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350 S. Palm Canyon Dr FOR SALE | DOWNTOWN PALM SPRINGS USER/DEVELOPMENT OPPORTUNITY 350 S. PALM CANYON DR. PALM SPRINGS, CA 64,546 SF (1.48 ACRE) OF LAND 18,000 SF BUILDING W/ BASEMENT +/- 450 FEET OF COMBINED FRONTAGE ON PALM CANYON AND INDIAN DRIVES SOUTH BELERADO ROAD SOUTH PALM CANYON DRIVE 350 S PALM CANYON DR. SOUTH INDIAN CANYON DRIVE WEST RAMON ROAD N TIMOTHY L BOWER MARCO ROSSETTI GABRIELLE LARDIERE Senior Vice President Senior Associate +1 310 550 2605 +1 310 550 2521 +1 760 578 4723 [email protected] [email protected] [email protected] Lic. 01911073 Lic. 00864693 Lic. 01805951 CAPITAL MARKETS TABLE OF CONTENTS EXECUTIVE SUMMARY Investment Summary Investment Highlights AERIAL OVERVIEW THE PROPERTY Current Improvements Site Plan MARKET OVERVIEW Regional Overview | Coachella Valley Submarket Overview | City of Palm Springs APPENDIX Zoning Code Palm Springs, CA BARRISTO ROAD SOUTH BELERADO ROAD 350 S PALM SOUTH PALM CANYON DRIVE CANYON DR. SOUTH INDIAN CANYON DRIVE WEST RAMON ROAD N EXECUTIVE SUMMARY Investment Summary Investment Highlights EXECUTIVE SUMMARY INVESTMENT SUMMARY CBRE has been retained on an exclusive basis to present the opportunity to acquire a prime site at the Southern Gateway to Palm Springs’ resurgent Downtown commercial core. The site currently consists of +/- 18,750 square feet of building with +/- 12,750 square feet of basement on +/- 64,546 square feet of land (1.48 acres) with 448 feet of combined frontage along Palm Canyon and Indian Canyon Drives. This prime site has potential for retail, office and residential development, and boasts spectacular street front visibility as well as mountain and Coachella Valley views. Location: 350 South Palm Canyon Drive, Palm Springs, CA Bounded by Palm Canyon Drive to the west and Indian Canyon Drive to the east Parcels: 513-204-003 Acreage: 1.48 acres (64,546 square feet) of land Improvements: +/-31,500 square feet of retail building on two floors (18,750 SF ground floor; 12,750 SF basement) Zoning: CBD – Central Business District Zone. 5 | 350 S. PALM CANYON DRIVE EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS • +/- 1.48 acre commercial mixed-use development parcel located in the heart of resurgent Downtown Palm Springs • +/- 450 feet of combined frontage on S. Palm Canyon and Indian Canyon Drives • Neighboring tenants: Rite-Aid, BBVA Compass Bank, Palm Springs Museum of Art and Architecture, The Bank Palm Springs, The Avalon Hotel • Commercial Business District Zoning • Hot Downtown Palm Springs real estate market Palm Springs Downtown Renaissance – The Palm Springs downtown core is now experiencing a renaissance. The catalyst is Wessman De- velopment’s $150 million redevelopment of 14 acres in the core, pre- viously occupied by the Desert Fashion Mall, called “Downtown Palm Springs”. This game changing project aims to create a walkable project with hotels, retail, office, and residential uses. The first phase featuring a 155-room Kimpton Hotel with a rooftop deck is under construction and scheduled to open December 2017. In addition the project will include retail, office and condominiums. “Shops on Palm Canyon” is also under construction at the SEC Palm Canyon Dr. and Alejo Rd. with a 150-room Hyatt Andaz boutique. The hotel space will include a rooftop pool and 27,000 square feet of retail and restaurants. 350 S. PALM CANYON DRIVE | 6 EXECUTIVE SUMMARY Excellent Location & Visibility - The Subject site is 1.48 acres bounded by Palm Canyon Drive and Indian Canyon Drive. Ramon Road to the South of the site, is the southern gateway to the core of Palm Springs’ active downtown area. Retail space benefits from +/- 450 feet of combined frontage on both Palm Canyon Drive and Indian Canyon Drive. Located in the central business district of downtown Palm Springs this +/- 1.48 acre site is within walking distance to dozens of restaurants, retail, The Palm Springs Museum, Palm Springs Art Museum Architecture and Design Center, the Agua Caliente Casino the Palm Springs Convention Center and over 2,500 hotel rooms. Scarcity of Luxury Condominiums – There is scarcity of new luxury condominium options in Palm Springs. A recent survey of four of Palm Springs higher quality condominium communities built since 2003 totaling 266 units, shows only 11 units for sale as of January 2015. Palm Springs’ 92262 zip code saw a 33.6% increase in the median sales price for condominiums sold from December 2013 to December 2014. Palm Springs - Center For Business & Culture - Palm Springs is a pro- business city, which is showing strong economic vitality. In the past year, Palms Springs has experienced a significant increase in tourism and a 15% increase in transient occupancy tax. The Coachella Valley’s average hotel occupancy was 61.5% in 2016, the best since 2006, with average daily rates reaching $159.99 in 2016 - a 7.4% increase from the previous year. These gains can be credited to the increased air service into Palm Springs International Airport, the growth of events like Modernism Week, and the Coachella & Stagecoach music festivals. In November 2011, Palms Springs residents passed Measure J (a 1% sales tax increase), which proposes to raise $280 million over the next 25 years for economic development. 7 | 350 S. PALM CANYON DRIVE DOWNTOWN PALM SPRINGS COMMERCIAL DEVELOPMENT PORT LAWREND (U/C) ANDAZ HOTEL HYATT PALM SPRINGS SPA HOTEL/ AGUA CALIENTE CASINO DOWNTOWN PALM SPRINGS (U/C) HARD ROCK HOTEL HISTORIC TENNIS CLUB AREA THE AVALON HOTEL 350 S. PALM CANYON DR. 0 mi 0.5 1 1.5 Copyright © and (P) 1988–2012 Microsoft Corporation and/or its suppliers. All rights reserved. http://www.microsoft.com/streets/ Certain mapping and direction data © 2012 NAVTEQ. All rights reserved. The Data for areas of Canada includes information taken with permission from Canadian authorities, including: © Her Majesty the Queen in Right of350 Canada, S. PALM © Queen's CANYON Printer for DRIVE | 8 Ontario. NAVTEQ and NAVTEQ ON BOARD are trademarks of NAVTEQ. © 2012 Tele Atlas North America, Inc. All rights reserved. Tele Atlas and Tele Atlas North America are trademarks of Tele Atlas, Inc. © 2012 by Applied Geographic Solutions. All rights reserved. Portions © Copyright 2012 by Woodall Publications Corp. All rights reserved. DOWNTOWN PALM SPRINGS COMMERCIAL DEVELOPMENT 350 S. PALM CANYON DR. 350 S. PALM CANYON DRIVE | 9 AERIAL OVERVIEW AERIAL OVERVIEW Historic Palm Springs Tennis Club Palm Springs Downtown Palm O’Donnell Old Port Desert Regional Hard Rock Spa Hotel/ Agua Tennis Club Area Art Museum Springs Golf Club Las Palmas Hyatt Lawrence Medical Center Hotel Caliente Casino N Tahquitz Canyon Way PS Architecture & Design Center Eisenhower Health Center Palm Canyon Drive CHASE Indian Canyon Drive 350 S PALM CANYON DR. Ramon Road Ingleside Inn The Avalon Hotel 11 | 350 S. PALM CANYON DRIVE Historic Spa Hotel/ Tennis Club Vista Old Downtown Desert Regional Agua Caliente Area Las Palmas Las Palmas Palm Springs Medical Center Casino N DESERT HOT SPRINGS to Los Angeles to Phoenix Palm Springs International Airport Tahquitz Canyon Way Indian Canyon Drive Canyon Indian 350 S PALM Ramon Road CANYON DR. Biltmore Colony Palm Canyon Drive Palm Ridge Dakota Woodbridge The Cameron The Curve Caliente Tropics Ace (40 Homes) (39 Homes) (New Homes) (80 Homes & Retail) Hotel Hotel Hotel 350 S. PALM CANYON DRIVE | 12 AERIAL OVERVIEW Palm Springs Vista Old O’Donnell Desert Regional Port Spa Hotel/ Agua Convention Las Palmas Las Palmas Golf Club Medical Center Lawrence Caliente Casino Center DESERT HOT SPRINGS Palm Springs International Airport NE Palm Springs 48 @ Arenas The Villas 350 S PALM St. Baristo CANYON DR. Palm Springs Palm Springs Historic Downtown The Avalon Ingleside Inn Hard Rock Tennis Club Museum of Art Tennis Club Palm Springs Hotel Hotel Area 13 | 350 S. PALM CANYON DRIVE The Parker Hotel E Palm Springs International Airport 350 S PALM CANYON DR. Downtown Spa Hotel/ Hard Rock Palm Springs Ar- The Avalon Ingleside The Cameron Woodbridge Palm Springs Agua Caliente Hotel chitecture & Design Hotel Inn (80 Homes & Retail) (New Homes) Casino Center 350 S. PALM CANYON DRIVE | 14 THE PROPERTY Current Improvements Current Site Plan THE PROPERTY CURRENT IMPROVEMENTS The 1.48-acre site is currently improved with with 31,500 square feet of vacant retail space. BARRISTO ROAD SOUTH PALM CANYON DRIVE SOUTH INDIAN CANYON DRIVE 16 | 350 S. PALM CANYON DRIVE THE PROPERTY CURRENT IMPROVEMENTS View of 350 S. Palm Canyon Drive 350 S. PALM CANYON DRIVE | 17 THE PROPERTY CURRENT SITE PLAN W S. PALM CANYON DRIVE ARCHITECTURE DESIGN W. RAMON RD CENTER PALM SPRINGS ART MUSEUM APN 513-204-003 +/- 65,100 SF EXISTING BUILDING 350 S. PALM CANYON DRIVE +/- 31,500 SF VACANT S. INDIAN CANYON DRIVE 18 | 350 S. PALM CANYON DRIVE MARKET OVERVIEW Regional Overview | Coachella Valley Submarket Overview | City of Palm Springs MARKET OVERVIEW REGIONAL OVERVIEW Coachella Valley Generally referred to as the Palm Springs area, the Coachella Valley (369,596 permanent population with an additional 100,000+ seasonal population) is located in Riverside County and stretches over 50 miles from the city of Palm Springs in the west to the Salton Sea in the east. The Coachella Valley, which is bisected by Interstate 10, is strategically located 110 miles east of Los Angeles and 250 miles west of Phoenix. Originally established as an agricultural region and winter vacation spot for Southern California, the Coachella Valley now has a diverse year round economy. Coachella Valley Statistics 2014 • Hotel occupancy and rates throughout the Coachella Valley are improving. The average daily rate for the first eight months of 2015 was $156.94, which is up 7.4% from the same period from 2014 and from-home for countless celebrities. It became popular as a quick also exceeds the same period peak of $132.20 from 2008. The 2016 getaway due to the legendary “Two-Hour Rule” that required actors average occupancy for the Coachella Valley was 61.3%.
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