The Offering presents the opportunity to acquire a high-performing, grocery-anchored shopping center located at a signalized intersection in the heart of the Coachella Valley. Cathedral City Marketplace is anchored by Food 4 Less, a discount grocer that has occupied the center since 1990 and recently extended its lease through 2035. With over $40M in estimated annual sales, Food 4 Less welcomes over 900,000 annual visits alone, reflecting a 20% increase in foot traffic over the past three years (Placer.ai). Planet Fitness also performs well, ranking in the 88th percentile nationwide in terms of annual visits of approximately 298k (Placer.ai).
Cathedral City Marketplace is the most-visited neighborhood center in the Coachella Valley and ranks in the 88th percentile of all neighborhood centers nationwide, according to Placer.ai, with 2.5 million annual visits and three consecutive years of traffic growth. Supporting the center’s momentum, a brand new Dutch Bros. (NAP) is slated to open at the center in Summer 2025 in addition to an incoming Sun Community Credit Union (NAP) and a new 10-year lease with Fun City, a fast-growing national adventure park brand, backfilling the former cinema. Founded in 2015 in the Northeast United States, Fun City has since expanded across the country, with the Cathedral City location planned to be one of three California locations.
The Property is strategically located at the highly trafficked, signalized intersection of Dinah Shore Drive and Date Palm Drive, which sees over 50,000 combined vehicles per day. Just 10 minutes away is Disney’s Cotino development, a 618-acre mixed-use development that will include 1,932 residential units, a 24-acre lagoon, hotel, and a shopping district.
The asset is currently 94% occupied with a weighted average lease term (WALT) of 10.33 years, providing long-term secured cash flow. A CAGR of 2.6% is provided due to scheduled rental increases for 24 of the 29 tenants.
The Offering includes five parcels, yet the Seller is in the process of further parceling the property to provide a total of 13 parcels, providing future spinoff or value-add optionality. Shop rents are approximately 20% below market, creating further upside through re-leasing or FMR-based option renewals. Current owner recently invested over $546k into property upgrades, including repaving of the parking lot and exterior painting.