MEMORANDUM - EXCLUSIVE NET-LEASE OFFERING - NNN Properties
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Representative Photo EXCLUSIVE NET-LEASE OFFERING MEMORANDUM 118 Steven B. Tanger Boulevard, Commerce, GA 30529
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 own projections, analyses, and decision-making.
Representative Photo Table of Contents Investment Highlights 4 Financial Analysis 5 Concept/Tenant Overview 6 Surrounding Area 7 Location Overview 8 Local Map 9 Regional Map 10 Demographics 11 Market Overview 12
Investment Highlights
PRICE: $2,900,000 | CAP: 5.25% | RENT: $152,250
About the Investment
20-Year Absolute Triple-Net (NNN) Sale-leaseback
Franchisee Guarantee from AFG SR OP II, LLC (18 Units)
1.50% Annual Rental Increases Starting Year Six (6)
Four (4), Five (5)-Year Tenant Renewal Option Periods
About the Location
Dense Retail Corridor | Surrounded By Walmart, Home Depot, Dollar Tree,
McDonald’s, Burger King, Popeyes, Five Guys, Taco Bell, and More
Less than a Half Mile Away from Tanger Outlets | 66-Shop Outlet Mall
High Traffic Counts | 17,000 and 38,800 Average Daily Traffic Counts on U.S.
Highway 441 and I-85
Located One Hour Northeast of Downtown Atlanta, GA and 30 Minutes from
Athens, GA
About the Brand
Sonic Drive-In Opened Their First Restaurant in 1953 and Now Maintains More
Than 3,600 Drive-In Restaurants
Sonic Continues to Thrive | Maintenance of Strong Real Sales Growth, Industry-
Leading Customer Frequency, and High Returns for Stockholders
Rated Top QSR Restaurant Chain in 14 States Amidst Covid-19 Pandemic
4
Financial Analysis
PRICE: $2,900,000 | CAP: 5.25% | RENT: $152,250
PROPERTY DESCRIPTION RENT SCHEDULE
Property Sonic Lease Year Annual Rent Monthly Rent Rent Escalation
Year 1 $152,250 $12,688 -
Property Address 118 Steven B. Tanger Blvd
Year 2 $152,250 $12,688 -
City, State, ZIP Commerce, GA 30529 Year 3 $152,250 $12,688 -
Estimated Building Size 1,708 Year 4 $152,250 $12,688 -
Year 5 $152,250 $12,688 -
Estimated Lot Size +/- 0.99 Acres
Year 6 $154,534 $12,878 1.50%
Type of Ownership Fee Simple Year 7 $156,852 $13,071 1.50%
Year 8 $159,205 $13,267 1.50%
THE OFFERING
Year 9 $161,593 $13,466 1.50%
Purchase Price $2,900,000 Year 10 $164,016 $13,668 1.50%
CAP Rate 5.25% Year 11 $166,477 $13,873 1.50%
Year 12 $168,974 $14,081 1.50%
Annual Rent $152,250
Year 13 $171,508 $14,292 1.50%
LEASE SUMMARY Year 14 $174,081 $14,507 1.50%
Year 15 $176,692 $14,724 1.50%
Property Type Net Leased Quick Service Restaurant
Year 16 $179,343 $14,945 1.50%
Tenant / Guarantor AFG SR Commerce, LLC / AFG SR OP II, LLC (18 Units) Year 17 $182,033 $15,169 1.50%
Original Lease Term 20 Years Year 18 $184,763 $15,397 1.50%
Year 19 $187,535 $15,628 1.50%
Lease Commencement Close of Escrow
Year 20 $190,348 $15,862 1.50%
Lease Expiration 20 Years From COE
Lease Term Remaining 20 Years INVESTMENT SUMMARY
Marcus & Millichap is pleased to present the exclusive listing for the Sonic located at
Lease Type Absolute Triple-Net (NNN) 118 Steven B. Tanger Boulevard in Commerce, GA. The site will consist of roughly 1,708
Roof & Structure Tenant Responsible rentable square feet of building space on an estimated 0.99-acre parcel of land. The
Sonic is subject to a 20-year absolute triple-net (NNN) sale-leaseback, which will
Rental Increases 1.50% Annually Starting Year Six (6) commence upon close of escrow. The initial annual rent will be $152,250 and is
scheduled to increase by one-and-a-half percent (1.50%) annually starting year six (6)
Options to Renew Four (4) Periods of Five (5) Years Each throughout the base term and in each of the four (4), five (5)-year renewal options.
5
Concept 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 September 2020,
there are approximately 3,600 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 finest quality items available, offering conveniently priced
items as well as healthy alternatives. Signature food items
include specialty drinks (such as cherry limeades and slushes), Highly Popular Amidst Covid-19 Pandemic
Map of Top QSR Chain in Each State
ice cream desserts, made-to-order chicken sandwiches and
hamburgers, a variety of hot dogs including six-inch premium
beef hot dogs and foot long quarter-pound coneys, hand-
made onion rings and tater tots.
6
Surrounding Area
7
Location Overview
This Sonic Drive-In property is located at 118 Steven B. Tanger Boulevard in
Commerce, Georgia, right off U.S. Highway 441, which experiences average
daily traffic counts of 17,000 vehicles. U.S Highway 441 intersects with
Interstate 85 less than half a mile from the subject property, bringing over
38,000 vehicles into the immediate area on average daily.
The subject property benefits from its strategic location in a dense retail
corridor. Major retail tenants in the surrounding area include Walmart,
Home Depot, Dollar Tree, McDonald’s, Burger King, Popeyes, Five Guys,
Taco Bell, and more. Additionally, this Sonic is located less than one Mile
From Tanger Outlets, a 66-shop outlet mall featuring a variety of designer
brands. The immediate area of the subject property also features several
ADTC: 17,000
hotels that drive tourist traffic near the Sonic, such as a Holiday Inn, Fairfield
Inn, and Travelodge. Nearby access to Interstate 85 provides for easy
transportation to Atlanta, about 70 miles southwest of the subject property.
Listed on the National Register of Historic Places, Commerce has an
impressive historic downtown Commercial District with a collection of 19th
and 20th century commercial and industrial structures. In addition to several
shopping centers, there are other attractions in Commerce, such as Atlanta
Dragway and Funopolis Family Fun Center that features mini golf, laser tag
and an arcade. Deer Trail golf course offers traditional golfing in the foothills
of the North Georgia Mountains. Historic Downtown Commerce is an
enjoyable destination for all ages. Commerce is approximately 70 miles from ADTC: 38,800
Atlanta and 25 miles away from Athens, Georgia. The city is dominated by a
pervasive college town culture and music scene centered in downtown
Athens, next to the University of Georgia's North Campus. The city is also
home to established technology companies such as Partner Software,
Peachtree Medical Billing, and Digital Insight.
8
Local Map
Atlanta International Airport (ATL)
9
Regional Map
GEORGIA
10Demographics
3 Miles 5 Miles 10 Miles
POPULATION TRENDS
2010 Households 4,663 13,110 32,459
10 Miles 2021 Households 5,299 14,485 35,619
2026 Household Projection 5,910 16,197 39,505
Annual Growth 2010-2021 1.20% 1.00% 0.90%
Annual Growth 2021-2026 2.30% 2.40% 2.20%
POPULATION BY RACE (2021)
5 Miles White 4,227 12,272 31,648
Black 766 1,537 2,555
American Indian/Alaskan Native 73 126 212
3 Miles Asian 103 224 511
Hawaiian & Pacific Islander 4 12 25
Two or More Races 125 314 668
Hispanic Origin 541 1,193 2,244
HOUSEHOLD TRENDS
2010 Households 1,607 4,788 11,762
2021 Households 1,832 5,283 12,900
2026 Household Projection 2,042 5,904 14,293
Growth 2010-2021 0.40% 0.20% 0.30%
Growth 2021-2026 2.30% 2.40% 2.20%
AVERAGE HOUSEHOLD INCOME (2021) $60,846 $59,914 $63,384
MEDIAN HOUSEHOLD INCOME (2021) $44,633 $44,591 $47,028
HOUSEHOLDS BY HOUSEHOLD INCOME
(2021)
< $25,000 2,162 5,870 26,117
$25,000 - 50,000 4,861 11,510 43,840
$50,000 - 75,000 5,286 12,354 43,664
$75,000 - 100,000 4,199 10,907 42,760
$100,000 - 125,000 4,726 10,253 38,618
$125,000 - 150,000 3,873 8,453 31,206
$150,000 - 200,000 4,584 10,873 41,232
$200,000+ 5,730 12,844 45,797
11Market Overview
Atlanta, GA Atlanta has a metropolitan area that encompasses 29
counties in northwestern Georgia. With few natural barriers to
limit development, tremendous population growth over the past
decade expanded the metro’s borders and the region now has a
population of roughly 5.7 million people. Over the next five years
the region is expected to add nearly 500,000 residents.
Meanwhile, new redevelopment projects in the downtown and
midtown sections of Atlanta present a vast array of housing,
entertainment and retail opportunities that are enticing residents
back into the city and providing options for people moving to the
metro. Encompassing $304 billion, the Atlanta metropolitan area
is the eighth largest economy in this country and 17th-largest in
the world. Over 75 percent of Fortune 1000 companies conduct
business in Atlanta. Many corporations are drawn to Atlanta on
account of the city’s educated workforce. As of 2010 43 percent of
adults in the city have college degrees, compared to 27 percent in
the nation as a whole. Atlanta is home to the headquarters of
many different corporations such as The Coca-Cola Company, The
Home Depot, Delta Air Lines, AT&T Mobility, Chick-fil-A, UPS, and
Newell Rubbermaid among others. Atlanta has a dynamic,
distinctly Southern culture. This is due to a large population of
migrants from other parts of the U.S., in addition to many
recent immigrants to the U.S. who have made the metropolitan
area their home, establishing Atlanta as the cultural and economic
hub of an increasingly multi-cultural metropolitan area. Thus,
although traditional Southern culture is part of Atlanta's cultural
fabric, it is mostly the backdrop to one of the nation's most
cosmopolitan cities. This unique cultural combination reveals itself
in the arts district of Midtown, the quirky neighborhoods on the
city's eastside, and the multi-ethnic enclaves found along Buford
Highway. Atlanta is home to four professional sports teams: the
Atlanta Braves (MLB), the Atlanta Hawks (NBA), the Atlanta
Falcons (NFL), and Atlanta United FC (MLS).
12Glen Kunofsky Edward Otocka James Westerberg Jack Winslow
Glen.Kunofsky@marcusmillichap.com Edward.Otocka@marcusmillichap.com James.Westerberg@marcusmillichap.com John.Winslow@marcusmillichap.com
NY: 10301203289 NY: 10401232117 NY: 10401302501 NY: 10401332843
(O): (212) 430-5115 (O): (212) 430-5235 (O): (646) 805-1449 (O): (646) 805-1412
(M): (516) 477-7026 (M): (203) 921-7155
E XC LU S I V E N E T L EA S E O F F E R I N G
John Leonard
Title: Broker of Record
Marcus & Millichap
1100 Abernathy Rd., N.E. Bldg. 500
Ste. 600
Atlanta, GA 30328
Tel: (678) 808- 2700
Fax: (678) 808-2710
License: 252904You can also read
