Sonic ground lease for sale in the Columbus MSA

1. NET LEASED INVESTMENT OFFERING
Sonic (Ground Lease)
3290 Olentangy River Road
Columbus, OH 43202
www.bouldergroup.com

2. TABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
TABLE OF CONTENTS
1) Confidentiality & Disclaimer
2) Executive Summary
3) Property Overview
4) Aerial
5) Site Plan
6) Map
7) Tenant Profile
8) Demographic Comparison Report
9) Location Overview
10) Contact Information
www.bouldergroup.com

3. CONFIDENTIALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
CONFIDENTIALITY
CONFIDENTIALITY & DISCLAIMER
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is
intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to
any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been
prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary
level of interest in the subject property. The information contained herein is not a substitute for a thorough due
diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or
representation. The information contained in this Offering Memorandum has been obtained from sources we
believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information
contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no
warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All
potential buyers must take appropriate measures to verify all of the information set forth herein.
www.bouldergroup.com

4. EXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant Sonic restaurant ground lease property located
in Columbus, Ohio. The property is located on a 51,199 square foot parcel in front of a free standing Kohl’s store and
adjacent to a 182-unit apartment complex. The Ohio State University campus is less than one-half mile from the property,
home to over 64,000 students and employs over 27,000 people. Additionally, Riverside Methodist Hospital, the largest
member hospital of OhioHealth healthcare system, is located one-quarter mile north of the property. The lease features a
10% rental escalation in November 2018.
The property is located along Olentangy River Road, a primary north-south thoroughfare in the area which travels south
through the Ohio State University campus. Olentangy River Road runs parallel to Olentangy Freeway, which experiences
traffic volumes in excess of 71,000 vehicles per day creating constant traffic near the site. There are numerous national
retailers along Olentangy River Road including Kohl’s, Kroger, Big Lots and PNC Bank. There are multiple hotels within the
immediate area including Hilton Garden Inn, Holiday Inn Express and Fairfield Marriott Inn, which provide the closest
lodging to the university. The University of Ohio State campus and numerous student housing apartments are located less
than one-half mile from the property, and the population is in excess of 311,000 within five miles of the property.
Sonic’s original ground lease term was for 15 years and expires in October 2023 and has a 10% escalation in November
2018. The ground lease features three 5-year renewal options with 10% rental escalations. Sonic is a publicly traded
company on the NASDAQ (SONC) and Houchens Industries inc. is a multi-billion dollar private company.
INVESTMENT HIGHLIGHTS
• Tenant’s parent company, Houchens Industries inc., has
annual revenue of $3 billion
• Located within the Columbus MSA
• 10% rental escalation in the primary term in 2018 and in
each renewal option
• Zero landlord responsibilities
• Less than one-half mile from Ohio State University campus
(64,000 students)
• One-quarter mile from Riverside Methodist Hospital
• Nearby retailer include Kohl’s, Kroger, Big Lots and PNC Bank
• Located on the hard corner of a signalized intersection
• Close proximity to numerous hotels (closest lodging to the
university)
• Less than two miles from Interstate 71 (54,625 VPD)
• Over 311,000 people living within five miles of the property
www.bouldergroup.com

5. PROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $964,615
Cap Rate: 6.50%
Rent Schedule: NOI Escalation Date
$ 62,700 1
$ 68,970 11/1/2018
$ 75,867 11/1/2023 (Option 1)
$ 83,454 11/1/2028 (Option 2)
$ 91,799 11/1/2033 (Option 3)
Renewal Options: Three 5-year
Lease Commencement Date: November 1, 2008
Lease Expiration Date: October 31, 2023
Tenant: Sonic
Guarantor: Houchens Restaurants, LLC 2
Year Built 2008
Lease Type: NNN Ground Lease
Rentable Square Feet: 1,620
Land Size: 1.17 acres
(1) Seller will pay the differential between the current rent of $57,000, until the rent
escalates in November 2013 to $62,700.
(2) Houchens Restaurants LLC’s parent company, Houchens Industries, inc., has annual
revenue of $3 billion.
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6. AERIAL
NET LEASED INVESTMENT OFFERING
AERIAL
www.bouldergroup.com

7. SITE PLAN
NET LEASED INVESTMENT OFFERING
SITE PLAN
www.bouldergroup.com

8. MAP
NET LEASED INVESTMENT OFFERING
MAP
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9. TENANT PROFILE
NET LEASED INVESTMENT OFFERING
TENANT PROFILE
Sonic (NASDAQ: SONC) is an American drive-in fast-food restaurant chain based in Oklahoma City, Oklahoma. In
2011, Sonic was ranked number 10 of the top 50 quick-service and fast-casual restaurant brands in the United
States by QSR Magazine. Sonic operates over 3,500 restaurants in 43 U.S. states and serves over 3 million
customers per day. Sonic is known for their unique use of carhops on roller skates serving their drive-in customers.
Houchens Restaurants, LLC is the operator and guarantees the lease. Houchens Restaurants, LLC is a wholly owned
subsidiary of Houchens Industries, inc. Houchens Industries, inc. was founded in 1917 and is now among the largest
100% employee-owned companies in the United States. Houchens has businesses in retail grocery and convenience
stores, quick-to-service restaurants, insurance, stock brokerage and several others businesses operating in over 30
countries, including over 30 Sonic restaurants. Houchens Industries is ranked in the top 200 of America’s largest
private companies and has revenue of nearly $3 billion annually. Today, Houchens Industries is wholly owned by its
16,000 employees and is headquartered in Bowling Green, Kentucky.
Sonic: www.sonicdrivein.com
Number of Locations: 3,561
Stock Symbol: SONC (NASDAQ)
Houchens Industries, inc www.houchensindustries.com
Number of Employees: 16,000+
www.bouldergroup.com

10. DEMOGRAPHIC COMPARISON REPORT
NET LEASED INVESTMENT OFFERING
DEMOGRAPHIC COMPARISON REPORT
Population 1-mi. 3-mi 5-mi
Total Population 14,290 147,554 311,660
Total Households 7,156 63,349 135,509
Income
Median Household Income $39,798 $39,370 $39,492
Average Household Income $53,276 $57,530 $57,982
www.bouldergroup.com

11. LOCATION OVERVIEW
NET LEASED INVESTMENT OFFERING
LOCATION OVERVIEW
Columbus is the largest city in the state of Ohio and the county seat of Franklin
County. At the time of the 2010 U.S. Census Columbus had a population of 787,000,
making it the most populous city in Ohio. Columbus has a diverse economy based on
education, government, insurance, banking and energy. Columbus is most notably
home to The Ohio State University. The Ohio State University is one of the world’s
largest universities with a student population of over 64,000. Columbus has also
emerged as a leader in the technology industry and is home to the world’s largest
private research and development foundation, Battelle Memorial Institute. In 2009,
BusinessWeek named Columbus the best place in the country to raise a family.
Additionally, Columbus was ranked as America’s 20th best city by Bloomberg
BusinessWeek.
Columbus is home to five Fortune 500 corporations including Nationwide Mutual Insurance Company, American
Electric Power, Limited Brands, Momentive Specialty Chemicals and Big Lots. Other major employers in Columbus
include JP Morgan Chase, Huntington Bancshares and Wendy’s. Columbus is most recognized as the home to The
Ohio State University. Ohio State University is one of the largest universities in the world with a student population of
over 64,000 and over 27,000 employees.
www.cityofcolumbus.org
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12. CONTACT INFORMATION
NET LEASED INVESTMENT OFFERING
CONTACT INFORMATION
666 Dundee Road Suite 1801
Northbrook, IL 60062
Randy Blankstein Jimmy Goodman
President Partner
847.562.0003 847.562.8500
rblank@bouldergroup.com jimmy@bouldergroup.com
www.bouldergroup.com