Sonic Drive-In & Billboard - 55 Newbury Street, Peabody, MA 01960 - NNN Properties
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Sonic Drive-In & Billboard
55 Newbury Street,
OFFERING MEMOR ANDUM Peabody, MA 01960
Exclusive Net-Lease Offering
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected
Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square
sales with little or no record of actual performance, or footage of the property and improvements, the presence or
The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the
obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical
Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial
information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s
investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject
no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure
accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable;
intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify,
As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus &
responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters
completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding
purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All
thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of
opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein.
to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release
Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE
Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising
Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc.
the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any
net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package.
evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended
to indicate or imply affiliation with, or sponsorship or
Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or
should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing
leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing
suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective
written consent of Marcus & Millichap. This Marketing Brochure customers.
Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information
risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS.
this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation,
guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the
SPECIAL COVID-19 NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as
they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been
retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing
investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as
lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory,
financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial
statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their 55 Newbury Street, Peabody, MA 01960
own projections, analyses, and decision-making.
Investment Highlights
PRICE: $7,713,675 | CAP Rate: 4.68% | RENT: $361,000
About the Investment
Brand New 15-Year Triple-Net (NNN) Lease with 13.5 Years Remaining
Top 1% Sonic Location Throughout the Entire Chain According to Placer.ai!
Growing Sonic Operator with Aggressive Expansion Plans
Unique Location Containing a Drive-Thru, Delivery Bays, and an Indoor Dining
Room
Additional Income Generated From an Electronic Billboard with Excellent
Visibility that is Subject to a Lease with 20+ Years Remaining and a Lamar
Companies Guaranty
About the Location
Strategically Located in an Extremely Dense Retail Corridor| Walmart, Target,
Stop & Shop, Whole Foods, Marshalls, T.J. Maxx, Dick’s Sporting Goods, The
Home Depot, and Many More
Phenomenal Demographics| Population Exceeds 835,000 Individuals Within a
Ten-Mile Radius | Average Income Over $128,000 in One-Mile Radius
Strong Real Estate Fundamentals | Less Than 15-Miles from Downtown Boston
Ideally Positioned at the Intersection of Route 1 and Interstate-95 | Over
101,100 Vehicles Per Day on Route 1 and 128,805 Vehicles Per Day on Interstate-
95
About the Tenant / Brand
Soar Restaurants, LLC | Approximately a 90-Unit Sonic Franchisee and Growing |
Development Plans to Open 25 Sonic Locations in the Northeast
Subsidiary of CMG Companies | Top 25 Unit Operator in the Country | The
Company Operates Restaurants in 20+ States with Approximately 300 Locations
| Third Largest KFC Franchisee in the YUM System
Sonic is One of the Nation’s Most Recognized Brands, with More Than 3,500
Locations Throughout the Country
In 2018, Atlanta-Based Inspire Brands, Owner of Arby's and Buffalo Wild Wings,
Purchased Sonic Drive-In for $2.3 billion
Sonic – Peabody, MA 3
Financial Analysis
PRICE: $7,713,675 | CAP Rate: 4.68% | RENT: $361,000
Property Description The Offering
Property Sonic Drive-In & Lamar Billboard Purchase Price $7,713,675
Property Address 55 Newbury Street, CAP Rate 4.68%
City, State, ZIP Peabody, MA 01960 Total Annual Rent $361,000
Year Built 2009 Sonic Annual Rent $240,000
Building Size 2,400 SF Billboard Annual Rent $121,000
Lot Size 1.11 Acres
Type of Ownership Fee Simple
Sonic Lease Summary INVESTMENT SUMMARY
Property Type Net Leased Quick-Service Restaurant Marcus & Millichap is pleased to present the exclusive listing for the Sonic
Guarantor Soar Restaurants, LLC Drive-In restaurant and Lamar Billboard located 55 Newbury Street in Peabody,
MA. The property was built in 2009 and consists of approximately 2,400
Lease Commencement August 31, 2020 rentable square feet on roughly 1.11 acre of land.
Lease Expiration August 31, 2035
Lease Term Remaining 13.5 Years The property is subject to a brand new 15-year triple-net (NNN) Sonic lease
Lease Type Triple-Net (NNN) that is set to expire on August 31, 2035. This Sonic restaurant is a top 10
Roof & Structure Tenant Responsible performer in the entire chain and top 1% on Placier.ai. The lease is subject to
5% rental increases at the start of each of the three, five-year tenant renewal
Rental Increases 5% Increases at the Start of Each Option periods.
Options to Renew Three, Five Year Option Periods
In addition to the Sonic income, the property contains a billboard leased to The
Billboard Lease Summary Lamar Companies. The billboard lease is subject to a 25-year triple-net (NNN)
Property Type Billboard lease with roughly 20.25 years remaining and 10% rental escalations every five
Tenant / Guarantor The Lamar Companies years. The Lamar Companies is a publicly traded company (LAMR) with more
than $1.7B of revenue and has more than 351,000 displays across North
Lease Commencement June 1, 2017
America. Additionally, Lamar has the largest network of digital billboards in the
Lease Expiration May 30, 2042 United States with more than 3,900 displays.
Lease Term Remaining 20.25 Years
Lease Type Triple-Net (NNN)
Roof & Structure Tenant Responsible
Rental Increases 10% Increases Every Five Years
Options to Renew None
Sonic – Peabody, MA 4
Tenant Overview
SONIC DRIVE-IN OVERVIEW
Sonic Corporation operates and finances the largest chain of
drive-in restaurants in the United States. The first Sonic Drive-
In restaurant was opened in 1953, and as of 2019, there are
more than 3,500 Sonic’s nationwide. The typical Sonic Drive-In
has 16 to 24 parking space, each having its own payment
terminal, intercom speaker system and menu board. Sonic
offers a highly diverse menu. The menu is built around the TENANT OVERVIEW
finest quality items available, offering conveniently priced
items as well as healthy alternatives. Signature food items Based out of Dallas, TX, CMG Companies, is a Franchise
include specialty drinks (such as cherry limeades and slushes), Times top 25 multi-unit operator of restaurants and
ice cream desserts, made-to-order chicken sandwiches and hotels. They operate in 20+ states with approximately 300
hamburgers, a variety of hot dogs including six-inch premium restaurants and 8 hotels. The principals of CMG started
beef hot dogs and foot long quarter-pound coneys, hand- out as a franchisee in Genghis Grill, later acquiring the
made onion rings and tater tots. parent and subsequently growing the restaurant chain to
over a hundred units as both a franchisor and corporate
operator. In addition, they are proud to be the 3rd largest
franchisee of KFC (Yum Brands) with 200+ locations and
plan to operate within the Taco Bell system. In total, they
operate 200+ KFC/Taco Bells, 90+ Mongolian Grill
concepts, 8 hotels, a cricket franchisee in Dallas, and a
pipeline of more than 100 Sonic properties throughout
the country.
Sonic – Peabody, MA 5
Surrounding Area
Property Address: 55 Newbury Street, Peabody, MA 01960
MarketStreet
New Saugus High
School Development:
$160M
Sonic – Peabody, MA 6
Location Overview
Property Address: 55 Newbury Street, Peabody, MA 01960
The subject Sonic property greatly benefits from being extremely well-positioned in
a very dense retail corridor consisting of national and local tenants, shopping
centers, hospitality accommodations, and academic institutions. Major national
tenants in the area include Walmart, Walgreens, Dick’s Sporting Goods, Macy’s,
Stop & Shop, Kohl’s, Home Depot, Target, T.J. Maxx, McDonald’s, and so many
more. The property is also within immediate proximity of several hospitality
accommodations including SpringHill Suites, Hampton Inn, Homewood Suites, Four
Points by Sheraton Wakefield, Red Roof Inn, Holiday Inn express, Wood Spring
Suites Signature, and more. The subject property also benefits from its close
proximity to Square One Mall, a Simon owned mall, which has over 115 stores, as
well as the iconic Market Street, a thriving village center where sought-after retail,
dining options from fast to fancy and family entertainment exist together in a
perfect mash-up of modern convenience and small-town charm.
The site is situated on Route 1, which is one of the primary commuting roads in and
out of downtown Boston. Route 1 boasts a staggering average daily traffic count of
119,347 vehicles. Route 1 intersects with interstate 95, which brings an additional
121,805 vehicles into the immediate area per day. Furthermore, the surrounding
ADTC: 121,805
area has a robust population with a whopping 248,121 people residing within a five-
mile radius of this property and over 835,536 individuals within a ten-mile radius. In
addition, the property benefits from being located in an extremely affluent
community with average household income in a one-mile radius of more than
$130,000.
Located just North of Boston, Peabody has greatly benefitted from its close
proximity to the state’s capital city and acts as one of the largest bed-room
communities in the area. Boston is the largest city in New England and the 23rd
most populous city in the United States. Boston is also home to many colleges and
universities that help make Boston an international center of higher education, ADTC: 119,347
including law, medicine, engineering, and business, and the city is considered to be
a world leader in innovation and entrepreneurship with nearly 2,000 startups.
Boston's economic base also includes finance, professional and business services,
biotechnology, information technology, and government activities. Furthermore,
Boston’s Logan International Airport is located only 10 miles from the subject
property and is the 17th busiest airports in the United States. The Massachusetts
Bay Transportation Authority (MBTA) allows for easy access from Lynnfield to
downtown Boston.
Sonic – Peabody, MA 7
Property Photo
Property Address: 55 Newbury Street, Peabody, MA 01960
Sonic – Peabody, MA 8
Property Photo
Property Address: 55 Newbury Street, Peabody, MA 01960
60 Residential Apartments
Being Developed
Sonic – Peabody, MA 9
Surrounding Area Photos
New Saugus High School
$160M Development
Sonic – Peabody, MA 10Local Map
Property Address: 55 Newbury Street, Peabody, MA 01960
The Property is only 15 Miles
North of Downtown Boston!
Boston Logan International Airport (BOS)
Sonic – Peabody, MA 11Regional Map
Property Address: 55 Newbury Street, Peabody, MA 01960
MA
Sonic – Peabody, MA 12Demographics
Property Address: 55 Newbury Street, Peabody, MA 01960
1 Miles 3 Miles 5 Miles 10 Miles
POPULATION TRENDS
2010 Population 4,754 55,841 234,592 786,626
10 Miles 2021 Population 5,237 60,465 248,121 835,536
2026 Population Projection 5,350 61,598 251,736 846,940
Annual Growth 2010-2021 0.90% 0.80% 0.50% 0.60%
Annual Growth 2021-2026 0.40% 0.40% 0.30% 0.30%
POPULATION BY RACE (2021)
White 4,768 55,129 204,149 678,171
Black 148 1,984 22,735 68,027
5 Miles American Indian/Alaskan Native 15 153 2,177 5,483
Asian 232 2,168 11,303 59,917
3 Miles Hawaiian & Pacific Islander 0 12 434 964
Two or More Races 73 1,020 7,323 22,974
1 Mile Hispanic Origin 265 3,715 52,514 147,186
HOUSEHOLD TRENDS
2010 Households 1,860 22,150 90,585 306,507
2021 Households 2,046 23,948 95,660 325,282
2026 Household Projection 2,092 24,405 97,080 329,811
Annual Growth 2010-2021 0.90% 0.60% 0.30% 0.40%
Annual Growth 2021-2026 0.50% 0.40% 0.30% 0.30%
Avg Household Income $130,563 $120,760 $106,154 $114,257
Median Household Income $111,352 $94,799 $82,113 $87,164
HOUSEHOLDS BY HOUSEHOLD INCOME
(2021)
< $25,000 187 2,365 14,076 46,934
$25,000 - 50,000 226 3,204 15,190 48,652
$50,000 - 75,000 223 3,821 14,698 46,759
$75,000 - 100,000 244 3,264 13,587 41,710
$100,000 - 125,000 316 2,761 10,003 32,290
$125,000 - 150,000 235 2,130 7,361 25,979
$150,000 - 200,000 280 2,762 9,587 35,626
$200,000+ 336 3,643 11,158 47,332
Sonic – Peabody, MA 13Market Overview
City: Boston | County: Suffolk| State: Massachusetts
Boston, MA Boston officially the City of Boston, is the capital and most populous city of the
Commonwealth of Massachusetts in the United States and 24th-most populous city in
the country. The city proper covers 48.4 square miles. with a population of 675,647 in
2020, also making it the most populous city in New England. It is the seat of Suffolk
County (although the county government was disbanded on July 1, 1999). The city is the
economic and cultural anchor of a substantially larger metropolitan area known as
Greater Boston, a metropolitan statistical area home to a census-estimated 4.8 million
people in 2016 and ranking as the tenth-largest MSA in the country.
Boston is one of the oldest municipalities in the United States, founded on the
Shawmut Peninsula in 1630 by Puritan settlers from the English town of the same
name. It was the scene of several key events of the American Revolution, such as the
Boston Massacre, the Boston Tea Party, the Battle of Bunker Hill and the siege of
Boston. Upon American independence from Great Britain, the city continued to be an
important port and manufacturing hub as well as a center for education and culture.
The city has expanded beyond the original peninsula through land reclamation and
municipal annexation. Its rich history attracts many tourists, with Faneuil Hall alone
drawing more than 20 million visitors per year. Boston's many firsts include the United
States' first public park (Boston Common, 1634), first public or state school (Boston
Latin School, 1635)and first subway system (Tremont Street subway, 1897).
A global city, Boston is placed among the top 30 most economically powerful cities in
the world. Encompassing $363 billion, the Greater Boston metropolitan area has the
sixth-largest economy in the country and 12th-largest in the world.
Boston's colleges and universities exert a significant impact on the regional economy.
Boston attracts more than 350,000 college students from around the world, who
contribute more than US$4.8 billion annually to the city's economy. The area's schools
are major employers and attract industries to the city and surrounding region. The city
is home to a number of technology companies and is a hub for biotechnology, with the
Milken Institute rating Boston as the top life sciences cluster in the country. Boston
receives the highest absolute amount of annual funding from the National Institutes of
Health of all cities in the United States.
The city is considered highly innovative for a variety of reasons, including the presence
of academia, access to venture capital, and the presence of many high-tech companies.
The Route 128 corridor and Greater Boston continue to be a major center for venture
capital investment, and high technology remains an important sector.
Sonic – Peabody, MA 14OFFERING MEMORANDUM
55 Newbury Street, Peabody, MA
GLEN KUNOFSKY JOSH KANTER ANTHONY D’AMBROSIA
Founder Vice President Vice President
Net Lease Properties Group Net Lease Properties Group Net Lease Properties Group
NNN PRO GROUP NNN PRO GROUP NNN PRO GROUP
Of Marcus & Millichap Of Marcus & Millichap Of Marcus & Millichap
275 Madison Avenue 100 High Street 275 Madison Avenue
Floor 13 Floor 10 Floor 13
New York, NY 10016 Boston, MA 02110 New York, NY 10016 MA Broker of Record:
(212) 430-5115 Direct (617) 470-8690 Direct (203) 887-8797 Direct Thomas Shihadeh
Gkunofsky@NNNPRO.com Jkanter@NNNPRO.com ADambrosia@NNNPRO.com License: 1000485You can also read
