21895 Viking Ave Poulsbo, WA 98370

Property Details for 21895 Viking Ave

Year built

2015

Lot size

0.97 lot acres

Property size

2,308 SF

Property type

Retail properties

Description

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.

Location Insight

City

Poulsbo

County

Kitsap

State

Washington

Longitude

-122.652

Latitude

47.7581