CSRA KOMAR DESERT CENTER, DST
Location: 79705-79845 Highway 111, La Quinta, California 92253
ALL CASH/NO MORTGAGE DEBT OFFERING
Estimated Distribution Rate: 5.5%
- Estimated Hold Period : 7 - 10 years
- 15-year absolute net lease
- Fixed rent escalations of 2.25% per year
The Coachella Valley is a collection of affluent resort communities including Palm Springs, Palm Desert, Rancho Mirage, Desert Hot Springs, Indian Wells, La Quinta and Indio.
Highway 111, La Quinta, California
Major tenants include Starbucks, BevMo!, Burgers and Beer, Toda Moda, Souplantation and Mimi’s Café Constructed in 2008 with multiple points of access along Highway 111 retail corridor
INVESTMENT HIGHLIGHTS
- Institutional Quality Asset: Built in 2008 using the highest quality construction, Komar Desert Center is one of the newest developments along the popular Highway 111 retail corridor.
- Stable Cash Flow with Substantial Upside: Currently 92 percent leased through the end of 2017, the property provides steady cash flow while offering significant future upside through additional leasing and development.
- Daily Needs Shadow Anchored Shopping Center: The property is shadow anchored by Costco (not a part of the offering). The 139,000-square-foot store brings visitors from as far as 15 miles away, providing other tenants at Komar Desert Center a tremendous amount of traffic.
- compete for limited space amid little new construction.
- Separately Parceled Providing Multiple Exit Strategies: All seven standalone buildings are separately parceled providing the opportunity to sell individual pad buildings to net lease investors at a remium, thereby lowering the investor’s overall cost basis.
PROPERTY DETAILS
Strategically located with frontage along the highly trafficked Highway 111 in affluent resort community
Komar Desert Center
- Major tenants include Starbucks, BevMo!, Burgers and Beer, Toda Moda, Souplantation and Mimi’s Café
- Constructed in 2008 with multiple points of access along Highway 111 retail corridor
- Parking ratio of 5.5 vehicles per 1,000 square feet, or 429 vehicle spaces
- Located in an affluent resort community visited by many tourists each year
- Shadow-anchored by Costco (S&P: A+); not a part of the offering
COACHELLA VALLEY OVERVIEW
The Coachella Valley is a collection of affluent resort communities including Palm Springs, Palm Desert, Rancho Mirage, Desert Hot Springs, Indian Wells, La Quinta and Indio. Given the area’s warm climate and its proximity to the Greater Los Angeles area, the valley is a popular winter and weekend retreat for Southern Californian residents as well as visitors from the northern United States and Canada, referred to as “snowbirds.” With its large inventory of recreational facilities in the area, including more than 100 golf courses and over 600 tennis courts, the valley is also an established resort and group destination. The Palm Springs Valley, as it has been termed, has also become a known location for Indian casinos including Casino Morongo in Cabazon, the Fantasy Springs Casino Hotel in Indio, and the Agua Caliente Casino and Spa in Rancho Mirage, among others. On average, Coachella Valley welcomes approximately 3.5 million overnight visitors every year.
COACHELLA VALLEY RETAIL MARKET
The Coachella Valley retail market consists of affluent resort communities such as Palm Springs, Palm Desert, La Quinta, and Rancho Mirage. Retailers in the area are supported by not only a growing population, but increasingly more and more tourism each year. The Coachella Valley is a choice destination for thousands of visitors and vacationers, many of which have second homes in the area. The market totals over 26,000,000 square feet of retail space across over 2,000 buildings.
ABOUT CAPITAL SQUARE
Capital Square 1031, LLC specializes in the creation and management of real estate investment programs for Section 1031 exchange investors and other investors using the Delaware Statutory Trust structure. Louis J. Rogers, founder and chief executive offi cer of Capital Square, has been involved in the creation and management of more than 100 investment offerings totaling over $3 billion, including DSTs, tenant-in-common offerings, numerous real estate funds, and multiple publicly registered non-traded real estate investment trusts.