620 E 2nd St - Fast Food FOR SALE


Mercedes, TX 78570
$2,131,000 USD
813-387-4760
620 E 2nd St, Mercedes, TX for Sale
$2,131,000 USD
Fast Food - FOR SALE
1/4
null | 6.75% Cap Rate

620 E 2nd St
Mercedes, TX 78570


HIGHLIGHTS

  • Attractive 7.50% Rent Increase Within First 12 Months of Ownership (7.26% Cap)
  • 16 Years Remaining on the Base Term
  • Newly Constructed in 2022 to Sonic’s Latest Prototype Design, Incorporating Updated Branding and a More Efficient Layout
  • Positioned on a Signalized, Hard-Corner Retail Site with Direct Visibility from Interstate 2, Which Carries Approximately 59,000 Vehicles Per Day
  • Strong Surrounding Demographics with 55,000 Residents Within a 5-mile Radius and Projected 4.1% Population Growth by 2030
  • Proven Sonic Franchise Operator with Over 19 Locations Across Four States

OVERVIEW

This offering presents a newly constructed Sonic Drive-In located at 620 E 2nd Street in Mercedes, Texas. Delivered in 2022, the property spans 1,500 square feet on a 0.98-acre parcel and benefits from a 20-year absolute NNN lease with over 16 years remaining. The lease is backed by a personal guarantee from the CEO of Crush Enterprises, an experienced Sonic franchise operator managing multiple locations across four states. Positioned at a signalized corner with direct visibility from Interstate 2, the site sees approximately 59,000 vehicles per day, ensuring strong traffic exposure. The surrounding trade area includes over 55,500 residents within a five-mile radius and benefits from projected population growth. The property is situated just one mile from the Rio Grande Valley Premium Outlets, a regional retail destination attracting over 7 million annual visitors. The tenant is responsible for all building and site maintenance, including roof and structure, offering investors a true zero-landlord-responsibility opportunity. Rent escalates by 7.5% every five years, providing consistent income growth over the lease term. This newly constructed asset represents a rare opportunity to acquire a long-term, passive investment in the Rio Grande Valley corridor—one of South Texas’s most vibrant retail and tourism-driven markets.

FOR SALE DETAILS

PRICE

$2,131,000 USD

PRICE/SF

$1,421 USD /SF

CAP RATE

6.75%

% LEASED

-

TENANCY

Single

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY NAME

Sonic | Mercedes, TX | 7.26% Cap First Year

PROPERTY TYPE

Retail

PROPERTY SUBTYPE

Fast Food

TOTAL BUILDING SIZE

-

STORIES

1

YEAR BUILT

2022

SPRINKLERS

-

PARKING SPACES

80

LAND DETAILS

LAND ACRES

1 AC

LAND SF

43,560 SF

ZONING

C-1

APN/PARCEL ID

S4055-00-000-0001-00

ASK ABOUT THIS PROPERTY

Nicholas BlacklockMarcus & MillichapMore Info
813-387-4760

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Nicholas BlacklockMarcus & MillichapMore Info
813-387-4760

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.