350-420 Palm Canyon
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FOR SALE | PRIME DOWNTOWN PALM SPRINGS ASSEMBLAGE 350-420 PA L M C A N Y O N PALM SPRINGS, CA 188,179 SF (4.32 ACRES) DEVELOPMENT SITE +/- 1,300 FEET OF FRONTAGE ON PALM CANYON AND INDIAN DRIVES SOUTH BELERADO ROAD SOUTH PALM CANYON DRIVE WEST RAMON ROAD SOUTH INDIAN CANYON DRIVE 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 WEST ARENAS ROAD SITE SOUTH BELERADO ROAD SOUTH PALM CANYON DRIVE 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 an unequaled investment/mixed-use development site at the Southern Gateway to Palm Springs’ resurgent Downtown commercial core. The site currently consists of 4 parcels of land totaling approximately 188,500 square feet (4.32 acres) with 1,300 feet of combined frontage along Palm Canyon and Indian 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. The site offers interim cash flow to an investor, with retail tenants such as Rite Aid and BBVA Compass Bank. Other tenants include a local restaurant and office tenants that occupy approximately 76,146 square feet of improvements. A site of this size and prominence is unique in the HOT Downtown Palm Spreings market. Location: 350-420 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; 513-204-004; 513-214-002; 513-214-008 Acreage: 4.32 Acres (188,500 squar feet) of land Improvements: +/- 77,013 square feet of retail & office space Zoning: CBD – Central Business District Zone. The property is Zoned (CBD) Central Business District and has the potential for a 4 to 5 story mixed used commercial/residential develop- ment. The adjacent 2.63 acre site called The Palm Canyon has a now expired tentative map to build a 5 story mixed-use development with 125 residential condominiums / townhomes and approximately 40,000 sf of ground floor retail / commercial space. 5 | 350-420 S. PALM CANYON DRIVE EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS • Unique 4+ acre commercial assemblage located in the heart of booming Downtown Palm Springs • +/- 1,300 feet of combind frontage on S. Palm Canyon and Indian Canyon Drives • In place income from existing retail and office tenants (Rite Aid, Compass Bank, and others) • Development potential (Commercial Business Distrcit 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 in the Spring of 2017. In addition the project will in- clude retail, office and conominiums. “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. 350-420 S. PALM CANYON DRIVE | 6 EXECUTIVE SUMMARY Scarcity of Luxury Condominiums – There is scarcity of new luxury con- dominium 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 condomini- ums sold from December 2013 to December 2014. Excellent Location & Visibility - The Subject site is 4.32 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 +/- 1,300 feet of combined frontage on both Palm Canyon Drive and Indian Canyon Drive. Located in the central business district of downtown Palm Springs this +/- 4.32 acre site is within walking distance to dozens of restaurants, retail, The Palm Springs Museum, Palm Springs Art Museum Architecture and Design Cen- ter, the Agua Caliente Casino the Palm Springs Convention Center and over 2,500 hotel rooms. Palm Springs - Center For Business & Culture - Palm Springs is a pro-busi- ness 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. Passenger traffic at Palm Springs In- ternational Airport is up 9.4% through July 2014. In November 2011, Palms Springs residents passed Measure J (a 1% sales tax increase), which pro- poses to raise $280 million over the next 25 years for economic develop- ment. Palm Springs is home to World Class events including Palm Springs Modernism Week, the Palm Springs International Film Festival, and the White Party Palm Springs. 7 | 350-420 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 350-420 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 in350-420 Right of 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 350-420 S. PALM CANYON DR. 350-420 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 Indian Canyon Drive Ramon Road Ingleside Inn The Viceroy 350-420 South Palm Canyon Drive 11 | 350-420 S. PALM CANYON DRIVE Historic 350-420 South Spa Hotel/ Tennis Club Vista Old Downtown Palm Canyon Desert Regional Agua Caliente Area Las Palmas Las Palmas Palm Springs Drive Medical Center Casino N DESERT HOT SPRINGS to Los Angeles to Phoenix Palm Springs International Airport Tahquitz Canyon Way Indian Canyon Drive Canyon Indian Ramon Road 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 350-420 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 St. Baristo Palm Springs Palm Springs Historic Downtown The Viceroy Ingleside Inn 350-420 South Hard Rock Tennis Club Museum of Art Tennis Club Palm Springs Palm Canyon Hotel Area Drive 13 | 350-420 S. PALM CANYON DRIVE The Parker Hotel E Palm Springs International Airport Downtown Spa Hotel/ Hard Rock Palm Springs Ar- The Viceroy Ingleside 350-420 South The Cameron Woodbridge Palm Springs Agua Caliente Hotel chitecture & Design Inn Palm Canyon (80 Homes & Retail) (New Homes) Casino Center Drive 350-420 S. PALM CANYON DRIVE | 14 THE PROPERTY Current Improvements Current Site Plan THE PROPERTY CURRENT IMPROVEMENTS The 4.3-acre site is currently improved with three buildings offering 76,146 square feet of leaseable retail and office space. Existing tenants offer income during the development process until construction commences. A rent roll and operating expenses available upon request, and execution of a Con- fidentiality Agreement. Tenancy as of August 2016 Tenant SQUARE FEET 1 Rite Aid 18,056 2 Vacant 6,349 3 Tiaquepaque 6,097 4 The Grand Paw (Vacating) 3,151 5 Compass Bank 6,471 6 Best Buys Publishing 1,113 7 Vacant 389 8 Intervention 911 3,856 9 Staples 18,780 SOUTH PALM CANYON DRIVE 10 Staples Basement 12,751 Totals 77,013 SOUTH INDIAN CANYON DRIVE WEST RAMON ROAD 16 | 350-420 S. PALM CANYON DRIVE THE PROPERTY CURRENT IMPROVEMENTS View of 362-368 S. Palm Canyon Drive View of 420 S. Palm Canyon Drive View of Parking Field for 420 S. Palm Canyon View of 350 S. Palm Canyon Drive 350-420 S. PALM CANYON DRIVE | 17 THE PROPERTY CURRENT SITE PLAN W S. PALM CANYON DRIVE EXISTING BUILDING APN 513-204-004 420 S.