Sonic Drive-In Olympia

Property Overview

1303 Cooper Point Road SW, Olympia, WA is a 1,629 SF Sonic Drive-In built in 2016 and situated along a high-traffic retail corridor. The property fronts Cooper Point Road with traffic counts exceeding 30,000 vehicles per day and was 100% occupied at the time of sale under an absolute net lease.

Challenge

Our team was engaged to represent the buyer in acquiring a single-tenant Sonic Drive-In as part of a 1031 exchange. The buyer needed a passive, low-management asset with durable income and long-term lease security. Finding a property that met those criteria at the right price required identifying an off-market or newly structured opportunity before it was absorbed by competing demand.

Action

We identified a sale-leaseback opportunity with the developer, structured around a new 20-year absolute net lease. The lease terms were landlord-favorable: the tenant pays all expenses directly and is responsible for all building maintenance, including the roof and structure. Rent increases of 10% are built in every five years through the initial term and options, with four additional 5-year renewal options extending the lease well beyond the primary term. We guided the buyer through the acquisition and coordinated the transaction to align with their 1031 exchange timeline.

Result

• Acquired at the full asking price of $2,660,000 ($1,633 per SF)
• Secured a 20-year absolute net lease with four 5-year renewal options
• Tenant responsible for all expenses, including roof and structure, providing true passive income
• 10% contracted rent increases every five years through the initial term and options
• Property operated by a franchisee with five Sonic locations in Washington, supporting operational stability