HFF is representing an undisclosed owner in offering Centre at La Quinta, a 79,795-square-foot community retail center in La Quinta, California, for sale. HFF was unable to reveal the asking price but industry sources unrelated to the deal tell SoCal Real Estate that the amount would represent a 7 percent cap, which is roughly $18 million.
The property is currently 94 percent leased to a national tenant roster that includes Marshalls, PetSmart, GameStop, Sprint, The UPS Store and Sherwin-Williams and is shadow-anchored by a Walmart Supercenter. Other tenants include Desert Digital Media (a Google Partner), Samurai Sam’s Korean BBQ, Canton Bistro Asian Cuisine, and HairMasters hair salon.
Additionally, there are only 15 tenants at the property, which provides investors limited management duties, HFF points out. There is an opportunity to further increase value through the potential development of the 0.42-acre anchor/shop space adjacent to PetSmart.
Completed in 2004, Centre at La Quinta is situated on 10.61 acres at 79305, 79395, and 79405 Highway 111, and it benefits from more than 40,000 vehicles per day passing the intersection of Highway 111 and Dune Palms Road. More than 160,000 residents live within a five-mile radius of the property, and average household incomes exceed $93,000. The center backs up to a future multifamily development site.
Based upon HFF’s market projections, lease-up of the three vacant spaces and re-tenanting the Payless Shoes (60-day kick out) suite will grow the net operating income over 30 percent during the hold period. More than 52 percent of the GLA is leased through 2024 or greater, including Marshalls (2024), Sherwin-Williams (2027), Maxcy’s Grill (2026), and Canton Bistro (2027). The firm adds that in-place existing debt allows investors the opportunity to assume attractive debt, eliminating interest rate risk.