OC Jack in the Box Trades for Record $1,374/sf

Originally Published: Real Estate News Television

A 2.8k sf, single-tenant retail property fully occupied by Jack in the Box in Mission Viejo has sold for $3.79 mil, which works out to $1,374/sf, the highest price per square foot for a Jack in the Box-occupied asset in Southern California over the last 12 months, per Costar.

Built in 1979 and scheduled to be renovated in the near future, the property is situated on .42 acres at 28651 Marguerite Pkwy, at the major intersection with Avery Pkwy. Jack in the Box recently signed a lease extension for 15 years and has been a tenant at the location for more than 35 years.

Patrick Luther, Matthew Mousavi and Terrison Quinn with SRS’ National Net Lease Group represented the seller, Irvine-based Pacific Castle. The buyer, a Hawaii-based investor, was repped by Arthur Flores of CBRE. The closing cap rate was 4.5%.

“This was a rare opportunity for an investor to own a well-located Jack in the Box property in the affluent south Orange County market of Mission Viejo,” said Mousavi. “The buyer appreciated the new long-term absolute triple net lease extension and the fact that there are no landlord responsibilities, making for a stable, cash-flowing investment within a master-planned community.”

The property is located just off the 5 freeway with direct on/off ramp access, and excellent freeway frontage. It is within a major retail corridor and is one mile from The Shops at Mission Viejo which totals more than 1.1 msf of retail space with anchor tenants including Nordstrom, Macy’s, and Apple, among others. The site is also one mile from Mission Hospital.