420 Merhar Ave Fairbanks, AK 99701-3166

Property Details for 420 Merhar Ave

Year built

2006

Lot size

0.92 lot acres

Property size

3,530 SF

Property type

Commercial real estate

APN

575038

APU

575038

Description

This exceptional investment opportunity presents a fee-simple, 3,530 square-foot Sonic Drive-In located in Fairbanks, Alaska. The property boasts a strong 7% cap rate and a substantial net operating income (NOI) of $159,141. Situated on a nearly one-acre lot (0.92 acres) in a prime retail corridor alongside major national retailers like Walmart, Lowe's, Home Depot, and PETCO, this single-tenant, absolute NNN leased property offers exceptional visibility along Johansen Expy (nearly 20,000 vehicles per day). The lease, commencing August 31, 2020, and expiring August 30, 2030, has approximately 5.8 years remaining, with attractive 1.5% annual rent bumps built in, beginning August 31, 2025, and two 5-year lease options at 1.5% each. The tenant, a credit-rated franchisee, ensures consistent income. Built in 2006, this one-story building is currently 100% occupied and significantly outperforms average unit sales volume for Sonic. The asking price is $2,273,440, translating to $644.03 per square foot. This is a rare opportunity to acquire a high-performing, established QSR property in a thriving Alaskan market. The property's size is typical for QSR restaurants, ensuring operational efficiency.