For Sale
$6,400,000

71722 29 Palms HwyTwentynine Palms, CA 92277

High-yield, 15-year net lease in CA

Overview

Added:
Jan 24
Days on market:
71
This exceptional investment opportunity presents a 16,000 square foot Grocery Outlet, strategically located on 29 Palms Highway in Twentynine Palms, California. The property boasts a 15.1-year net lease (NN+) with a corporate guarantee from a nationally recognized tenant, ensuring consistent cash flow and minimal landlord responsibilities. The lease commenced December 15, 2022, and expires December 31, 2037, featuring built-in rent bumps every five years. The asking price is $6,400,000, representing a compelling 5.50% cap rate with a current net operating income (NOI) of $352,000. Built in 2022, this single-tenant property sits on a 5.38-acre lot, providing ample parking and convenient access for customers. Its high-visibility location benefits from significant traffic volume, drawing from a robust local population, tourism related to nearby Joshua Tree National Park, and the substantial presence of the Marine Corps Air Ground Combat Center (MCAGCC). The property's design and location are well-suited to meet the growing demand for grocery and essential goods in this area, further enhanced by ongoing residential expansion and a reported $150 million retail gap in the market. This is a strong, stable investment with built-in growth potential. The property is offered as a 1031 exchange opportunity.

Highlights

  • $6,400,000 asking price for a 16,000 SF retail property.
  • Net lease with a corporate guarantee from Grocery Outlet.
  • 15.1-year lease term commencing December 15, 2022, with a 5.50% cap rate and $352,000 NOI.
  • Located on 5.38 acres at 71722 29 Palms Hwy, Twentynine Palms, CA 92277, near MCAGCC and Joshua Tree National Park.
  • High-visibility location on 29 Palms Highway with ample parking.
  • Lease includes 10% rent escalations every five years.

Property Details for 71722 29 Palms Hwy

Property type
Retail properties, Retail space
Square Feet
16,000 SF
Year Built
2022
Lot Size (sq. ft)
234,353 SF

Location Insight

City
Twentynine Palms
County
San Bernardino
State
California
Latitude
34.135816900313
Longitude
-116.09819846916
71722 29 Palms Hwy, Twentynine Palms, California

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71722 29 Palms Hwy
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