Hanley Investment Group has arranged the sale of a newly built multi-tenant retail pad at Monterey Crossing, a newly developed shopping center at the Interstate 10 and Monterey Avenue interchange in Palm Desert, California.
The sale price was US $6.34 million, with the transaction marking the fifth retail pad building the real estate advisory firm has sold at Monterey Crossing, totaling a combined 25,430 square feet and approximately US $27 million.
Hanley Investment Group Executive Vice Presidents Bill Asher and Jeff Lefko represented the developer and seller, Fountainhead Development of Newport Beach, California, in all five retail investment transactions.
Built in 2022, the most recent transaction related to a fully leased 8,370 sqft multi-tenant retail pad building on 1.18 acres situated at the hard corner signalized intersection of Monterey Avenue and Dinah Shore Drive in Palm Desert.
Previous sales at Monterey Crossing facilitated by Hanley Investment Group include two brand new, single-tenant ground leased pads to Chick-fil-A Drive-Thru and Quick Quack Car Wash, a brand new, single-tenant net-leased investment The Habit Burger Grill with a drive-thru, along with a two-tenant pad building occupied by AT&T and Spectrum. All four properties were sold to four separate buyers at record-low cap rates.
Monterey Crossing is strategically located adjacent to Interstate 10 freeway, one of the most centrally located and heavily visited interchanges (110,000 cars per day) in the Desert Cities area of Southern California and a primary east/west arterial connecting to Los Angeles to San Bernardino County, Riverside County and Phoenix, Arizona. The property is ideally situated at the signalized intersection of Monterey Avenue and Dinah Shore Drive (57,000 cars per day) and is the major north/south connector between the freeway, resorts and high-income communities of Palm Desert, Rancho Mirage and Cathedral City.
Fountainhead is currently developing an additional single-tenant pad in the first phase of the project in addition to a second phase of the shopping center, which combined will ultimately feature 17 acres of best-in-class retail.
Monterey Crossing also benefits from freeway-visible pylon signage and was the first Palm Desert center to be approved for freeway signage, according to Asher.
National tenants located at the intersection of Monterey Avenue and Interstate 10 include Costco, Home Depot, Kohl's, Sam's Club, Walmart Supercenter, 99 Cents Only, Ashley HomeStore, JOANN Fabrics and Crafts, PetSmart and Regal Cinemas.
Palm Desert is the Coachella Valley's geographic center, a fast-growing Southern California region. Within a three-mile radius of Monterey Crossing, the population increased by 53% between 2000 and 2020 and is projected to grow an additional 7.4% by 2025. The average household income is currently $106,000. More than 4,500 new residential units are planned or under construction within a 2.5-mile radius of Monterey Crossing.
Hanley Investment Group has sold $1.8 billion in retail properties in the Inland Empire, including $467 million in volume in the last 48 months.
Visit www.hanleyinvestment.com.
The buyer, a private investor from Los Angeles, was represented by Yoram Katz of Peak Commercial in Woodland Hills, California.
Asher comments: “We generated multiple qualified offers and procured a private 1031 exchange buyer seeking a passive multi-tenant triple-net retail investment with long-term leases in a prime, high-traffic location.
“We successfully closed escrow with the buyer securing new financing and closing escrow in the final days of their 1031 exchange period, in one of the more challenging capital market environments we’ve experienced in over a decade.
“Two of the five tenants were not open for business at the close of escrow, including one tenant not yet paying rent.
We structured a holdback at closing to cover any rent not collected from close of escrow until the tenant’s formal rent commencement date.”
Previous sales at Monterey Crossing facilitated by Hanley Investment Group include two brand new, single-tenant ground leased pads to Chick-fil-A Drive-Thru and Quick Quack Car Wash, a brand new, single-tenant net-leased investment The Habit Burger Grill with a drive-thru, along with a two-tenant pad building occupied by AT&T and Spectrum.
All four properties were sold to four separate buyers at record-low cap rates.
Monterey Crossing is strategically located adjacent to Interstate 10 freeway, one of the most centrally located and heavily visited interchanges (110,000 cars per day) in the Desert Cities area of Southern California and a primary east/west arterial connecting to Los Angeles to San Bernardino County, Riverside County and Phoenix, Arizona.
The property is ideally situated at the signalized intersection of Monterey Avenue and Dinah Shore Drive (57,000 cars per day) and is the major north/south connector between the freeway, resorts and high-income communities of Palm Desert, Rancho Mirage and Cathedral City.
Fountainhead is currently developing an additional single-tenant pad in the first phase of the project in addition to a second phase of the shopping center, which combined will ultimately feature 17 acres of best-in-class retail.
Monterey Crossing also benefits from freeway-visible pylon signage and was the first Palm Desert center to be approved for freeway signage, according to Asher.
National tenants located at the intersection of Monterey Avenue and Interstate 10 include Costco, Home Depot, Kohl’s, Sam’s Club, Walmart Supercenter, 99 Cents Only, Ashley HomeStore, JOANN Fabrics and Crafts, PetSmart and Regal Cinemas.
Palm Desert is the Coachella Valley's geographic center, a fast-growing Southern California region.
Within a three-mile radius of Monterey Crossing, the population increased by 53% between 2000 and 2020 and is projected to grow an additional 7.4% by 2025.
The average household income is currently $106,000.
More than 4,500 new residential units are planned or under construction within a 2.5-mile radius of Monterey Crossing.
Hanley Investment Group has sold $1.8 billion in retail properties in the Inland Empire, including $467 million in volume in the last 48 months.
Visit www.hanleyinvestment.com.
