6645 Highway 41
Ringgold, GA 30736

FUNDAMENTAL REAL ESTATE VALUE The subject property is situated on a versatile ±1.05 acre parcel that is strategically located less than a mile from Interstate 75. Sonic Drive-In maintains phenomenal visibility along US-41, a 3-lane surface road with a center turning lane that was recently widened. US-41 has strong traffic counts of ±17,000 vehicles per day. The site also benefits from ingress and egress along US-41 and Chapman Road.   FAVORABLE LEASE STRUCTURE Sonic has successfully operated at this location since 2003, and in 2006 signed a 15 year lease. There are currently just under 3.5 years remaining on the initial term, and the tenant has two (2), 5 year renewal options. This investment opportunity is accompanied by an absolute triple-net (NNN) lease with zero landlord responsibilities. The current rent is $97,448.55 which escalates annually by 1.4 percent during the initial term and each renewal option.   STRONG BRAND AWARENESS Established in 1953, Sonic Corp. operates and franchises the chain of drive-thru restaurants (Sonic Drive-Ins) in the United States. As of August 31, 2016, 3,557 Sonic Drive-Ins were in operation from coast to coast in 45 states, consisting of 345 company drive-thrus and 3,212 franchise drive-thrus. The operator at this location, MACH III Enterprises, Inc., is a 31-unit Sonic franchisee with locations throughout North Georgia and Tennessee.   CHATTANOOGA, TN MSA The subject property is located in Ringgold, GA, the county seat of Catoosa County. Ringgold is less than 18 miles south of Chattanooga, TN and part of the Chattanooga MSA. With a total population over 500,000, the Chattanooga MSA has a highly diverse economy with major industry sectors in automotive production, advanced manufacturing, transportation and logistics, food production and insurance services. Some of the top employers include Shaw Industries, BlueCross BlueShield of Tennessee, Amazon.com, Erlanger Health System, and Memorial Health Care System.   VIBRANT TRADE AREA The immediate trade area benefits from a strong population count and household incomes. There are ±16,800 and ±37,055 people within a 3- and 5-mile radius, respectively. Since 2000, the population within a 5-mile radius has grown by 24% and is expected to grow by an additional 7% over the next five years. The average household incomes are ±$70,000 and ±$72,500 within a 3- and 5-mile radius, respectively. Some of the nearby traffic generators include Ingles, Food Lion, Advance Auto Parts, Auto Zone, First Bank of Tennessee, Walgreens, McDonald’s, Hardee’s, Taco Bell, Wendy’s, etc.