$13.5 Million Sale of Single-Tenant Property in Palm Desert
$13.5 Million Sale of Single-Tenant Property Occupied by Walmart Neighborhood Market in Palm Desert, CA
Palm Desert, CA — Newmark Knight Frank (NKF) has announced it has completed the $13.5 million sale of a single-tenant, 45,648-square-foot retail property fully occupied by Walmart Neighborhood Market in Palm Desert, CA.
NKF Vice Chairman William Bauman, Executive Managing Director Kyle Miller and Associate Director Matthew Schwartz represented the seller, Paragon Commercial Group. The buyer, a private investor from Chicago was represented by Mike Mintz of Millennium Properties. The property sold at a cap rate of 5 percent and a price per square foot of approximately $296.
Located at 72314 Highway 111, the triple-net leased asset is situated on 5.37 acres at one of the most heavily trafficked intersections in Palm Desert at Fred Waring Drive and Highway 111. Walmart began operations at the site in October of 2012.
“This is a well-positioned and stable asset with approximately nine years remaining on the lease with one of the world’s most successful retailers,” said Miller.
Miller noted, “This property was one of Paragon’s first deals when it started the company. The firm acquired the asset directly from Toys “R” Us and immediately had tenant interest from a number of retailers. Paragon will be exchanging the proceeds from this sale and is currently seeking another value-add opportunity to leverage its dynamic platform and relationships.”
The property enjoys outstanding visibility and access along Highway 111 and stands as the major Walmart Neighborhood Market servicing the immediate trade area. It is located near prominent operators such as Whole Foods, Nordstrom Rack, Total Wine & More!, Target, TJ Maxx, and Best Buy. It is supported by an affluent consumer base with more than 68,000 residents with average household incomes in excess of $100,000 within five miles of the property.
Palm Desert is widely recognized as one of California’s most coveted vacation destinations and is located within the Coachella Valley, which is home to the Coachella Valley Music and Arts Festival. The city is comprised of some of California’s most prestigious country clubs and golf courses.