Investment Overview

Marcus & Millichap's Brown Retail Group has been selected to exclusively market for sale a Sonic (dark) location in Pouslbo, WA.Sonic has 13 years remaining on the original 21-year Absolute NNN lease. The Property's Lease is guaranteed by Sortis Income REIT, Inc., and is scheduled to re-brand its operations in the spring of 2024. The new brand will be operating under the same guarantee from Sortis Income REIT, Inc. Once announced, the property will be renovated and updated in order to match the new brand. The Property features +3.70% annual rent increases a over the next three years of the lease followed by a 10% rent increase every five years, resulting in a 7.23% cap rate effective September, 2027. The Property is located adjacent to HWY 3, on the corner of Viking Way and State HWY 305, featuring in excess of 74,000 vehicles per day (VPD) with great ingress/egress and visibility to the drive-thru and drive-in stations. The Property benefits from close proximity to national retailers such as: The Home Depot, Walmart, Petco, and more as well as to Olympic College, Vinland Elementary School, North Kitsap High School, and Poulsbo Elementary. The Poulsbo, WA submarket currently boasts a 3.1% retail vacancy rate and 15.3% rent growth over the past three years (per CoStar), making it one of the strongest retail markets in the state of Washington. With no new retail product delivered in the past five years and nothing currently under construction, the development lull creates an incredibly high barrier-to-entry market as demand for space remains high.