January 31, 2019 – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm completed the sale of a brand-new, single-tenant Jack in the Box in Fontana, California. The sale price was $2,375,000.
Hanley Investment Group Executive Vice Presidents Kevin Fryman and Bill Asher, along with Vice President Jeff Lefko, represented the seller (developer), Adler Realty Investments, Inc. based in Woodland Hills, California. The buyer, a private investor from the Los Angeles was represented by Edwin Mariscal of Marcus & Millichap.
The new, freestanding Jack in the Box is situated on 0.54 acres at 17020 S. Highland Avenue, at the entrance of the brand new Highland Village shopping center. Adler Realty Investments recently completed the development which is anchored by Sprouts Farmers Market and includes Raising Cane’s Chicken Fingers, Burgerim, Jersey Mike’s, Oggi’s Restaurant, Mountain View Tires, Pacific Dental and Quick Quack Car Wash. The property is immediately adjacent to the 210 Freeway at the Sierra Avenue entrance/exit and has excellent accessibility, identity, and visibility along the 210 freeway.
“We generated multiple competitive offers within two weeks of marketing the property,” said Fryman. “We procured an all-cash, 1031 exchange buyer based in Southern California that closed at 100 percent of the list price.”
“We were able to close escrow 45 days ahead of Jack in the Box’s formal rent commencement date and 150 days prior to the tenant opening for business and construction being completed,” said Asher.
The property enjoys exposure to a high volume of commuters that travel along the 210 Freeway, one of the major east/west freeways connecting California’s San Gabriel Valley and Inland Empire. The average daily traffic count is approximately 119,000 at the Sierra Avenue exit. The freeway visible pylon sign provides outstanding exposure for Jack in the Box by eastbound and westbound traffic, Fryman noted.
Asher added that Highland Village is located directly across the street from the Fontana Promenade, the site of a future new Walmart Supercenter that will drive a tremendous volume of regional traffic to the area.
“The pre-sale of the Jack in the Box ground lease before the tenant was open for business affirms the continued strong demand for single-tenant triple-net quick-serve-restaurant assets in a freeway visible grocery-anchored center,” said Asher. “We expect the single-tenant, quick-serve restaurant sector to continue to see the most transaction velocity and least amount of adjustments in regard to cap rates and values in 2019.”