For Sale
$2,800,000

21895 Viking AvePoulsbo, WA 98370

High-traffic Sonic, 13-year lease, strong ROI.

Overview

Added:
Dec 11, 2024
Days on market:
118
This exceptional investment opportunity presents a fee-simple, 2,308 square foot Quick Service Restaurant (QSR) in Poulsbo, Washington. Currently operating as a Sonic, the property boasts a 13-year absolute NNN lease with approximately 12.75 years remaining, offering significant long-term passive income. The lease includes attractive rent increases: 3.70% annually for the first three years, followed by a 10% increase, resulting in a 7.23% cap rate by September 2027. The property is strategically located on Hwy 3, a high-traffic area with over 74,000 vehicles per day, providing excellent visibility and accessibility. Its prime location is further enhanced by proximity to major retailers like Walmart, Home Depot, and Petco, as well as educational institutions and a transit center. The lease is guaranteed by Sortis Income REIT, Inc., a substantial company with over $100 million in assets and $17 million+ in annual net income. A new tenant will be announced in Spring 2024, operating under the same lease terms and guarantee, with renovations planned to coincide with the rebranding. The property sits on a 0.97-acre lot and was built in 2015, undergoing renovations in 2024. The Poulsbo submarket exhibits a robust retail environment, boasting a 3.1% vacancy rate and 15.3% rent growth over the past three years. The asking price is $2,800,000, with a current Net Operating Income (NOI) of $170,785 and a 6.10% cap rate. This presents a rare opportunity in a high-growth, income tax-free state, with a population within a 5-mile radius that has grown over 9% since 2010 and is projected to continue growing.

Highlights

  • 13-year absolute NNN lease with approximately 12.75 years remaining.
  • Annual rent increases of 3.70% for three years, then a 10% increase, yielding a 7.23% cap rate by September 2027.
  • High-traffic location on Hwy 3, exceeding 74,000 vehicles daily, near major retailers like Walmart, Home Depot, and Petco.
  • Lease guaranteed by Sortis Income REIT, Inc., holding over $100 million in assets and generating over $17 million in annual net income.
  • New tenant to be announced Spring 2024, maintaining the existing lease terms and guarantee.
  • Tenant renovations scheduled for Spring 2024.

Property Details for 21895 Viking Ave

Property type
Retail properties
Square Feet
2,308 SF
Year Built/Renovated
2015/2024
Lot Size (sq. ft)
42,253 SF
Units
1

Location Insight

City
Poulsbo
County
Kitsap
State
Washington
Latitude
47.75808588
Longitude
-122.65230719
21895 Viking Ave, Poulsbo, Washington

FAQs

How do I add a non-forward facing team member such as a broker coordinator or broker aide to a listing in order to ensure they get notifications on the property?
Please email our support team at [email protected] and they will add the team member.
How do I access a private listing?
Please contact the broker directly with the information provided on the listing. Once the broker approves your credentials he will make the information public to you.
How can I contact the broker?
We strongly encourage to message the broker through our portal by clicking on the “Envelope” icon next to the brokers photo on the property page. We’ve found brokers response time is much quicker via our messaging portal than phone as brokers are always on the go.
How do I unsubscribe from emails?
At the footer of each email you will find links to Reduce Email Frequency, Adjust Email Settings or Unsubscribe altogether. If you choose to Unsubscribe and are still receiving emails please reach out to us at [email protected].
21895 Viking Ave
Thanks! Your message was sent.
Error! Your message wasn't sent.
Please enter your first name
Please enter your last name
Please enter email
Please enter the email in the correct format
Please enter phone
Please enter the number in the correct format
Select size
Please enter message