Investment Offering
Cathedral City, CA - Dave's Hot Chicken
31875 Date Palm Drive | Cathedral City, CA 92234
$2,500,000
Price4.4%
Cap Rate$110,000
NOI2,675
± SF Offering GLA0.67
± AC Land AreaDescription
SRS National Net Lease Group is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in an absolute NNN leased, drive-thru equipped, Dave’s Hot Chicken investment property located in Cathedral City, California (Palm Springs MSA). The tenant, CLK HOTNASH, LP recently signed a brand new 20-
year lease with 2 (5-year) and 1 (4-year 11 mo.) options to extend, demonstrating their long-term commitment to the site. The lease features 10% rental increases every 5 years during the initial term and at the beginning of each option period, growing NOI and hedging against inflation. The lease is NNN with minimal landlord responsibilities, making this an ideal, management-free investment opportunity for a passive investor. In addition, the site will feature a newly constructed, drive-thru equipped building with modern amenities and design. On average, stores with drive-thus experience higher sales than those without. Furthermore, the subject property benefits from limited competition as one of only three Dave’s Hot Chicken’s in all of Coachella Valley. Lastly, rent has commenced and tenant is currently paying rent in full.
Location
The site is strategically located near the signalized, hard corner intersection of Date Palm Drive and Ramon Road, and benefits from nearby access to Interstate 10, a major thoroughfare averaging over 101,000 vehicles per day. The property is ideally situated as an outparcel to Date Palm Plaza, anchored by Cardenas Markets, Harbor Freight Tools, and CVS. Other nearby national/credit tenants include Walmart Supercenter, Lowe’s, The Home Depot, Ross Dress for Less, Bed Bath and Beyond, Marshalls and many more. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure to the location. Furthermore, the site is 1.5 miles from Cathedral City High School (1,607 students) and 3 miles from Palm Springs International Airport, further increasing consumer traffic to the property. The 5-mile trade area is supported by more than 103,000 residents and 43,000 employees, providing a direct consumer base from which to draw. Residents within 5 miles of the site boast an affluent average household income of $109,137.
Contact
Matthew Mousavi
Sr Managing Principal & Co-Head of National Net Lease
949.698.1116949.698.1116[email protected]CA #: 01732226
Patrick Luther, CCIM
Sr Managing Principal & Co-Head of National Net Lease
949.698.1115949.698.1115[email protected]CA #: 01912215