franchisee operating nine Sonic locations throughout the Puget Sound region, signed a 20-year absolute net lease with no landlord responsibilities and 10% rent increases every five years.

Challenge

Our team was engaged by the developer to sell this newly constructed Sonic Drive-In as a sale/leaseback transaction. The assignment required identifying a buyer who could close on a new construction asset with a freshly executed lease, while also accommodating a buyer completing a 1031 exchange. Matching the timing and structure of a sale/leaseback with the requirements of a 1031 buyer added a layer of coordination to an otherwise straightforward disposition.

Action

We brought the property to market as an on-market offering, positioning it around the strength of the lease structure: a 20-year absolute net term, zero landlord responsibilities, and contracted rent growth. Our marketing emphasized the operator's track record across nine locations in Washington and the property's location within a growing Snohomish County market. We targeted buyers seeking passive, low-management assets, including those with active 1031 exchange requirements.

Result

• Sale price of $2,733,000, within $10,000 of the $2,743,000 asking price
• $1,678 per square foot
• Property sold 100% occupied with a 20-year absolute net lease in place
• Successfully structured as a sale/leaseback, closing with a 1031 exchange buyer