Taco Bell Corp., the largest restaurant chain operator based in Orange County, has re-upped the lease for its headquarters in the Spectrum area of Irvine, real estate sources tell the Business Journal.
The company recently completed a long-term deal to remain in the five-story office at 1 Glen Bell Way, which is alongside the Santa Ana (5) Freeway, just off Alton Parkway and next to the year-old Marriott Irvine Spectrum hotel.
The building is 181,482 square feet. The extension for the entire office represents the largest office deal in OC in the past three months by square footage, according to brokerage data.
Financial terms of the deal were not immediately disclosed by Taco Bell or its parent company, Louisville, Ky.-based Yum Brands Inc. (NYSE: YUM).
Other high-end office space in the vicinity carries monthly rents in the $3 per square foot range or higher.
Estimated to employ nearly 600 people at the headquarters and more than 2,800 people in OC, Taco Bell has systemwide sales approaching $10 billion, more than double that of any other restaurant operator based in the county.
It moved into the Irvine building in 2010, and had been operating under a lease due to expire next year.
The interior of the building, toured by the Business Journal earlier this month, is among the more unique spots in OC.
A museum-like display near the entrance showcases the history of Taco Bell and its product evolution.
Digital menu screens are featured prominently in the building, particularly in the company’s art and graphics department.
A “situation room” used by the company’s social media team contains a nearly ceiling-to-floor array of real-time Twitter mentions and other types of Taco Bell references on other social media platforms.
An elaborate test kitchen in the building is used for product shots and advertising work.
Employees have access to a Taco Bell-like company cafeteria that serves its food. Another bistro is also there, for those seeking other food options.
A few improvements to the building—one of the country’s most environmentally friendly designs upon its opening nearly 20 years ago—are expected, sources tell the Business Journal.
Potential changes include a more prominent display of Taco Bell’s first restaurant, which was relocated from Downey to the Irvine property a couple years ago.
2018 Sale
The new lease comes about five months after the Taco Bell building and an adjacent office at 3 Glen Bell Way were acquired by Irvine-based real estate investor LBA Realty LLC.
LBA paid $104 million for the two buildings, which total about 270,000 square feet. The deal worked out to a price of about $385 per square foot.
The seller was Torrance-based Transpacific Development Co., which paid a reported $73 million for them in 2009.
The offices were initially built to be the headquarters of Premier Automotive Group, a unit of Ford Motor Co. that ran the company’s higher-end lines at the time, including Lincoln Mercury, Volvo, Aston Martin and Jaguar.
The two buildings were previously known as One and Three Premier Place.
The street along the buildings were renamed after Taco Bell moved to the location—in honor of Glen Bell Jr., who founded the company in 1962.
Ford Motor still occupies space at 3 Glen Bell Way, but no longer operates the European luxury division there following a series of organizational changes.
Before moving to the Spectrum, Taco Bell was based near John Wayne Airport at 17901 Von Karman Ave., now known as the Oracle Tower and also owned by LBA.
