A private investor from Cypress, CA paid $1.85 mil for a 3.7k sf ($500/sf), single-tenant property that is absolute NNN-leased to a corporate Jack in the Box in Bakersfield. The seller was a Newport Beach-based private investor.
Located at 3002 Ming Ave, Jack in the Box has been the original tenant since the property was developed nearly 50 years ago. The asset features a large monument sign that is visible to more than 41,000 vehicles on a daily basis.
John Redfield, Thomas Chichester, and Joseph Chichester of Faris Lee Investments represented the seller in the deal. The buyer was seeking a passive property offering investment security. The sale closed at a cap rate of 3.99 percent, one of the lowest ever recorded for a Jack in the Box-occupied property nationwide.
“The single-tenant net-leased market is still seeing cap rate compression, especially for well-located, quick serve restaurants featuring corporate name brand tenants like this asset offers. They represent a stable and passive investment for private buyers and family offices that are seeking long-term returns and no landlord responsibilities,” said Tom Chichester.
Chichester added that the property is ideally situated across the street from the successful Valley Plaza Mall, a 1.1 msf retail center, which is the largest and most dominant mall in Central California’s San Joaquin Valley.