The site is part of a 155-acre development by McCarthy RanchCorp. of Milpitas that sits near the confluence of US Route 101 andSR 152, adjacent to two major retail centers. The McCarthydevelopment includes 20 acres of retail called McCarthy RetailCenter with several pad sites fronting SR 152 and, behind that, 135acres of industrial space to be known as McCarthy BusinessCenter.

Nelson tells GlobeSt.com that approximately 55,000 cars pass thesite on Highway 152 every day, providing the Sonic franchisor theopportunity to capture a lot of transient traffic moving betweenthe Central and Silicon valleys. He declined to confirm the valueof the lease, which one industry source put at between $2 millionand $2.5 million.

The McCarthy development is just down the street from GilroyCrossing and Pacheo Pass Plaza, two major retail centers at theconfluence of US Route 101 and SR 152. Anchor tenants at thosecenters include Kohl's, Costco, Lowe's, Best Buy and Wal-Mart.