Cathedral City Marketplace
#1/35 Visited Neighborhood Center within a 15-mile Radius (Placer.ai)
Marketing description
Newmark Pacific Capital Markets is pleased to present to qualified investors Cathedral City Marketplace (the “Property”), a prominent and #1 visited (Placer.ai) neighborhood shopping center in the heart of the Coachella Valley. Anchored by Food 4 Less (Kroger), dd’s DISCOUNTS, Planet Fitness, and Fun City, the Property is currently 945% leased. Offered well below replacement cost, the Property provides stable, durable cash flow supported by an approximately seven-year WALT, long-term tenancy, below-market rents, and mark-to-market upside. Food 4 Less has operated at this location since 1991 and recently extended its lease through 2035. Over the past 12 months, current ownership has made significant capital investments; a new owner can benefit from the recent openings of Dutch Bros, Fun City, and Sun City Credit Union.
The Property is located at the corner of Dinah Shore Drive and Date Palm Drive, the area’s primary commercial arterial connecting the I-10 Freeway to Highway 111 and carrying 27,045 cars per day. Cathedral City is known for its stable, year-round consumer base and is situated between Palm Springs and Rancho Mirage, two of the Coachella Valley’s most iconic desert communities.
Investment highlights
High-Performing, Grocery-Anchored Community Center
- Food 4 Less (Kroger) has occupied Cathedral City Marketplace since 1991 and operates a high-volume store.
- A complementary mix of national and local tenants provides a balanced, consistent flow of traffic.
- dd’s DISCOUNTS (Ross), Planet Fitness, and Fun City (opening soon) co-anchor the Property.
- Over 3.3 million visits in the last 12 months (Placer.ai) demonstrating strong performance; visitation is expected to increase significantly once Fun City opens in the former theater space.
- Stable cash flow with an approximately seven-year weighted average lease term (WALT) and below-market rents.
- Cathedral City Marketplace has welcomed over 3,300,000 visits in the last 12-months, making it the #1 out of 35 visited shopping center within a 15-mile radius.
Compelling Real Estate Fundamentals
- Offered at $188 PSF, well below replacement cost.
- Comprises 5 legal parcels, creating potential parcel arbitrage across the Food 4 Less parcel and building 4041 that includes Ono and BWW LOI’s.
- Well-balanced, synergistic tenant mix.
- Stable, year-round consumer base: 59,000+ residents within three miles with average household income (AHHI) exceeding $112,000.
- Prominent corner location along Date Palm Drive and Dinah Shore Drive, carrying 56,000+ vehicles per day.
- Limited immediate competition; a high-performing Food 4 Less drives strong merchandising appeal for tenants entering or relocating within the market.
Existing and Flexible Financing
- Encumbered by existing financing with a principal balance of $20,115,000, a 5.75% coupon, and 30-year amortization.
- Building 4041 is excluded from the existing loan’s securitized collateral, allowing optionality to sell individually, hold unencumbered, or place market-rate financing (see Newmark for details).
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