Description

31425 State Route 20 is a Sonic retail property offered for sale in Oak Harbor, WA. The 1,292 SF building has a drive-thru and sits at a signalized intersection, pairing a restaurant format with exposure to 36,530 AADT.

Built in 2024 on 0.72 acres, the property is structured as a 20-year absolute net sale-leaseback. The lease calls for 10% rent increases every 5 years throughout the base term and options, with rent commencing at close of escrow. The tenant is responsible for property taxes, insurance, utilities, maintenance, roof and structure. For an investor, that structure puts the lease and its allocation of operating responsibilities at the center of the acquisition.

The property is adjacent to Safeway and Walmart at State Route 20 and S Oak Harbor Street, with other nearby retailers including Home Depot and Tractor Supply. Downtown Oak Harbor is 0.7 miles away. Oak Harbor serves as a retail and service hub for northern Whidbey Island and surrounding Island County communities, while Naval Air Station Whidbey Island is a major local employment anchor. The intersection and neighboring stores place the drive-thru within an established shopping area.

The asking price is $2,545,000, with $140,000 NOI and a 5.50% cap rate. The sale-leaseback is signed by a Sonic franchisee operating 175+ locations across 14 states. Together, the lease term, scheduled increases and tenant expense responsibilities define the income position for a buyer focused on single-tenant retail. Review the Offering Memorandum for the transaction.