I found this Jack in the Box deal today on Crexi and wanted to take a deeper dive on why this deal in an 8% cap rate. https://www.jackinthebox.com
Corporate Jack’s usually trades around the 5.5% cap range, but this unit is priced to SELL! This could mean many things, including just a motivated seller who wants to move his/her money out of a deal and into something better. I would need to take a much deeper dive to see what all the facts are, including more information on who the seller is and when they acquired the property to get a full picture. From first glance it seems to have all the things you want to see on one of these deals, including who the anchor is and how the traffic patterns work, as well as, how the land sits in relation to the anchor and its access points for ingress and egress. I do prefer hard corner to in-line lots like this but this pad site directly in front of a Home Depot and looks pretty decent from first view. I would like to know what store sales are compared to the rent of $167,000 a year to get Rent V sales which will help determine if the tenant is going to stay or relocate. The initial term of the lease is up in less than two years therein lays the risk to this investment and why the aggressive cap rate.
I would grade this deal a B- to C+https://www.1031doctor.com
I help high-income professionals-such as doctors, lawyers, and business owners- navigate and analyze NNN investments during a 1031 exchange. On this channel, I break down real deals across the country, including gas stations, fast-food properties, and single-tenant net-leased investments. learn how an industry veteran picks out the red flags and finds the hidden opportunities where most people miss the clues. Subscribe for daily insights, deal breakdowns, and real-world strategies.