Staples Anchored Shopping Center in Palm Desert, CA
KevinBoeve
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34 slides
May 02, 2017
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About This Presentation
Offering more than 500 feet of street front retail visibility and easy access from Highway 111, Staples Anchored Shopping Center offers investors an opportunity to purchase a retail investment property in the retail epicenter of the Coachella Valley.
Slide Content
CLICK HERE FOR PROPERTY VIDEO
OFFERING MEMORANDUM
SWC HIGHWAY 111 & MONTEREY AVENUE, PALM DESERT, CA
OFFERING MEMORANDUM
SWC HIGHWAY 111 & MONTEREY AVENUE, PALM DESERT, CA
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any
other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The
recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.
This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or
expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs
or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions
to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and
will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or
completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the
subject property.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Confidentiality Agreement
other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The
recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.
This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or
expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs
or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions
to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and
will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or
completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the
subject property.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
Confidentiality Agreement
Kevin Boeve
Senior Vice President Investments
ONTARIO OFFICE
Tel: (909) 456-3450
[email protected]
CA License: 01247016
Pablo Rodriguez
Senior Associate
ONTARIO OFFICE
Tel: (909) 456-7032
[email protected]
CA License: 01870757
NV License: NV S. 0175422
Jessica Cabrera
Associate
ONTARIO OFFICE
Tel: (909) 456-3457
[email protected]
CA License: 01984467
Joshua Rey
Associate
ONTARIO OFFICE
Tel: (909) 456-7015
[email protected]
CA License: 1776485
PRESENTED BY
Senior Vice President Investments
ONTARIO OFFICE
Tel: (909) 456-3450
[email protected]
CA License: 01247016
Pablo Rodriguez
Senior Associate
ONTARIO OFFICE
Tel: (909) 456-7032
[email protected]
CA License: 01870757
NV License: NV S. 0175422
Jessica Cabrera
Associate
ONTARIO OFFICE
Tel: (909) 456-3457
[email protected]
CA License: 01984467
Joshua Rey
Associate
ONTARIO OFFICE
Tel: (909) 456-7015
[email protected]
CA License: 1776485
PRESENTED BY
TABLE OF CONTENTS
EXECUTIVE SUMMARY
Executive Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Tenant Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Staples in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
FINANCIAL OVERVIEW
Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Rent Roll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Schedule of Prospective Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . 8-9
PROPERTY DESCRIPTION
Parcel Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Site Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Aerial Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14-16
Nearby Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
MARKET OVERVIEW
Palm Desert, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Hotel Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-21
COMPARABLES
Sold Comparables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Junior Box
Lease Comparables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
COMPARABLES
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
EXECUTIVE SUMMARY
Executive Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Tenant Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Staples in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
FINANCIAL OVERVIEW
Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Rent Roll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Schedule of Prospective Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . 8-9
PROPERTY DESCRIPTION
Parcel Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Site Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Aerial Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14-16
Nearby Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
MARKET OVERVIEW
Palm Desert, CA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Hotel Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-21
COMPARABLES
Sold Comparables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Junior Box
Lease Comparables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
COMPARABLES
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
1
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
2
Offering more than 500 feet of street front retail visibility and easy access from Highway 111, Staples An-
chored Shopping Center offers investors an opportunity to purchase a retail investment property in the retail
epicenter of the Coachella Valley. The property is currently 100 percent occupied with 52.17 percent of GLA
by national chain tenant Staples. As part of the larger Palms to Pines Shopping Center, the property benefits
from a strong mix of co-tenants including Rite Aid, Chevron, and 99 Cents Only.
The subject is located at the southwest corner of Highway 111 and Monterey Avenue. Highway 111 is considered
to be one of the most prestigious and high traffic thoroughfares in the Coachella Valley. The property is situ-
ated in the center of the Coachella Valley with ideal proximity to renowned resorts, celebrated gold courses,
and performing arts venues. The center is within walking distance of the Westfield Palm Desert. The regional
shopping mall includes Macy’s, Sears, Hollister Co., Charming Charlie, Gamestop, JcPenney, College of the
Desert, Victoria’s Secret, and many more. The Staples Anchored Shopping Center is within minutes from large
demand generators such as the El Paseo Drive, The College of the Desert, Desert Crossing Shopping Center,
and many more.
The City of Palm Desert is approximately 14 miles east of Palm Springs and 122 miles from Los Angeles. The
region is considered one of the top golf and vacation destinations in the Western United States.
·
·Ease of Management | NNN Leases and Only Seven Tenants
··Above Market Returns | Year One, 6.76 Percent Cash on Cash, 9.6 Percent Total Return, 12.35 Percent IRR
··Significant Visibility With Over 500 Feet of Frontage on Highway 111
··Located Within Close Proximity to Flagship Retail Locations Including Westfield Palm Desert and The
Gardens on El Paseo Drive
··Intersection of Highway 111 and Monterey Avenue Boasts Traffic Counts of More Than 49,000 Cars Per Day
·
·Huge Future Upside in Staples Lease | 40 Percent of Market Rent | 50 Percent of GLA
··Convenient On Site Parking and Access | Offering Five Separate Access Points From El Paseo, Monterey Avenue, and Highway 111
·
·Excellent Demographics With Over 40,000 Residents in a Three-Mile Radius | Average Household In- come Within The Trade Area is $96,547
investment highlights
executive overview
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
2
Offering more than 500 feet of street front retail visibility and easy access from Highway 111, Staples An-
chored Shopping Center offers investors an opportunity to purchase a retail investment property in the retail
epicenter of the Coachella Valley. The property is currently 100 percent occupied with 52.17 percent of GLA
by national chain tenant Staples. As part of the larger Palms to Pines Shopping Center, the property benefits
from a strong mix of co-tenants including Rite Aid, Chevron, and 99 Cents Only.
The subject is located at the southwest corner of Highway 111 and Monterey Avenue. Highway 111 is considered
to be one of the most prestigious and high traffic thoroughfares in the Coachella Valley. The property is situ-
ated in the center of the Coachella Valley with ideal proximity to renowned resorts, celebrated gold courses,
and performing arts venues. The center is within walking distance of the Westfield Palm Desert. The regional
shopping mall includes Macy’s, Sears, Hollister Co., Charming Charlie, Gamestop, JcPenney, College of the
Desert, Victoria’s Secret, and many more. The Staples Anchored Shopping Center is within minutes from large
demand generators such as the El Paseo Drive, The College of the Desert, Desert Crossing Shopping Center,
and many more.
The City of Palm Desert is approximately 14 miles east of Palm Springs and 122 miles from Los Angeles. The
region is considered one of the top golf and vacation destinations in the Western United States.
·
·Ease of Management | NNN Leases and Only Seven Tenants
··Above Market Returns | Year One, 6.76 Percent Cash on Cash, 9.6 Percent Total Return, 12.35 Percent IRR
··Significant Visibility With Over 500 Feet of Frontage on Highway 111
··Located Within Close Proximity to Flagship Retail Locations Including Westfield Palm Desert and The
Gardens on El Paseo Drive
··Intersection of Highway 111 and Monterey Avenue Boasts Traffic Counts of More Than 49,000 Cars Per Day
·
·Huge Future Upside in Staples Lease | 40 Percent of Market Rent | 50 Percent of GLA
··Convenient On Site Parking and Access | Offering Five Separate Access Points From El Paseo, Monterey Avenue, and Highway 111
·
·Excellent Demographics With Over 40,000 Residents in a Three-Mile Radius | Average Household In- come Within The Trade Area is $96,547
investment highlights
executive overview
tenant overview
Staples, Inc. is an American multinational office supply retailing corporation, with over
3,000 locations across the globe, with more than half operating in the United States.
Staples sells supplies which include office machines, promotional products, technol-
ogy, and business services both in stores and online. Staples was founded in 1986
in Brighton, Massachusetts, and has expanded worldwide to 26 countries including
Australia, Brazil, China, France, Germany, India, Portugal, and the United Kingdom.
The very first Revivals store was opened in 1995, in a back corner of the Desert AIDS
Project (D.A.P.) office, on Vella Road. The funds raised through selling donated goods
at Revivals have gone back to support client services at D.A.P., while also providing
a great volunteer opportunity for those who wanted to support the organization with
their time and retail talents.
Today, all of the stores are largely volunteer-run, enabling Revivals to make a signifi-
cant financial contribution to the annual budget of Desert AIDS Project. Thus, earning
a national reputation as one of the most comprehensive HIV/AIDS service providers
in the U.S.
company overview
Type Public
Traded As NASDAQ: SPLS
Industry Retail
Number of Locations 3,856 Stores
Number of Employees 44,000+
Revenue $22.4 Billion
Market Locations 50 US States; 26 Countries
Headquarters Framingham, MA
Website www.staples.com
company overview
Type Private
Number of Locations 3
Website www.revivalstores.com
3
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
Staples, Inc. is an American multinational office supply retailing corporation, with over
3,000 locations across the globe, with more than half operating in the United States.
Staples sells supplies which include office machines, promotional products, technol-
ogy, and business services both in stores and online. Staples was founded in 1986
in Brighton, Massachusetts, and has expanded worldwide to 26 countries including
Australia, Brazil, China, France, Germany, India, Portugal, and the United Kingdom.
The very first Revivals store was opened in 1995, in a back corner of the Desert AIDS
Project (D.A.P.) office, on Vella Road. The funds raised through selling donated goods
at Revivals have gone back to support client services at D.A.P., while also providing
a great volunteer opportunity for those who wanted to support the organization with
their time and retail talents.
Today, all of the stores are largely volunteer-run, enabling Revivals to make a signifi-
cant financial contribution to the annual budget of Desert AIDS Project. Thus, earning
a national reputation as one of the most comprehensive HIV/AIDS service providers
in the U.S.
company overview
Type Public
Traded As NASDAQ: SPLS
Industry Retail
Number of Locations 3,856 Stores
Number of Employees 44,000+
Revenue $22.4 Billion
Market Locations 50 US States; 26 Countries
Headquarters Framingham, MA
Website www.staples.com
company overview
Type Private
Number of Locations 3
Website www.revivalstores.com
3
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
4
staples in the news
Staples’ Q4 and full-year 2016 results highlight its evolution into a North American-focused B2B delivery-oriented reseller.
Following the sell-off of its operations in Europe and the decision to sell most of its other international operations, Staples has renewed its reporting structure to align with its
20/20 strategic plan. The plan defines mid-market as business customers with 10 to 200 employees. For Staples to compete for B2B sales, the company’s ante will be a deep
assortment, competitive pricing, with reliable and flexible delivery; therefore, enabling it to compete against a broad set of competitors such as Amazon.
There are two reporting units - North American Delivery (NAD) and North American Retail (NAR). North American Delivery comprises of Staples Business Advantage, the
key growth unit identified in the 20/20 plan, including staples.com, staples.ca and Quill. North American Retail focuses on just in-store sales, without the online components.
International operations in China, Taiwan, Australia and South America are classified as ‘Other’ operations. The sold European operations are now reported as discontinued
and not included in the figures below.
Staples’ Strategy Accelerating
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
4
staples in the news
Staples’ Q4 and full-year 2016 results highlight its evolution into a North American-focused B2B delivery-oriented reseller.
Following the sell-off of its operations in Europe and the decision to sell most of its other international operations, Staples has renewed its reporting structure to align with its
20/20 strategic plan. The plan defines mid-market as business customers with 10 to 200 employees. For Staples to compete for B2B sales, the company’s ante will be a deep
assortment, competitive pricing, with reliable and flexible delivery; therefore, enabling it to compete against a broad set of competitors such as Amazon.
There are two reporting units - North American Delivery (NAD) and North American Retail (NAR). North American Delivery comprises of Staples Business Advantage, the
key growth unit identified in the 20/20 plan, including staples.com, staples.ca and Quill. North American Retail focuses on just in-store sales, without the online components.
International operations in China, Taiwan, Australia and South America are classified as ‘Other’ operations. The sold European operations are now reported as discontinued
and not included in the figures below.
Staples’ Strategy Accelerating
2
FINANCIAL OVERVIEW
FINANCIAL OVERVIEW
FINANCIAL OVERVIEW
financial overview
pricing
Property Name Staples Anchored Shopping Center
Property Address 72811-72885 Highway 111 & 72825-72880 El Paseo
Palm Desert, CA
Price $9,500,000
Cap Rate 7.46%
Down Payment $4,166,435
Price Per Square Foot $215.69
Gross Leasable Area 44,044 SF
Lot Size 3.08 Acres
Year Built/ Renovated 1973/ 2005
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
6
expenses
Property Taxes $95,000
Insurance $7,890
Management Fee $35,490
Electric & Gas $12,600
Water & Sewer $6,000
Trash Removal $9,000
Landscaping $22,700
Sweeping $3,600
Plumbing $2,400
Security $3,600
Pest Control $3,000
Parking Lot $300
Window Washing $4,800
Lighting $1,816
Common Areas $8,400
Total Operating Expenses $216,596annual operating data
Potential Gross Revenue
Base Rental Revenue $714,754
Scheduled Base Rental Revenue $714,754
Total Reimbursement Revenue $210,843
Total Potential Gross Revenue $925,597
Effective Gross Revenue $1,540,916
Net Operating Income $709,001
Debt Service $427,140
Cash Flow $281,861 (6.76%)
Principal Reduction $118,000
Total Return $399,861 (9.6%)
Leveraged IRR 12.35%
financing
Existing Loan Amount $5,333,565
Interest Rate 5.85%
Amortization 25 Years
Value $9,500,000
Due Date 2023
Note: Financing must be assumed.
financial overview
pricing
Property Name Staples Anchored Shopping Center
Property Address 72811-72885 Highway 111 & 72825-72880 El Paseo
Palm Desert, CA
Price $9,500,000
Cap Rate 7.46%
Down Payment $4,166,435
Price Per Square Foot $215.69
Gross Leasable Area 44,044 SF
Lot Size 3.08 Acres
Year Built/ Renovated 1973/ 2005
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
6
expenses
Property Taxes $95,000
Insurance $7,890
Management Fee $35,490
Electric & Gas $12,600
Water & Sewer $6,000
Trash Removal $9,000
Landscaping $22,700
Sweeping $3,600
Plumbing $2,400
Security $3,600
Pest Control $3,000
Parking Lot $300
Window Washing $4,800
Lighting $1,816
Common Areas $8,400
Total Operating Expenses $216,596annual operating data
Potential Gross Revenue
Base Rental Revenue $714,754
Scheduled Base Rental Revenue $714,754
Total Reimbursement Revenue $210,843
Total Potential Gross Revenue $925,597
Effective Gross Revenue $1,540,916
Net Operating Income $709,001
Debt Service $427,140
Cash Flow $281,861 (6.76%)
Principal Reduction $118,000
Total Return $399,861 (9.6%)
Leveraged IRR 12.35%
financing
Existing Loan Amount $5,333,565
Interest Rate 5.85%
Amortization 25 Years
Value $9,500,000
Due Date 2023
Note: Financing must be assumed.
rent roll
7
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
SuiteTenant GLA % of GLALease CommenceLease ExpireAnnual RentRent/SFOptions Increases Lease Type
72-811Staples 22,954 SF 52.17% 3/2002 2/2022 $235,000 $10.24 One, Five-Year Option15-Year CPI or 110% IncreaseNNN
Notes: Tenant has two, five-year options each at the greater of i) 15-year CPI, or ii) 110% increase.
72-885Revivals 14,400 SF 32.69% 4/2016 7/2022 $285,120 $19.80 Two, Five-Year Options3% Increases NNN
72-820Back Street Bistro1,308 SF 2.97% 8/1998 7/2020 $80,436 $19.10 Two, Five-Year Options3% Increases NNN
Notes: Tenant has two, five-year options, the first at 3% annual increases and the second at FMV.
72-840Guillermo’s 4,212 SF 9.56% 1/2004 7/2019 $80,436 $19.10 Two, Five-Year OptionsFMV NNN
Notes: Tenant has two, five-year options at FMV.
72-870Cingular Wireless360 SF 0.82% 1/2000 12/2029 $38,490 $106.92 Three, Five-Year Options103% Increases None
Notes: Tenant has three, five-year automatic options at 103% increase.
72-880Caldo 810 SF 1.84% 2/2006 7/2017 $20,629 $25.47 One, Three-Year OptionsFMV or 3% Increase NNN
Notes: Tenant has one, three-year option at the greater of i) FMV or ii) 3% increase.
ROOF Verizon Wireless100 SF 0.23% 9/2016 8/2056 $24,000 $240.00 Four, Five-Year Options10% Increases None
Notes: Tenant has four, five-year options with 10% increases every five years.
1 Parcel 1 23,944 SF 54.36% 9/2016 8/2046 NN
This Suite is modeled for the purposes of Expense Reimbursement only.
3 Parcel 3 21,440 SF 48.68% 9/2016 8/2046 NN
This Suite is modeled for the purposes of Expense Reimbursement only.
Total Vacant0 SF 0.00%
Total Occupied44,044 SF 100.0% $695,334 $15.79
Total 44,044 SF 100.00% $695,334 $15.79
Weighted-Average Lease Term Remaining5.32 Years
Weighted-Average Lease Term Lapsed:9.77 Years
Weighted-Average Lease Term From Inception:15.08 Years
7
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
SuiteTenant GLA % of GLALease CommenceLease ExpireAnnual RentRent/SFOptions Increases Lease Type
72-811Staples 22,954 SF 52.17% 3/2002 2/2022 $235,000 $10.24 One, Five-Year Option15-Year CPI or 110% IncreaseNNN
Notes: Tenant has two, five-year options each at the greater of i) 15-year CPI, or ii) 110% increase.
72-885Revivals 14,400 SF 32.69% 4/2016 7/2022 $285,120 $19.80 Two, Five-Year Options3% Increases NNN
72-820Back Street Bistro1,308 SF 2.97% 8/1998 7/2020 $80,436 $19.10 Two, Five-Year Options3% Increases NNN
Notes: Tenant has two, five-year options, the first at 3% annual increases and the second at FMV.
72-840Guillermo’s 4,212 SF 9.56% 1/2004 7/2019 $80,436 $19.10 Two, Five-Year OptionsFMV NNN
Notes: Tenant has two, five-year options at FMV.
72-870Cingular Wireless360 SF 0.82% 1/2000 12/2029 $38,490 $106.92 Three, Five-Year Options103% Increases None
Notes: Tenant has three, five-year automatic options at 103% increase.
72-880Caldo 810 SF 1.84% 2/2006 7/2017 $20,629 $25.47 One, Three-Year OptionsFMV or 3% Increase NNN
Notes: Tenant has one, three-year option at the greater of i) FMV or ii) 3% increase.
ROOF Verizon Wireless100 SF 0.23% 9/2016 8/2056 $24,000 $240.00 Four, Five-Year Options10% Increases None
Notes: Tenant has four, five-year options with 10% increases every five years.
1 Parcel 1 23,944 SF 54.36% 9/2016 8/2046 NN
This Suite is modeled for the purposes of Expense Reimbursement only.
3 Parcel 3 21,440 SF 48.68% 9/2016 8/2046 NN
This Suite is modeled for the purposes of Expense Reimbursement only.
Total Vacant0 SF 0.00%
Total Occupied44,044 SF 100.0% $695,334 $15.79
Total 44,044 SF 100.00% $695,334 $15.79
Weighted-Average Lease Term Remaining5.32 Years
Weighted-Average Lease Term Lapsed:9.77 Years
Weighted-Average Lease Term From Inception:15.08 Years
For the Years Ending
Year 1
July 2018
Year 2
July 2019
Year 3
July 2020
Year 4
July 2021
Year 5
July 2022
Year 6
July 2023
Year 7
July 2024
Year 8
July 2025
Year 9
July 2026
Year 10
July 2027
Potential Gross Revenue
Base Rental Revenue $714,754 $737,020 $763,066 $773,108 $786,228 $795,457 $809,971 $824,027 $836,438 $857,245
Scheduled Base Rental Revenue $714,754 $737,020 $763,066 $773,108 $786,228 $795,457 $809,971 $824,027 $836,438 $857,245
Expense Reimbursement Revenue
Property Taxes $92,476 $93,495 $94,223 $94,223 $94,223 $94,223 $94,223 $94,223 $94,223 $94,223
Insurance $7,681 $7,766 $7,826 $7,826 $7,826 $7,826 $7,826 $7,826 $7,826 $7,826
Management Fee $34,547 $34,928 $35,200 $35,200 $35,200 $35,200 $35,200 $35,200 $35,200 $35,200
Electric & Gas $12,266 $12,401 $12,498 $12,498 $12,497 $12,498 $12,498 $12,498 $12,498 $12,498
Water & Sewer $5,841 $5905 $5,951 $5,951 $5,950 $5,951 $5,951 $5,951 $5,951 $5,951
Trash Removal $8,761 $8,858 $8,927 $8,927 $8,926 $8,927 $8,927 $8,927 $8,927 $8,927
Landscaping $22,097 $22,341 $22,514 $22,514 $22,513 $22,514 $22,514 $22,514 $22,514 $22,514
Sweeping $3,504 $3,543 $3,570 $3570 $3,570 $3,570 $3,570 $3,570 $3,570 $3,570
Plumbing $2,337 $2,363 $2,381 $2,381 $2,380 $2,381 $2,381 $2,381 $2,381 $2,381
Security $3,504 $3,542 $3,570 $3,570 $3,570 $3,570 $3,570 $3,570 $3,570 $3,570
Pest Control $2,920 $2,952 $2,975 $2,975 $2,975 $2,975 $2,975 $2,975 $2,975 $2,975
Parking Lot $292 $295 $298 $298 $298 $298 $298 $298 $298 $298
Window Washing $4,673 $4,724 $4,761 $4,761 $4,762 $4,761 $4,761 $4,761 $4,761 $4,761
Lighting $1,768 $1,787 $1,801 $1,801 $1,800 $1,801 $1,801 $1,801 $1,801 $1,801
Common Areas $8,176 $8,266 $8,330 $8,330 $8,329 $8,330 $8,330 $8,330 $8,330 $8,330
Total Reimbursement Revenue $210,843 $213,167 $214,825 $214,825 $214,819 $214,825 $214,825 $214,825 $214,825 $214,825
Total Potential Gross Revenue $925,597 $950,187 $977,891 $987,933 $1,001,047$1,010,282 $1,024,796 $1,038,852 $1,051,263 $1,072,070
Effective Gross Revenue $1,540,916 $1,565,227 $1,592,604 $1,620,796 $1,695,301 $1,741,743 $1,769,490 $1,797,570 $1,826,498 1,896,556
Operating Expenses
Property Taxes $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000
Insurance $7,890 $7,890 $7,890` $7,890 $7,890 $7,890 $7,890 $7,890 $7,890 $7,890
Management Fee $35,490 $35,490 $35,490 $35,490 $35,490 $35,490 $35,490 $35,490 $35,490 $34,490
Electric & Gas $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600
Water & Sewer $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Trash Removal $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000
Landscaping $22,700 $22,700 $22,700 $22,700 $22,700 $22,700 $22,700 $22,700 $22,700 $22,700
Sweeping $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Plumbing $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
Security $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Pest Control $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Parking Lot $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Window Washing $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Lighting $1,816 $1,816 $1,816 $1,816 $1,816 $1,816 $1,816 $1,816 $1,816 $1,816
Common Areas $8,400
$8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400
Total Operating Expenses $216,596 $216,596 $216,596 $216,596 $216,596 $216,596 $216,596 $216,596 $216,596 $216,596
Net Operating Income $709,001 $733,591 $761,295 $771,337 $784,451 $793,686 $808,200 $822,256 $834,667 $855,474
schedule of prospective cash flow
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
8
Year 1
July 2018
Year 2
July 2019
Year 3
July 2020
Year 4
July 2021
Year 5
July 2022
Year 6
July 2023
Year 7
July 2024
Year 8
July 2025
Year 9
July 2026
Year 10
July 2027
Potential Gross Revenue
Base Rental Revenue $714,754 $737,020 $763,066 $773,108 $786,228 $795,457 $809,971 $824,027 $836,438 $857,245
Scheduled Base Rental Revenue $714,754 $737,020 $763,066 $773,108 $786,228 $795,457 $809,971 $824,027 $836,438 $857,245
Expense Reimbursement Revenue
Property Taxes $92,476 $93,495 $94,223 $94,223 $94,223 $94,223 $94,223 $94,223 $94,223 $94,223
Insurance $7,681 $7,766 $7,826 $7,826 $7,826 $7,826 $7,826 $7,826 $7,826 $7,826
Management Fee $34,547 $34,928 $35,200 $35,200 $35,200 $35,200 $35,200 $35,200 $35,200 $35,200
Electric & Gas $12,266 $12,401 $12,498 $12,498 $12,497 $12,498 $12,498 $12,498 $12,498 $12,498
Water & Sewer $5,841 $5905 $5,951 $5,951 $5,950 $5,951 $5,951 $5,951 $5,951 $5,951
Trash Removal $8,761 $8,858 $8,927 $8,927 $8,926 $8,927 $8,927 $8,927 $8,927 $8,927
Landscaping $22,097 $22,341 $22,514 $22,514 $22,513 $22,514 $22,514 $22,514 $22,514 $22,514
Sweeping $3,504 $3,543 $3,570 $3570 $3,570 $3,570 $3,570 $3,570 $3,570 $3,570
Plumbing $2,337 $2,363 $2,381 $2,381 $2,380 $2,381 $2,381 $2,381 $2,381 $2,381
Security $3,504 $3,542 $3,570 $3,570 $3,570 $3,570 $3,570 $3,570 $3,570 $3,570
Pest Control $2,920 $2,952 $2,975 $2,975 $2,975 $2,975 $2,975 $2,975 $2,975 $2,975
Parking Lot $292 $295 $298 $298 $298 $298 $298 $298 $298 $298
Window Washing $4,673 $4,724 $4,761 $4,761 $4,762 $4,761 $4,761 $4,761 $4,761 $4,761
Lighting $1,768 $1,787 $1,801 $1,801 $1,800 $1,801 $1,801 $1,801 $1,801 $1,801
Common Areas $8,176 $8,266 $8,330 $8,330 $8,329 $8,330 $8,330 $8,330 $8,330 $8,330
Total Reimbursement Revenue $210,843 $213,167 $214,825 $214,825 $214,819 $214,825 $214,825 $214,825 $214,825 $214,825
Total Potential Gross Revenue $925,597 $950,187 $977,891 $987,933 $1,001,047$1,010,282 $1,024,796 $1,038,852 $1,051,263 $1,072,070
Effective Gross Revenue $1,540,916 $1,565,227 $1,592,604 $1,620,796 $1,695,301 $1,741,743 $1,769,490 $1,797,570 $1,826,498 1,896,556
Operating Expenses
Property Taxes $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000 $95,000
Insurance $7,890 $7,890 $7,890` $7,890 $7,890 $7,890 $7,890 $7,890 $7,890 $7,890
Management Fee $35,490 $35,490 $35,490 $35,490 $35,490 $35,490 $35,490 $35,490 $35,490 $34,490
Electric & Gas $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600 $12,600
Water & Sewer $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000
Trash Removal $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000
Landscaping $22,700 $22,700 $22,700 $22,700 $22,700 $22,700 $22,700 $22,700 $22,700 $22,700
Sweeping $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Plumbing $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400
Security $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Pest Control $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Parking Lot $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Window Washing $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Lighting $1,816 $1,816 $1,816 $1,816 $1,816 $1,816 $1,816 $1,816 $1,816 $1,816
Common Areas $8,400
$8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400
Total Operating Expenses $216,596 $216,596 $216,596 $216,596 $216,596 $216,596 $216,596 $216,596 $216,596 $216,596
Net Operating Income $709,001 $733,591 $761,295 $771,337 $784,451 $793,686 $808,200 $822,256 $834,667 $855,474
schedule of prospective cash flow
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
8
schedule of prospective cash flow
9
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
For the Years Ending
Year 1
July 2018
Year 2
July 2019
Year 3
July 2020
Year 4
July 2021
Year 5
July 2022
Year 6
July 2023
Year 7
July 2024
Year 8
July 2025
Year 9
July 2026
Year 10
July 2027
Debt Service
Interest Payments $303,102 $296,887 $290,299 $283,314 $275,910 $268,061 $259,740 $250,920 $241,569 $231,656
Principal Payments $103,420 $109,635 $116,224 $123,208 $130,612 $138,461 $146,782 $155,603 $164,954 $174,866
Total Debt Service $406,522 $406,522 $406,523 $406,522 $406,522 $406,522 $406,522 $406,523 $406,523 $406,522
CASH FLOW AFTER DEBT SERVICE $302,479 $327,069 $354,772 $364,815 $377,929 $387,164 $401,678 $415,733 $428,144 $448,952
Leveraged Cash on Cash Return
Cash to Initial Equity 7.08% 7.66% 8.30% 8.54% 8.85% 9.06% 9.40% 9.73% 10.02% 10.51%
Leveraged Annual IRR 1.77% 9.91% 10.94% 11.56% 11.71% 11.94% 12.06% 12.08% 12.21% 12.35%
Outstanding Debt Retirement
Total Principal Balances ($5,124,711)($5,015,076)($4,898,853)($4,775,635)($4,645,032)($4,506,572)($4,359,789)($4,204,186)($4,039,232)($3,864,366)
Notes: Tenant, Revivals, is assumed to exercise its two, five-year options, the first at 3 percent annual increases and the second at FMV with 3 percent annual increases assumed thereafter.
9
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
For the Years Ending
Year 1
July 2018
Year 2
July 2019
Year 3
July 2020
Year 4
July 2021
Year 5
July 2022
Year 6
July 2023
Year 7
July 2024
Year 8
July 2025
Year 9
July 2026
Year 10
July 2027
Debt Service
Interest Payments $303,102 $296,887 $290,299 $283,314 $275,910 $268,061 $259,740 $250,920 $241,569 $231,656
Principal Payments $103,420 $109,635 $116,224 $123,208 $130,612 $138,461 $146,782 $155,603 $164,954 $174,866
Total Debt Service $406,522 $406,522 $406,523 $406,522 $406,522 $406,522 $406,522 $406,523 $406,523 $406,522
CASH FLOW AFTER DEBT SERVICE $302,479 $327,069 $354,772 $364,815 $377,929 $387,164 $401,678 $415,733 $428,144 $448,952
Leveraged Cash on Cash Return
Cash to Initial Equity 7.08% 7.66% 8.30% 8.54% 8.85% 9.06% 9.40% 9.73% 10.02% 10.51%
Leveraged Annual IRR 1.77% 9.91% 10.94% 11.56% 11.71% 11.94% 12.06% 12.08% 12.21% 12.35%
Outstanding Debt Retirement
Total Principal Balances ($5,124,711)($5,015,076)($4,898,853)($4,775,635)($4,645,032)($4,506,572)($4,359,789)($4,204,186)($4,039,232)($3,864,366)
Notes: Tenant, Revivals, is assumed to exercise its two, five-year options, the first at 3 percent annual increases and the second at FMV with 3 percent annual increases assumed thereafter.
3
PROPERTY DESCRIPTION
PROPERTY DESCRIPTION
PROPERTY DESCRIPTION
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
12
parcel overview
location
72-811 CA-111
Palm Desert, CA 92260
site
The subject property has frontage along Highway 111, Monterey Avenue, and El Paseo
square footage
The building square footage is 44,044-square feet and the lot size is 3.08 acres.
year built
The property was built in 1970. The center was renovated in 1990 and 2007.
traffic counts
Intersection of Highway 111 and Monterey Avenue boasts traffic counts of over
49,000 cars per day.
El Paseo
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
12
parcel overview
location
72-811 CA-111
Palm Desert, CA 92260
site
The subject property has frontage along Highway 111, Monterey Avenue, and El Paseo
square footage
The building square footage is 44,044-square feet and the lot size is 3.08 acres.
year built
The property was built in 1970. The center was renovated in 1990 and 2007.
traffic counts
Intersection of Highway 111 and Monterey Avenue boasts traffic counts of over
49,000 cars per day.
El Paseo
13
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
SuiteTenant GLA
72-811Staples 22,954 SF
72-885Revivals 14,400 SF
72-820Backstreet Bistro1,308 SF
72-840Guillermo’s 4,212 SF
72-870Cingular Wireless360 SF
72-880Caldo 810 SF
ROOF Verizon Wireless 100 SF
1 Parcel 1 23,944 SF
3 Parcel 3 21,440 SF
Total Occupied 44,044 SF
Total 44,044 SF
Highway 111 - 35,612 CPD
Plaza Way - 5,421 CPD
El Paseo - 9,821 CPD
Monterey Avenue
GUILLERMO’S Backstreet
BistroCALDO
N.A.P.
N.A.P.
N.A.P.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
SuiteTenant GLA
72-811Staples 22,954 SF
72-885Revivals 14,400 SF
72-820Backstreet Bistro1,308 SF
72-840Guillermo’s 4,212 SF
72-870Cingular Wireless360 SF
72-880Caldo 810 SF
ROOF Verizon Wireless 100 SF
1 Parcel 1 23,944 SF
3 Parcel 3 21,440 SF
Total Occupied 44,044 SF
Total 44,044 SF
Highway 111 - 35,612 CPD
Plaza Way - 5,421 CPD
El Paseo - 9,821 CPD
Monterey Avenue
GUILLERMO’S Backstreet
BistroCALDO
N.A.P.
N.A.P.
N.A.P.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
14
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
14
15
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
Desert Crossing Shopping Center
Largest Powercenter in Coachella Valley
Occupancy: 81% (49,980 SF vacant big box - rent of $2.00 psf/mo)
GLA: 516,000 Square Feet
Town Center Square Shopping Center
Bump & Grind Trail
71,000 Visitors Use Trail Annually
Westfield Palm Desert Mall
Only Enclosed Mall in Coachella Valley
Occupancy: 96%
GLA: 918,000 Square Feet
Students: 10,000+
Hotel Paseo
Upcoming Four Star Hotel
- 152 Rooms -
Gardens
on El Paseo
Residential
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
Desert Crossing Shopping Center
Largest Powercenter in Coachella Valley
Occupancy: 81% (49,980 SF vacant big box - rent of $2.00 psf/mo)
GLA: 516,000 Square Feet
Town Center Square Shopping Center
Bump & Grind Trail
71,000 Visitors Use Trail Annually
Westfield Palm Desert Mall
Only Enclosed Mall in Coachella Valley
Occupancy: 96%
GLA: 918,000 Square Feet
Students: 10,000+
Hotel Paseo
Upcoming Four Star Hotel
- 152 Rooms -
Gardens
on El Paseo
Residential
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
16
El Paseo
Most Luxurious Shopping Destination in
Coachella Valley
Retailers Include:
St. John
Gucci
Burberry
Louis Vuitton
Saks
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
16
El Paseo
Most Luxurious Shopping Destination in
Coachella Valley
Retailers Include:
St. John
Gucci
Burberry
Louis Vuitton
Saks
5
miles
1
mile
3
miles
Staples
5001 Ramon Road, Palm Springs, CA
Distance: 10 Miles
Staples - Subject Property
72-811 CA-111, Palm Desert, CA
Staples
78-860 CA-111, Palm Desert, CA
Distance: 7 Miles
Office Depot
5601 E Ramon Road, Palm Springs, CA
Distance: 10 Miles
1
2
53
4
3
5
2
1
4
nearby office supply retail competition
The nearest office supply retail store is six miles away from the subject property. Unlike the subject property, the competitors are less than a mile away
from a nearby office supply retail.
1 MILE3 MILES5 MILES
2016 Population 4,41041,70071,291
2016 Households 2,16920,44535,879
2016 Daytime Population 5,96728,18643,955
2016 Average Household Income$72,751$88,088$96,548
Office Depot
79-190 CA-111, Palm Springs, CA
Distance: 6 Miles
17
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
miles
1
mile
3
miles
Staples
5001 Ramon Road, Palm Springs, CA
Distance: 10 Miles
Staples - Subject Property
72-811 CA-111, Palm Desert, CA
Staples
78-860 CA-111, Palm Desert, CA
Distance: 7 Miles
Office Depot
5601 E Ramon Road, Palm Springs, CA
Distance: 10 Miles
1
2
53
4
3
5
2
1
4
nearby office supply retail competition
The nearest office supply retail store is six miles away from the subject property. Unlike the subject property, the competitors are less than a mile away
from a nearby office supply retail.
1 MILE3 MILES5 MILES
2016 Population 4,41041,70071,291
2016 Households 2,16920,44535,879
2016 Daytime Population 5,96728,18643,955
2016 Average Household Income$72,751$88,088$96,548
Office Depot
79-190 CA-111, Palm Springs, CA
Distance: 6 Miles
17
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
4
MARKET OVERVIEW
MARKET OVERVIEW
Highway 111 is a state highway. It is the main north/south state highway
and retail corridor through the Coachella Valley. It runs from the U.S-
Mexico border crossing to Interstate 10 at White Water. Highway 111 links
virtually every desert resort city in the Coachella Valley.
Annual Cars Per Year: 13.5 Million
HIGHWAY 111
area overview
Palm Desert
Palm Desert is the geographic center of the Coachella Valley, a fast-growing region of Southern California that
comprises nine cities. Palm Desert has evolved into a vibrant small city that today is the educational, retail, and
cultural hub of the Valley. Whether you go there to spend a weekend or a lifetime, you’ll never run out of things to
explore – including plenty of free activities. With an abundance of resources available to residents, Palm Desert is
also a great place to call home.
Palm Desert is approximately 14 miles east of Palm Springs and 122 miles east of Los Angeles. Major employers
of the city is JW Marriot Desert Springs Gold Resort, Universal Protection Services, Guthy-Renker, Walmart, Macy’s,
and Marriott Desert Springs Villas.
Distance To From Property
43,400+
Employees
67,620+
Residents
(Within Five- Mile Radius of Subject Property)
9,950+
Enrolled Students
(College of the Desert)
34,000+
Households
(Within Five- Mile Radius of Subject Property)
$98,017
Average Household Income
$1.6B
Total Economic Impact
Browse your favorite luxury labels and chic boutiques, savor gourmet cui-
sine by the Coachella Valley’s top chefs, and wander through an array of
art galleries set against a scenic backdrop in this gem, tucked in the heart
of Palm Desert. The street has 250-plus retailers including top interna-
tional retailers such as St. John, Gucci, and Burberry, Louis Vuitton, Saks,
and many more.
EL PASEO DRIVE
Palm Springs
23 Minute Drive
Los Angeles
2 Hour Drive
San Diego
2 Hour, 20 Min Drive
Newport Beach
2 Hour Drive
19
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
and retail corridor through the Coachella Valley. It runs from the U.S-
Mexico border crossing to Interstate 10 at White Water. Highway 111 links
virtually every desert resort city in the Coachella Valley.
Annual Cars Per Year: 13.5 Million
HIGHWAY 111
area overview
Palm Desert
Palm Desert is the geographic center of the Coachella Valley, a fast-growing region of Southern California that
comprises nine cities. Palm Desert has evolved into a vibrant small city that today is the educational, retail, and
cultural hub of the Valley. Whether you go there to spend a weekend or a lifetime, you’ll never run out of things to
explore – including plenty of free activities. With an abundance of resources available to residents, Palm Desert is
also a great place to call home.
Palm Desert is approximately 14 miles east of Palm Springs and 122 miles east of Los Angeles. Major employers
of the city is JW Marriot Desert Springs Gold Resort, Universal Protection Services, Guthy-Renker, Walmart, Macy’s,
and Marriott Desert Springs Villas.
Distance To From Property
43,400+
Employees
67,620+
Residents
(Within Five- Mile Radius of Subject Property)
9,950+
Enrolled Students
(College of the Desert)
34,000+
Households
(Within Five- Mile Radius of Subject Property)
$98,017
Average Household Income
$1.6B
Total Economic Impact
Browse your favorite luxury labels and chic boutiques, savor gourmet cui-
sine by the Coachella Valley’s top chefs, and wander through an array of
art galleries set against a scenic backdrop in this gem, tucked in the heart
of Palm Desert. The street has 250-plus retailers including top interna-
tional retailers such as St. John, Gucci, and Burberry, Louis Vuitton, Saks,
and many more.
EL PASEO DRIVE
Palm Springs
23 Minute Drive
Los Angeles
2 Hour Drive
San Diego
2 Hour, 20 Min Drive
Newport Beach
2 Hour Drive
19
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
20
hotel paseo (distance: one mile from Staples)
PALM DESERT, Calif. - Construction on a four star hotel in the El Paseo shopping district in Palm Desert is well underway and
small businesses are looking forward to the possibility of having new customers. Hotel Paseo is going to be the first major
upscale hotel built near the high-end shopping center. Construction began a few months ago and now builders are planning on
opening five months ahead of when originally planned.
The $36 million four star hotel will have 152 rooms along with a spa and 24-hour room service. The hotel will not be owned by
a national brand, but will be a part of the Marriott’s Autograph Collection; therefore people will be able to book rooms through
the Marriott website.
El Paseo business owner and longtime Palm Desert Planning Commissioner Sonia Campbell said the hotel is a much-needed
complement to the high-end shopping district many dub as “Rodeo Drive of the Desert.” It is hoped the increased foot traffic
from the hotel will also encourage retailers to stay open later, something the city and shoppers have long sought.
Hotel Paseo will feature a pool, spa, dining, ballroom and meeting rooms along with valet and underground parking and 24-hour
room service. Operating under the Marriott Autograph Collection allows guests to earn and redeem Marriott rewards.
Indian Wells-based Watkins Landmark Construction will build the hotel, which was designed by Gene Fong Associates of
Westwood. Hotel development is being funded through the federal EB-5 Immigrant Investment Program, which offers visas to
investors willing to invest in job-creating businesses.
Hotel Paseo
Four Star Hotel
- 152 Rooms -
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
20
hotel paseo (distance: one mile from Staples)
PALM DESERT, Calif. - Construction on a four star hotel in the El Paseo shopping district in Palm Desert is well underway and
small businesses are looking forward to the possibility of having new customers. Hotel Paseo is going to be the first major
upscale hotel built near the high-end shopping center. Construction began a few months ago and now builders are planning on
opening five months ahead of when originally planned.
The $36 million four star hotel will have 152 rooms along with a spa and 24-hour room service. The hotel will not be owned by
a national brand, but will be a part of the Marriott’s Autograph Collection; therefore people will be able to book rooms through
the Marriott website.
El Paseo business owner and longtime Palm Desert Planning Commissioner Sonia Campbell said the hotel is a much-needed
complement to the high-end shopping district many dub as “Rodeo Drive of the Desert.” It is hoped the increased foot traffic
from the hotel will also encourage retailers to stay open later, something the city and shoppers have long sought.
Hotel Paseo will feature a pool, spa, dining, ballroom and meeting rooms along with valet and underground parking and 24-hour
room service. Operating under the Marriott Autograph Collection allows guests to earn and redeem Marriott rewards.
Indian Wells-based Watkins Landmark Construction will build the hotel, which was designed by Gene Fong Associates of
Westwood. Hotel development is being funded through the federal EB-5 Immigrant Investment Program, which offers visas to
investors willing to invest in job-creating businesses.
Hotel Paseo
Four Star Hotel
- 152 Rooms -
montage & pendry la quinta (the growth & demand in the region)
21
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
LA QUINTA, Calif. - Luxury hotel company, Montage International, will be the operator for the
two planned SilverRock hotels in La Quinta.
The first Coachella Valley Montage hotel development and the agreement reached with Sil-
verRock developer, Encinitas-based The Robert Green Co., creates a partnership in which the
Montage also brings its Pendry brand to the same location.
Montage La Quinta will be a 140-room five-star quality, luxury hotel and La Quinta Pendry a
200-room luxury hotel.
Montage has hotels in Beverly Hills, Deer Valley, Kapalua Bay, Laguna Beach and Palmetto
Bluff and another is set to open in Los Cabos in 2018.
The first Pendry, developed by Green, opened in San Diego just last month and a Baltimore
site is set to open later this month. Others are planned in West Hollywood, New York and other
locations, Fuerstman said.
SilverRock – 525 acres of vacant land nestled within the Santa Rosa Mountains – was pur-
chased by the city’s redevelopment agency in 2002 with a vision of bringing a first-class golf
resort to La Quinta.
The resort, with its planned luxury and lifestyle hotels, 62,000-square-foot convention center
and residential, commercial, retail and recreational features, is expected to bring La Quinta
more than $50 million in additional revenue over the first 15 years, starting this year as de-
velopers pull permits. A second 18-hole golf course is also planned – adding to an 18-hole
course already there – based on need.
Montage La Quinta plans include a signature Spa Montage and fitness center along with
multi-generational recreation center, resort pool and the brand’s signature Paintbox children’s
program. There will be 29 four- and five-bedroom Montage residences with access to all of
the resort’s services and amenities as well.
Pendry La Quinta plans also include a fitness center with access to Spa Montage, resort pool
and retail boutiques. There will also be 66 two- and three-bedroom Pendry Residences with
access to all Pendry services and amenities.
21
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
LA QUINTA, Calif. - Luxury hotel company, Montage International, will be the operator for the
two planned SilverRock hotels in La Quinta.
The first Coachella Valley Montage hotel development and the agreement reached with Sil-
verRock developer, Encinitas-based The Robert Green Co., creates a partnership in which the
Montage also brings its Pendry brand to the same location.
Montage La Quinta will be a 140-room five-star quality, luxury hotel and La Quinta Pendry a
200-room luxury hotel.
Montage has hotels in Beverly Hills, Deer Valley, Kapalua Bay, Laguna Beach and Palmetto
Bluff and another is set to open in Los Cabos in 2018.
The first Pendry, developed by Green, opened in San Diego just last month and a Baltimore
site is set to open later this month. Others are planned in West Hollywood, New York and other
locations, Fuerstman said.
SilverRock – 525 acres of vacant land nestled within the Santa Rosa Mountains – was pur-
chased by the city’s redevelopment agency in 2002 with a vision of bringing a first-class golf
resort to La Quinta.
The resort, with its planned luxury and lifestyle hotels, 62,000-square-foot convention center
and residential, commercial, retail and recreational features, is expected to bring La Quinta
more than $50 million in additional revenue over the first 15 years, starting this year as de-
velopers pull permits. A second 18-hole golf course is also planned – adding to an 18-hole
course already there – based on need.
Montage La Quinta plans include a signature Spa Montage and fitness center along with
multi-generational recreation center, resort pool and the brand’s signature Paintbox children’s
program. There will be 29 four- and five-bedroom Montage residences with access to all of
the resort’s services and amenities as well.
Pendry La Quinta plans also include a fitness center with access to Spa Montage, resort pool
and retail boutiques. There will also be 66 two- and three-bedroom Pendry Residences with
access to all Pendry services and amenities.
5
COMPARABLES
COMPARABLES
COMPARABLES
recently sold
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
24
Property Name & AddressSales PriceCap RatePrice/SFGLA
Year Built/
RenovatedClose of Escrow
Subject Property:
Staples Anchored Shopping Center
SWC Highway 111 & Monterey Avenue
Palm Desert, CA
$9,500,000 7.46% $215.6944,044 SF1973/2005 N/A
Coachella Plaza
50259 Harrison Street
Coachella, CA
$10,600,000 6.93% $144.6673,277 SF1991/ 2014 8/2016
Cap rate is based on stabilized cap rate as vacant space is behind anchors and is considered “storage” space and not retail.
Sunrise Center
100 S Sunrise Way
Palm Springs, CA
$10,200,000 6.86% $207.9049,062 SF 1985 4/2015
Big 5 Anchored retail center purchased by private local investor in an exchange. Property was 100 percent occupied at the time of sale.
1585 West Redlands Boulevard
Redlands, CA
$5,640,000 6.39% $246.0722,920 SF 1983 12/2016
Anchor included Fresh & Easy at the time of sale which has since closed. Purchaser was private buyer in an exchange that intends on holding
asset long term.
San Luis Rey Plaza
73705 El Paseo
Palm Desert, CA
$11,857,500 5.85% $373.69 31,731 SF 1981 11/2016
Property was 95 percent occupied by financial and banking tenants.
Upland Village
110 South Mountain Avenue
Upland, CA
$17,200,000 5.83% $283.6360,857 SF 1972 12/2016
Grocery Outlet and Dollar Tree anchored shopping center in high traffic location near Interstate 10 and Mountain in Upland, CA.
The Shops at Bear Valley
13605 Bear Valley Road
Victorville, CA
$9,900,000 5.63% $310.5431,880 SF 2009 11/2015
100 percent occupied center purchased by investor who is selling off individual parcels which include a McDonalds Ground Lease, a US Bank
and a multi-tenant strip building.
Average Price/SF $261.08
Average CAP Rate 6.25%
recently sold
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
24
Property Name & AddressSales PriceCap RatePrice/SFGLA
Year Built/
RenovatedClose of Escrow
Subject Property:
Staples Anchored Shopping Center
SWC Highway 111 & Monterey Avenue
Palm Desert, CA
$9,500,000 7.46% $215.6944,044 SF1973/2005 N/A
Coachella Plaza
50259 Harrison Street
Coachella, CA
$10,600,000 6.93% $144.6673,277 SF1991/ 2014 8/2016
Cap rate is based on stabilized cap rate as vacant space is behind anchors and is considered “storage” space and not retail.
Sunrise Center
100 S Sunrise Way
Palm Springs, CA
$10,200,000 6.86% $207.9049,062 SF 1985 4/2015
Big 5 Anchored retail center purchased by private local investor in an exchange. Property was 100 percent occupied at the time of sale.
1585 West Redlands Boulevard
Redlands, CA
$5,640,000 6.39% $246.0722,920 SF 1983 12/2016
Anchor included Fresh & Easy at the time of sale which has since closed. Purchaser was private buyer in an exchange that intends on holding
asset long term.
San Luis Rey Plaza
73705 El Paseo
Palm Desert, CA
$11,857,500 5.85% $373.69 31,731 SF 1981 11/2016
Property was 95 percent occupied by financial and banking tenants.
Upland Village
110 South Mountain Avenue
Upland, CA
$17,200,000 5.83% $283.6360,857 SF 1972 12/2016
Grocery Outlet and Dollar Tree anchored shopping center in high traffic location near Interstate 10 and Mountain in Upland, CA.
The Shops at Bear Valley
13605 Bear Valley Road
Victorville, CA
$9,900,000 5.63% $310.5431,880 SF 2009 11/2015
100 percent occupied center purchased by investor who is selling off individual parcels which include a McDonalds Ground Lease, a US Bank
and a multi-tenant strip building.
Average Price/SF $261.08
Average CAP Rate 6.25%
junior box lease comparables
Property Name & Address GLA Rent PSF/YrTenant Type
Commencement
DateLease Term
Staples
72811 Highway 111
Palm Desert, CA
22,954 SF $10.94 Anchor Tenant 3/1/2002 5 Years
Staples just excercised their option. Location is directly across from the Westfield Mall.
Revivals
72885 Highway 111
Palm Desert, CA
14,400 SF $19.80 Anchor Tenant 4/1/0216 10 Years
Revivals has three locations in the Coachella Valley. Their lease at this location has 3 percent annual increases.
Stein Mart
78945 Highway 111
La Quinta, CA
36,000 SF $13.79 Anchor Tenant 1/1/2004 15 Years
Stein Mart has 278 stores and is publicly traded (SMRT Nasdaq). This location is in the Washington Park Shopping Center.
Trader Joes
44100 Town Center Way
Palm Desert, CA
9,800 SF $27.00 Grocer 3/1/2004 15 Years
Trader Joes has been at this location since 2004 with co-tenants including Michaels and Tuesday Morning.
TJ Maxx
78825 Highway 111
Palm Desert, CA
11,400 SF $16.20 Junior Anchor Tenant9/1/2014 10 Years
TJ Maxx took second generation space at the Washington Park Power Center in La Quinta.
Burgers and Beer
79785 Highway 111
La Quinta, CA
9.951 SF $12.00 Regional Restaurant1/1/2011 11 Years
Burgers and Beer took space off Highway 111 with no street visibility near the Costco in La Quinta.
Flooring Innovations Sublease
74527 Highway 111
Palm Desert, CA
15,798 SF $19.08 Drug Store Ground
Lease
1/1/2006 11 Years
Master ground lease with CVS (Built as a Long Drugs) and subleased by a local flooring company. The property has high visibility at Deep Canyon and
Highway 111.
Average Rents $16.73
25
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
Property Name & Address GLA Rent PSF/YrTenant Type
Commencement
DateLease Term
Staples
72811 Highway 111
Palm Desert, CA
22,954 SF $10.94 Anchor Tenant 3/1/2002 5 Years
Staples just excercised their option. Location is directly across from the Westfield Mall.
Revivals
72885 Highway 111
Palm Desert, CA
14,400 SF $19.80 Anchor Tenant 4/1/0216 10 Years
Revivals has three locations in the Coachella Valley. Their lease at this location has 3 percent annual increases.
Stein Mart
78945 Highway 111
La Quinta, CA
36,000 SF $13.79 Anchor Tenant 1/1/2004 15 Years
Stein Mart has 278 stores and is publicly traded (SMRT Nasdaq). This location is in the Washington Park Shopping Center.
Trader Joes
44100 Town Center Way
Palm Desert, CA
9,800 SF $27.00 Grocer 3/1/2004 15 Years
Trader Joes has been at this location since 2004 with co-tenants including Michaels and Tuesday Morning.
TJ Maxx
78825 Highway 111
Palm Desert, CA
11,400 SF $16.20 Junior Anchor Tenant9/1/2014 10 Years
TJ Maxx took second generation space at the Washington Park Power Center in La Quinta.
Burgers and Beer
79785 Highway 111
La Quinta, CA
9.951 SF $12.00 Regional Restaurant1/1/2011 11 Years
Burgers and Beer took space off Highway 111 with no street visibility near the Costco in La Quinta.
Flooring Innovations Sublease
74527 Highway 111
Palm Desert, CA
15,798 SF $19.08 Drug Store Ground
Lease
1/1/2006 11 Years
Master ground lease with CVS (Built as a Long Drugs) and subleased by a local flooring company. The property has high visibility at Deep Canyon and
Highway 111.
Average Rents $16.73
25
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
6
DEMOGRAPHICS
DEMOGRAPHICS
1 MILE
3 MILES
5 MILES
xxxii27
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
1 MILE 3 MILES 5 MILES
2016 Population 4,410 41,700 71,291
2016 Households 2,169 20,445 35,879
2016 Average Household Size 2.16 2.03 2.01
2016 Daytime Population 5,967 28,186 43,955
2016 Owner Occupied Housing Units51.20% 64.22% 70.16%
2016 Renter Occupied Housing Units48.80% 35.78% 29.87%
2016 Median Household Income $41,706 $49,490 $54,412
2016 Per Capita Income $35,979 $43,316 $48,682
2016 Average Household Income $72,751 $88,088 $96,548
3 MILES
5 MILES
xxxii27
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
1 MILE 3 MILES 5 MILES
2016 Population 4,410 41,700 71,291
2016 Households 2,169 20,445 35,879
2016 Average Household Size 2.16 2.03 2.01
2016 Daytime Population 5,967 28,186 43,955
2016 Owner Occupied Housing Units51.20% 64.22% 70.16%
2016 Renter Occupied Housing Units48.80% 35.78% 29.87%
2016 Median Household Income $41,706 $49,490 $54,412
2016 Per Capita Income $35,979 $43,316 $48,682
2016 Average Household Income $72,751 $88,088 $96,548
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
28
Demographic data © 2016 by Experian/Applied Geographic
5-mile radius of property
population
In 2016, the population in the area was 71,290. The population has changed by
19.31 percent since 2000. It is estimated that the population in the area will be
75,814 five years from now, which represents a change of 6.34 percent from the
currernt year. The current population is 48.15 percent male and 51.84 percent
female. The median age of the population in the area is 58.0; compare this to
the entire U.S. average which is 37.3. The population density in the area is 907.62
people per square mile.
households
There are currently 35,879 households in the area. The number of households
has changed by 24.11 percent since 2000. It is estimated that the number of
households in the area will be 38,506 five years from now, which represents a
change of 7.32 percent from the current year. The average household size in the
area is 2.00 persons.
income
In 2016, the median household income for the area was $54,411; The entire U.S.
average is currently $51,972. The median household income for the area has
changed by 10.07 percent since 2000. It is estimated that the median household
income in the area will be $64,547 five years from now, which represents a change
of 19.29 percent from the current year.
The current year per capita income in the area is $48,682; The entire U.S. average
is $28,599. The current year average household income in the area is $96,547;
compare this to the entire U.S. average is $74,533.
race & ethnicity
The current year racial makeup of the area is: 84.69 percent White, 1.39 percent Black,
0.07 percent Native American and 3.02 percent Asian/Pacific Islander. Compare these
to Entire US averages which are: 71.60 percent White, 12.70 percent Black, 0.18 percent
Native American and 5.02 percent Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of Hispanic origin
make up 20.83 percent of the current year population in the selected area. The entire
US average is 17.13 percent.
housing
In 2000, there were 21,276 owner occupied housing units in the area and 7,631 renter
occupied housing units. The median rent at the time was $636.
employment
In 2016, there were 43,955 employees in the area, this is also known as the daytime
population. The 2000 Census revealed that 66.02 percent of employees are employed
in white-collar occupations in this geography, and 33.63 percent are employed in blue-
collar occupations. In 2016, unemployment in this area was 7.25 percent. In 2000, the
average time traveled to work was 20.9 minutes.
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
ACT ID Y0080254
28
Demographic data © 2016 by Experian/Applied Geographic
5-mile radius of property
population
In 2016, the population in the area was 71,290. The population has changed by
19.31 percent since 2000. It is estimated that the population in the area will be
75,814 five years from now, which represents a change of 6.34 percent from the
currernt year. The current population is 48.15 percent male and 51.84 percent
female. The median age of the population in the area is 58.0; compare this to
the entire U.S. average which is 37.3. The population density in the area is 907.62
people per square mile.
households
There are currently 35,879 households in the area. The number of households
has changed by 24.11 percent since 2000. It is estimated that the number of
households in the area will be 38,506 five years from now, which represents a
change of 7.32 percent from the current year. The average household size in the
area is 2.00 persons.
income
In 2016, the median household income for the area was $54,411; The entire U.S.
average is currently $51,972. The median household income for the area has
changed by 10.07 percent since 2000. It is estimated that the median household
income in the area will be $64,547 five years from now, which represents a change
of 19.29 percent from the current year.
The current year per capita income in the area is $48,682; The entire U.S. average
is $28,599. The current year average household income in the area is $96,547;
compare this to the entire U.S. average is $74,533.
race & ethnicity
The current year racial makeup of the area is: 84.69 percent White, 1.39 percent Black,
0.07 percent Native American and 3.02 percent Asian/Pacific Islander. Compare these
to Entire US averages which are: 71.60 percent White, 12.70 percent Black, 0.18 percent
Native American and 5.02 percent Asian/Pacific Islander.
People of Hispanic origin are counted independently of race. People of Hispanic origin
make up 20.83 percent of the current year population in the selected area. The entire
US average is 17.13 percent.
housing
In 2000, there were 21,276 owner occupied housing units in the area and 7,631 renter
occupied housing units. The median rent at the time was $636.
employment
In 2016, there were 43,955 employees in the area, this is also known as the daytime
population. The 2000 Census revealed that 66.02 percent of employees are employed
in white-collar occupations in this geography, and 33.63 percent are employed in blue-
collar occupations. In 2016, unemployment in this area was 7.25 percent. In 2000, the
average time traveled to work was 20.9 minutes.
Kevin Boeve
Senior Vice President Investments
ONTARIO OFFICE
Tel: (909) 456-3450
[email protected]
CA License: 01247016
Pablo Rodriguez
Senior Associate
ONTARIO OFFICE
Tel: (909) 456-7032
[email protected]
CA License: 01870757
NV License: NV S. 0175422
Jessica Cabrera
Associate
ONTARIO OFFICE
Tel: (909) 456-3457
[email protected]
CA License: 01984467
Joshua Rey
Associate
ONTARIO OFFICE
Tel: (909) 456-7015
[email protected]
CA License: 1776485
PRESENTED BY
Senior Vice President Investments
ONTARIO OFFICE
Tel: (909) 456-3450
[email protected]
CA License: 01247016
Pablo Rodriguez
Senior Associate
ONTARIO OFFICE
Tel: (909) 456-7032
[email protected]
CA License: 01870757
NV License: NV S. 0175422
Jessica Cabrera
Associate
ONTARIO OFFICE
Tel: (909) 456-3457
[email protected]
CA License: 01984467
Joshua Rey
Associate
ONTARIO OFFICE
Tel: (909) 456-7015
[email protected]
CA License: 1776485
PRESENTED BY
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