Investment Overview

Marcus & Millichap is pleased to present this single-tenant SONIC Drive-In located at 457 Charles H Dimmock Pkwy in Colonial Heights, Virginia. The property is situated on 0.91 acres and was constructed in 2006. SONIC Drive-In has 10 years remaining on an Absolute Net lease, operated by Saja Restaurant Group, LLC, a 10-unit franchisee based in Virginia. The lease includes 1.5 percent annual rent increases throughout the base term and each of the four five-year option periods. Per Placer.ai, this SONIC Drive-In location significantly outpaces the traffic for the next closest store locations and is within the top tier for the country, and has the second highest ranking for the state of Virginia. The restaurant reported strong sales for 2023 at $2.79 million, a 14.67 percent increase over the year prior. The rent-to-sales ratio is 5.58 percent. SONIC Drive-In is a popular American fast-food restaurant chain known for its nostalgic drive-in service, where customers can order from their cars and have their meals delivered by roller-skating carhops. Founded in 1953 in Oklahoma, SONIC serves 3 million customers per day, and is the largest drive-in restaurant brand in the United States, with more than 3,500 restaurants in 47 states. SONIC is part of the Inspire Brands family of restaurants. Inspire Brands is a multi-brand restaurant company with a portfolio including over 32,600 Arby’s, Baskin-Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s, and SONIC restaurants across nearly 60 global markets and all 50 states. The subject property is well-positioned with high visibility at the corner of Charles H Dimmock Pkwy (23,000 vehicles per day) and Temple Ave (33,000 vehicles per day). The building is located on the eastern edge of town, and is an outparcel to an ALDI and Extended Stay America Premier Suites. Southpark Mall, an 800,000-square-foot regional shopping mall, is adjacent to the asset and is anchored by Dick’s Sporting Goods, JCPenney, Macy’s, and Regal Cinema. Other large retailers in the immediate area include Target, Sam’s Club, Walmart, Best Buy, Books-A-Million, Ashley HomeStore, and many others. Virginia State University, a public university with a student population of 4,000, is 3.3 miles from the property. Also nearby is Fort Gregg-Adams, a 5,907-acre military base and the third largest Army training site for the United States. Bon Secours Southside Medical Center is seven miles away, which boasts 300 beds and 400 physicians practicing over 40 specialties. Colonial Heights, Virginia, is a thriving city strategically located in the Tri-Cities area, just 20 miles south of Richmond. Positioned along the Interstate 95 corridor (107,000 vehicles per day), Colonial Heights serves as a critical link between Richmond, Petersburg, and other nearby regions. This prime location allows businesses to capitalize on high traffic volumes and easy access to major transportation routes. There are over 101,800 residents with an average household income exceeding $73,500 within five miles of this asset. The area’s population is expected to grow by 1.2 percent over the next five years. The area also boasts a strong daytime population at 103,010.