Sonic | S 1st Street | Lufkin, TX
Lufkin, TX (S 1st St) | 21,000 VPD | | 191 Unit Franchisee Guaranty | Absolute NNN Lease
Marketing description
The Northmarq National Restaurant Group is pleased to offer this single-tenant Sonic located at 1805 S. 1st Street in Lufkin, Texas. The property is secured by an absolute NNN lease with 14.52 years remaining, four five-year renewal options, and 10 percent rent increases every five years. The tenant, Soar Restaurants II, LLC, is a Top 3 Sonic franchisee operating six different concepts, providing one of the brand’s strongest guaranties nationwide.
Positioned along Lufkin’s dominant retail corridor, the site benefits from 33,000+ vehicles per day and proximity to Walmart, Sam’s Club, Home Depot, H-E-B, Chick-fil-A, Starbucks, and Lufkin Mall. The surrounding trade area includes 13,000 students within five miles, major employers such as CHI St. Luke’s Health Memorial (2,000+ employees), Pilgrim’s Pride (1,200 employees), and Georgia-Pacific (1,000 employees), and strong tourism with 6.3 million visitors in 2023.
With its long-term absolute NNN lease, strong franchisee guaranty, and prime Texas location, this offering provides investors with a compelling blend of stability and long-term value.
Investment highlights
ABSOLUTE NNN LEASE WITH 10% RENTAL INCREASES EVERY 5 YEARS - The property is secured by an absolute triple-net lease with more than 10 years of term remaining, requiring no landlord responsibilities. There are built-in 10% rent increases every five years, coupled with four additional 5-year renewal options.
STRONG TENANT GUARANTY - The franchisee is a Top 3 largest franchisee in the Sonic system. They are a well-known, widely respected franchisee group that operates over 6 different concepts. They are based in Texas and the state is a central focus to their nationwide operation.
13,000 STUDENTS WITHIN A 5 MILE RADIUS - Angelina College, located just 2.8 miles south, enrolls approximately 4,000 students and serves as a key workforce pipeline for the region. The Lufkin Independent School District educates more than 7,000 K–12 students across 13 schools, including Lufkin High School (3.7 miles) with over 2,000 students. All campuses are within a five-mile radius of the property.
PRIME RETAIL CORRIDOR LOCATION - The property is located along South 1st Street, Lufkin’s dominant retail corridor, surrounded by Walmart, Sam’s Club, Home Depot, H-E-B, Chick-fil-A, Starbucks, and Lufkin Mall.
TOURISM - 6.3 MILLION VISITORS IN 2023 - Lufkin attracted 6.3 million visitors in 2023, an 8.4% increase year-over-year, supported by attractions such as Ellen Trout Zoo, the Texas Forestry Museum, the Museum of East Texas, and regional recreation at Sam Rayburn Reservoir and Davy Crockett National Forest.
ECONOMIC & EMPLOYMENT HUB - Lufkin anchors Angelina County’s economy with a diverse base of healthcare, manufacturing, and distribution employers. CHI St. Luke’s Health Memorial (2,000+ employees) and Woodland Heights Medical Center (800+ employees) serve as the region’s largest healthcare providers. Major industrial and manufacturing employers include Georgia-Pacific (1,000+ employees), Pilgrim’s Pride (1,200+ employees), and Lufkin Industries (600+ employees).
REGIONAL TRAFFIC HUB - The property benefits from strong frontage along South 1st Street with direct access to US-59/I-69, a future interstate expansion route that enhances connectivity across the region. Its proximity to S. John Redditt Drive (US-287) creates a combined traffic count of 80,000+ vehicles per day, providing exceptional visibility and accessibility.
PRICED BELOW REPLACEMENT COST - This Sonic is being offered for less than what it would cost to build a new location today. With construction and labor costs continuing to rise, buying at this lower basis gives investors built-in value on day one.
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