Multi-Tenant Retail Pad at Monterey Crossing Sells for $6.34 Million
A newly constructed, fully leased 8,400 SF multi-tenant retail pad at Monterey Crossing in Palm Desert sold for $6.34M. Hanley Investment Group facilitated the transaction, marking the fifth retail pad sale at the center.
Prime Retail Investment in Palm Desert
A newly constructed, 8,400-square-foot multi-tenant retail pad at Monterey Crossing, a recently developed shopping center located at the Interstate 10 and Monterey Avenue interchange in Palm Desert, has been sold for $6.34 million ($755 per square foot). The transaction further solidifies Monterey Crossing’s status as a premier retail destination in the region.
Fully Leased Property with Strong Tenant Mix
Constructed in 2022, the retail pad is 100% leased and sits on a 1.18-acre lot at 3120 Dinah Shore Drive, at the hard corner of the signalized intersection of Monterey Avenue and Dinah Shore Drive. The building features a diverse mix of internet-resistant tenants, including:
- Jersey Mike’s Subs – A rapidly growing national sandwich chain.
- Nekter Juice Bar – A popular health-focused juice and smoothie brand.
- Roll-Em-Up Taquitos – A unique fast-casual restaurant concept.
- Keith Alexander, DDS – A well-established dental practice.
- Mathnasium – A trusted math tutoring center for students.
Strategic Location with High Visibility
Monterey Crossing benefits from a prime location adjacent to the heavily trafficked Interstate 10, one of the busiest freeway interchanges in the Desert Cities region of Southern California. The interchange sees approximately 110,000 cars per day, making it a vital east-west corridor connecting Los Angeles to San Bernardino County, Riverside County, and Phoenix, AZ.
The intersection of Monterey Avenue and Interstate 10 is a thriving retail hub, home to major national retailers, including:
- Costco
- Home Depot
- Kohl’s
- Sam’s Club
- Walmart Supercenter
- 99 Cents Only
- Ashley HomeStore
- JOANN Fabrics and Crafts
- PetSmart
- Regal Cinemas
This concentration of retailers creates a high-volume shopping environment, driving consistent foot traffic to Monterey Crossing.
Hanley Investment Group Facilitates Another Successful Sale
The transaction marks the fifth retail pad building sold at Monterey Crossing, bringing the total retail space sold at the center to 25,400 square feet with a combined value of approximately $27 million.
Bill Asher and Jeff Lefko of Hanley Investment Group Real Estate Advisors represented the developer and seller, Fountainhead Development of Newport Beach, in all five retail investment transactions. The buyer, a private investor from Los Angeles, was represented by Yoram Katz of Peak Commercial in Woodland Hills.
Overcoming Market Challenges
Despite facing a challenging capital market environment, the deal was successfully closed with the buyer securing new financing in the final days of their 1031 exchange period.
“We successfully closed escrow with the buyer securing new financing and closing escrow in the final days of their 1031 exchange period, in one of the more challenging capital market environments we’ve experienced in over a decade,” said Bill Asher, Executive Vice President of Hanley Investment Group.
Notably, at the time of closing, two of the five tenants had not yet opened for business, and one tenant had not commenced rent payments. To mitigate potential risks, Hanley Investment Group structured a holdback agreement at closing to cover any rent not collected until the tenant’s formal rent commencement date.
Previous Sales at Monterey Crossing
This latest sale follows a series of successful transactions at Monterey Crossing, including:
- Single-Tenant Ground-Leased Pad to Chick-fil-A Drive-Thru
- Single-Tenant Ground-Leased Pad to Quick Quack Car Wash
- Single-Tenant Net-Leased Investment for The Habit Burger Grill (Drive-Thru)
- Two-Tenant Pad Building Occupied by AT&T and Spectrum
Each of these four properties was sold to separate investors at record-low cap rates, reflecting strong demand for well-located, high-quality retail assets in the current market.
The Growing Demand for Net-Leased Retail Investments
The sale of the Monterey Crossing retail pad is indicative of the broader trend in the net-leased retail investment sector. Investors are increasingly drawn to service-based, internet-resistant tenants that provide stable income streams and long-term value appreciation.
“With retailers and service providers continuing to expand in high-traffic locations, demand for high-quality, net-leased retail investments remains strong,” said Asher. “We anticipate continued interest in well-positioned assets like those at Monterey Crossing, given their prime locations and strong tenant mix.”
Conclusion
The successful sale of the 8,400-square-foot multi-tenant retail pad at Monterey Crossing highlights Hanley Investment Group’s expertise in structuring complex retail transactions and maximizing value for both buyers and sellers. Despite market challenges, the firm has continued to deliver exceptional investment opportunities that meet the evolving demands of today’s investors.
With multiple successful sales at Monterey Crossing and a proven track record in retail investment sales, Hanley Investment Group remains a trusted leader in the commercial real estate industry.
For more information about Hanley Investment Group Real Estate Advisors and their latest retail investment opportunities, visit their official website.