Sonic
Retail | 6.50% CAP
Marketing description
Horvath & Tremblay is pleased to present the exclusive opportunity to purchase a Sonic located at 395 Charlie Smith Sr Highway in St. Mary’s, GA (the “Property”). Sonic signed a long-term, 20-year lease in 2022 that currently has over 16 years of term remaining and is followed by two (2), 5-year options. The lease calls for attractive 7% rent increases every five years throughout the base term and at the beginning of each renewal option.
Sonic is well located along Charlie Smith Sr Highway, a primary commuter corridor connecting downtown St. Marys with surrounding residential neighborhoods and community amenities. The Property offers strong frontage, visibility, and access, and is near a mix of national retailers and local employers that generate steady traffic in the area. It is positioned close to Kings Bay Village Shopping Center at Osborne Road, which anchors St. Mary’s primary retail trade area, and benefits from proximity to Naval Submarine Base Kings Bay, Georgia-Pacific Corporation, and St. Mary’s Middle School.
St. Mary’s is situated on the southern border of Camden County, 30 miles north of Jacksonville, Florida.
Investment highlights
LONG TERM LEASE: Sonic signed a brand-new, 20-year lease in 2022 has over 16 years of term remaining followed by two (2), 5-year options.
ATTRACTIVE RENT INCREASES: The lease calls for attractive 7% rent increases every five years throughout the base term and at the beginning of each option period, providing the investor with an attractive increase in revenue and hedge against inflation.
ZERO LANDLORD RESPONSIBILITIES: The Sonic lease is Absolute NNN and requires zero landlord responsibilities. The tenant is solely responsible for all service, maintenance, repairs, and replacements, making it an attractive investment for the passive real estate investor.
EXPERIENCED OPERATOR: Sonic is operated by Panhandle Restaurant Group, an experienced franchisee of Sonic Drive-Ins and multi-concept operator with locations throughout the southeast, covering territory from Northern Florida to Louisiana.
STRATEGIC LOCATION: Sonic is well positioned along Charlie Smith Sr Highway a key connector between downtown St. Marys and Naval Submarine Base Kings Bay, the region’s largest employer. The Property is also near Georgia-Pacific’s paper mill, another major economic driver, and St. Marys Middle School. Just up the road, the intersection of Charlie Smith Sr Highway and Osborne Road features a retail hub with national and regional tenants, serving as the primary shopping destination for the area. In addition to steady local demand, the corridor also benefits from tourism traffic tied to St. Marys’ waterfront and Cumberland Island National Seashore, as well as proximity to Jacksonville, Florida, less than an hour to the south.
NAVAL SUBMARINE BASE KINGS BAY: Naval Submarine Base Kings Bay is a major United States Navy installation located in St. Marys, Georgia, less than 3 miles from the property. The base is home to the Atlantic fleet of Ohio-class ballistic missile submarines and serves as the East Coast hub for strategic deterrence operations. It supports more than 15,000 active-duty personnel, civilian employees, and contractors, along with thousands of family members and retirees. Kings Bay hosts Submarine Group 10, Submarine Squadron 16, Submarine Squadron 20, and the Trident Training Facility, which provides advanced training for submariners across the fleet. The installation is one of the region’s largest employers and a cornerstone of the local economy, contributing significant federal investment and long-term stability to the area.
TRAFFIC COUNTS: The nearby intersection of Charlie Smith Sr Highway and Osborne Road sees more than 23,900 vehicles pass by per day.
DEMOGRAPHICS: More than 16,300 people live within 3 miles of the Property with an average household income of $89,111.
TRADE AREA: Retailers driving traffic to the immediate area include Aldi, CVS, Dollar Tree, Belk Outlet, O’Reilly Auto Parts, Advance Auto Parts, Burger King, Circle K, Arby’s, Ameris Bank, Wendy’s, Anytime Fitness, Pizza Hut, bealls, Domino’s, Verizon, Domino’s, Dollar General, and the Heritage Bank. The larger St. Marys and Kingsland trade area features additional major retailers including Walmart Supercenter, Publix, and Lowe’s that bring in consumers from all of Camden County.
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