COACHELLA VALLEY, CA — Two buildings in the Cathedral Cove Center in downtown Cathedral City have sold for a total of approximately $8 million, according to the real estate company that represented the seller and developer.
The two newly constructed, single-tenant retail properties, currently occupied by Circle K and Starbucks, were sold to individual private buyers in separate transactions, Hanley Investment Group Real Estate Advisors announced on Monday.
The Circle K-leased property, located at 68835 East Palm Canyon Drive, sold for over $4.19 million. The buyer was a private investor from Ventura. The 3,700-square-foot convenience store sits on a 1.08-acre pad and features a new 20-year triple-net ground lease with 10% rental increases every five years.
According to Executive Vice President Bill Asher of Hanley Investment Group, multiple qualified offers were received within the first 30 days of marketing the property, largely due to the 20-year initial lease term and the property’s location on Highway 111.
The Cathedral Cove Center is situated at the intersection of East Palm Canyon Drive/Highway 111 and Date Palm Drive, directly across from Agua Caliente Cathedral City. In addition to Circle K and Starbucks, the center also features a Farmer Boys drive-thru restaurant (coming soon for sale) and Chipotle Mexican Grill.
As for Circle K, Asher said, “corporate-leased convenience stores with a fuel station continue to attract strong investor interest. Their long-term leases, daily-use appeal, and resilience in all economic cycles make them a preferred choice for buyers seeking dependable income.”
The Starbucks property, located at 68995 East Palm Canyon Drive, sold for $3.7 million. The buyer was a private investor from Roseville, California.
The 1,900-square-foot building, situated on a 0.79-acre site, is leased to Starbucks Corporation under a new 10-year triple-net lease with 10% rental increases every five years and four five-year renewal options.
Similar to the Circle K sale, the buyer came in while the property was still under construction and closed escrow before the tenant began paying rent and before Starbucks opened for business.
