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Grocery Outlet, Desert Hot Springs, CA

Grocery Outlet

Price $8,016,000
Cap Rate 5.00%
NOI $400,800
Lease Term 15 Years
Lease Type Net, with Tenant Responsible for All Taxes, Insurance, Maintenance, and Repair, Excluding Structural Portions of the Premises
Rental Increases 10% Rental Increases Every Five Years
Year Built 2020
Building Size 20,000 SF
Lot Size 2.09 Acres (91,250 SF)
Status Available
Lead Broker Information Ryan Forsyth
Cushman & Wakefield
415.413.3005
ryan.forsyth@cushwake.com
CA RE License #01716551

Vincent Aicale
Cushman & Wakefield
415.690.5522
vince.aicale@cushwake.com
CA RE License #01728696

Michael T. Yuras, CCIM
Cushman & Wakefield
415.481.0788
michael.yuras@cushwake.com
CA RE License #01823291

Scott Crowle
Senior Director
415.604.4288
scott.crowle@cushwake.com
CA RE License #01318288

Investment Highlights

LONG-TERM NET LEASE TO STRONG GROCERY TENANT
» 15-year Net lease with four (4) five (5)-year option periods
» Net lease provides an ideal passive investment for an out-of-area investor
» 10% rental increases every five years, providing a hedge against inflation
» Grocery Outlet is the nation’s largest extreme value grocery retailer, with more than 320+ locations and over $2.29 billion in annual revenue
» Grocery Outlet is continuing its expansion nationally, with over 30 new stores opened in 2019

HIGH-VISIBILITY LOCATION ALONG MAJOR DESERT HOT SPRINGS THOROUGHFARE
» High visibility location on Palm Drive, a prominent Desert Hot Springs corridor with access to 27,907 vehicles per day directly in front of the property
» Beneficial proximity to high-traffic Desert Hot Springs thoroughfares, including Interstate 10 (94,000 AADT) and Two Bunch Palms Trail (11,841 AADT)
» 44,813 residents within a five-mile radius of the location
» Projected 12 percent AAHI increase within five miles of the site in the next five years, poising Desert Hot Springs and Grocery Outlet for significant concurrent growth

CENTRAL LOCATION NEAR LARGE EMPLOYERS, COMMUNITY HUBS, AND TOURIST ATTRACTIONS
» Surrounded by several high-profile national retailers, including Vons, McDonald’s, Starbucks, Del Taco, Pizza Hut, Walgreens, Dollar General, KFC, and many more
» Centrally located in the Palm Springs Unified School District (combined 23,000 students, 2,000 administrators)
» Beneficial proximity to several popular California tourist attractions, including Palm Springs (1 million annual visitors) and Joshua Tree National Forest (3 million annual visitors)
» Gateway to Los Angeles (50 million annual visitors, $36.6 billion in tourist revenue)

NEW 2020 CONSTRUCTION
» High-quality, new construction completed in 2020
» Features latest Grocery Outlet store design and concepts



Property Description

The property is strategically located on Palm Drive, a high-visibility site along one of Desert Hot Springs’ most prominent corridors, with access to 27,907 vehicles per day directly in front of the location. The site also resides near other high-traffic Desert Hot Springs thoroughfares, including Interstate 10 (94,000 AADT) and Two Bunch Palms Trail (11,841 AADT). Visibility is increased by the site’s location in a densely populated area, with 44,813 residents living within a five-mile radius of the location. The property is primed to grow along with the surrounding area, with a projected 12 percent average annual household income increase within five miles of the site in the next five years.

Centrally located in Desert Hot Springs, the property is close to important community amenities, large employers, and popular recreational areas. The site is surrounded by several high-profile national retailers, including Vons, McDonald’s, Starbucks, Del Taco, Pizza Hut, Walgreens, Dollar General, KFC, and many more. The property is located in the heart of the Palm Springs Unified School District, which features a combined 23,000 students and 2,000 administrators. The property maintains a beneficial proximity to several popular California tourist attractions, including Palm Springs (1 million annual visitors) and Joshua Tree National Forest (3 million annual visitors). Additionally, the site also serves as a common gateway to Los Angeles, which experiences 50 million annual visitors and generates approximately $36 billion in tourist revenue.

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