Hanley Investment Group Completes Landmark Sale of Bank of America in Palm Desert
Hanley Investment Group arranged the $2.87M sale of a single-tenant Bank of America in Palm Desert, achieving a record-low cap rate for California in 2023.
Record-Low Cap Rate Sale in California
Hanley Investment Group Real Estate Advisors successfully arranged the sale of a 2015-built, single-tenant Bank of America property in Palm Desert, California. The transaction, valued at $2,875,000, was structured as an absolute triple-net (NNN) ground lease and reportedly achieved a record-low cap rate for a single-tenant Bank of America sale in California in 2023.
The sale underscores the continued demand for high-quality net lease investment opportunities in prime California locations, particularly among private investors seeking stable, long-term assets in dynamic markets.
Key Players in the Transaction
Hanley Investment Group’s Executive Vice Presidents Bill Asher and Jeff Lefko represented the seller, a Los Angeles-based private investor. The buyer, a private investor from Riverside County, was represented by Tyler Rollema of The Klabin Company in Torrance, California.
Competitive Bidding Drives Strong Investor Demand
According to Bill Asher, Hanley Investment Group’s strategic marketing approach resulted in multiple qualified offers within the first few weeks of launching the formal listing.
Attracting an All-Cash 1031 Exchange Buyer
“We generated strong investor interest early, ultimately securing a deal with an all-cash buyer in a 1031 exchange, residing in close proximity to the property,” said Asher. “Due to the competitive bidding environment we created, we structured a timely due-diligence period that began immediately from the signed letter of intent, giving the seller greater certainty in the buyer’s commitment.”
This proactive strategy ensured a seamless transaction process, allowing the seller to capitalize on optimal market conditions and the buyer to secure a prime net lease investment in one of Southern California’s most sought-after retail corridors.
Prime Location and Investment Appeal
The Bank of America property is strategically located in Palm Desert, a thriving retail and business hub in the Coachella Valley. Known for its affluent demographics, strong tourism industry, and year-round economic activity, Palm Desert remains a highly desirable market for investors seeking stable, long-term assets.
Why Palm Desert is a Prime Retail Market
- Affluent Demographics: High-income residents and seasonal visitors create strong consumer demand.
- Tourism Hotspot: Home to luxury resorts, golf courses, and events like the BNP Paribas Open and Coachella Festival.
- Retail Demand: A growing commercial sector attracts national retailers and financial institutions.
The property’s strategic location further enhances its value, ensuring consistent foot traffic, strong brand visibility, and long-term tenant stability.
Net Lease Investment Market Trends
The successful sale of this Bank of America property reflects broader trends in the single-tenant net lease (STNL) investment market. Investors continue to prioritize high-credit tenants, prime locations, and absolute NNN lease structures, which offer minimal landlord responsibilities and long-term income security.
Demand for Single-Tenant Assets
- Financial Institutions Remain Strong Tenants: Despite the rise of digital banking, brick-and-mortar locations remain crucial for brand trust and high-value transactions.
- 1031 Exchange Buyers Driving Activity: Many investors are seeking secure, inflation-resistant assets in light of shifting economic conditions.
- Cap Rate Compression in Prime Markets: The record-low cap rate achieved in this transaction highlights the strong investor appetite for well-located, credit-tenant net lease properties.
Hanley Investment Group’s Expertise in Net Lease Sales
Hanley Investment Group continues to be a leader in single-tenant and multi-tenant retail investment sales, specializing in structuring deals that maximize value for both buyers and sellers.
With a deep understanding of retail market dynamics, investor trends, and strategic deal structuring, Hanley Investment Group consistently delivers record-breaking transactions and exceptional results for its clients.
Why Investors Choose Hanley Investment Group
- Proven Track Record: Successfully completed transactions in high-demand retail markets.
- Industry Expertise: Deep knowledge of NNN lease structures and 1031 exchange strategies.
- Extensive Buyer Network: Access to qualified investors nationwide ensures faster closings and competitive bidding.
Conclusion
The record-low cap rate sale of this Bank of America property in Palm Desert highlights Hanley Investment Group’s expertise in structuring and executing high-value retail investment transactions. As demand for premium net lease assets remains strong, Hanley Investment Group continues to provide strategic investment opportunities that align with the goals of private investors and institutional buyers alike.
For more information on retail investment opportunities, contact Hanley Investment Group today.