Sonic Lacey

Property Overview

Sonic Drive-In Lacey is a 1,608 SF, newly constructed single-tenant restaurant property located at 7746 Martin Way E in Lacey, Washington. Built in 2016, the property is occupied by Sonic Drive-In under an absolute triple net lease and sits along a high-traffic retail corridor with more than 25,000 vehicles per day on Martin Way, just off Interstate 5.

Challenge

Our team was engaged by the developer to sell this newly constructed Sonic Drive-In as a sale/leaseback transaction. The assignment required finding a buyer willing to acquire a single-tenant restaurant asset at the time of completion, with the lease structured simultaneously as part of the sale. The buyer also needed to be positioned to complete a 1031 exchange, adding a timing dimension to the transaction.

Action

We brought the property to market as an on-market offering, presenting it as a stabilized, long-term net lease investment. The marketing emphasized the strength of the lease structure: a 20-year absolute NNN lease in which the tenant is responsible for all expenses, including roof and structure, with 10% rent increases every five years through the initial term and options. We targeted buyers seeking passive, low-management assets with durable income, particularly those with 1031 exchange requirements. The property's location along a dense suburban retail corridor, with 113,000 people within five miles and a population growth rate of 6.38%, supported the investment case.

Result

• Sold for $2,105,000, or $1,309 per SF
• Successfully structured as a sale/leaseback with a 20-year absolute NNN lease
• Lease included four 5-year renewal options and contracted 10% rent increases every five years
• Transaction accommodated the buyer's 1031 exchange requirement
• Both the seller (developer) and buyer were represented in the transaction