For Sale
$29,430,000

74225 Ca-111Palm Desert, CA 92260

Class A mixed-use, 86,835 sq ft, 7% cap rate.

Overview

Added:
Dec 11, 2024
Days on market:
113
One El Paseo Plaza, a premier Class A mixed-use development in Palm Desert, California, presents a unique investment opportunity. This 86,835 square foot property boasts three buildings – two two-story office buildings and a standalone restaurant pavilion – situated on a 5.2-acre lot at the intersection of El Paseo Drive and Highway 111. Built in 2004, the property currently enjoys an 87.3% occupancy rate, with a weighted average remaining lease term of 4.5 years. The tenant roster includes Fortune 500 companies such as Morgan Stanley and Wells Fargo Advisors, along with a diverse mix of local and regional businesses. The property features modern architectural design, granite lobbies, flexible floor plates, and abundant parking (3.5 spaces per 1,000 square feet, including assigned and covered parking). The asking price is $29,430,000, representing a 7.00% cap rate and a price per square foot of $338.92. The property benefits from its strategic location in a high-demand area and is situated within a zoning district that allows for higher density and building height, presenting significant future development potential. The property's current zoning allows for residential uses on upper floors, with ground floor retail, restaurant, service, or office uses required. The Coachella Valley office market is currently experiencing low vacancy rates (6.7%) and a lack of new construction, positioning this property for continued rental growth. This offering provides a significant discount to replacement cost, estimated at over $600 per square foot. Two existing loans totaling $16,429,520 are assumable. The property's strong tenant base, prime location, and future development potential make it an exceptional investment opportunity.

Highlights

  • Class A mixed-use property totaling 86,835 square feet, comprised of three buildings on a 5.2-acre lot in Palm Desert, CA.
  • Assumable debt totaling $16,429,520.
  • Tenants include Fortune 500 companies Morgan Stanley and Wells Fargo Advisors, resulting in a stable, diversified rent roll with a 4.47-year weighted average remaining lease term.
  • Prime location at the intersection of El Paseo Drive and Highway 111 in Palm Desert.
  • Strategic zoning allows for higher density and building height, with potential for residential uses above ground floor commercial space.
  • The only Class A office building in the Coachella Valley, with a low 6.7% vacancy rate and no new construction, ensuring future rental growth.

Property Details for 74225 Ca-111

Property type
Retail properties, Restaurants
Square Feet
86,835 SF
Class
A
Year Built
2004
Buildings
3
Stories
2
Lot Size (sq. ft)
226,512 SF

Location Insight

City
Palm Desert
County
Riverside
State
California
Latitude
33.720805302956
Longitude
-116.36984642901
74225 Ca-111, Palm Desert, California

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74225 Ca-111
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