Corporate Del Taco
2444 N Palm Canyon Dr Palm Springs, CA 92262
Price: $2,750,000
Status: Sold
Cap Rate: 4.00%
Year Built: 1982
NOI: $115,200
Lot Size: 0.50 acres
Price Per Foot: $1,279
Lease Type: NNN
Remaining Term: 15 Years
GLA: 2251 sqft
Property Intro
Lee & Associates is pleased to exclusively offer for sale the opportunity to acquire the fee simple interest (land & building) in a Del Taco investment property located in the Palm Springs, CA (the “Property”). Originally built in 1982 as a build to suit for Naugles, the Property is currently leased by Del Taco Corporate on a long term lease that consists of a 2,251-square-foot retail building with a drive-thru lane and outdoor patio seating.
investment highlights
- DEL TACO CORPORATE LEASED INVESTMENT OPPORTUNITY – FUTURE BUILDING REMODEL AT TENANT’S EXPENSE
- The subject property is leased to Del Taco (corporate), an American quick service restaurant chain specializing in American-style Mexican cuisine as well as American foods such as burgers, fries, and shakes. The chain serves over 3 million visitors each week at its approximately 600 restaurants across 15 states and reports sales revenues of roughly $513 million (2019). Per the lease, the Tenant is required to complete a full remodel of the building at their own expense to meet the latest Del Taco prototype façade.
- SUCCESSFUL 38-YEAR OPERATING HISTORY – 15 YEAR ABSOLUTE NNN LEASE WITH 10% RENT BUMPS
- Del Taco (formerly Naugles) has operated at this location since 1982 and has executed multiple lease extensions, the most recent a 15-year extension in October 2020 that commences January 1, 2021. The Absolute NNN lease features 10% rent increases every five years in the Primary Term and in the Option Periods.
- ADJACENT TO FUTURE NEW RETAIL AND HIGH DENSITY RESIDENTIAL DEVELOPMENT
- The subject property is adjacent to the Art Colony (approximately 10-acres), and one of the last sizeable fee-land infill properties remaining in Palm Springs. This site is poised for new development with plans for additional retail and a proposed high density residential development that could include residential attached, multi-family, senior housing, or hospitality uses.
- STRATEGIC LOCATION ON SIGNALIZED INTERSECTION OF N. PALM CANYON DR/HWY 111 & W. RACQUET CLUB RD (22,000+ CPD) – EXCELLENT SIGNAGE & VISIBILITY – QUICK ACCESS TO INTERSTATE 10
- The subject property is ideally located at the intersection of N. Palm Canyon Dr/Hwy 111 & W. Racquet Club Rd., providing excellent visibility and signage to over 24,000 cars per day and providing for easy in/out access via the drive thru. The N. Palm Canyon Dr./Hwy 111 corridor is the main travel route between Interstate 10 and downtown Palm Springs.
- LOCATED ALONG MAJOR TRAVEL ARTERY – HOME TO PALM SPRING’S CORE SHOPPING DISTRICT – BLOCKS FROM DESERT REGIONAL MEDICAL CENTER
- The N. Palm Canyon Dr./Hwy 111 corridor is the main travel route between Interstate 10 and downtown Palm Springs. It’s home to the city’s core shopping district which features vintage boutiques, numerous hotels, and restaurants. It’s also home to services such as the Desert Regional Medical Center, a 385-bed regional medical center with emergency services and the only designated Level II trauma center in the Coachella Valley.
- LOCATED IN THE ICONIC CITY OF PALM SPRINGS – POPULAR GETAWAY FOR SOUTHERN CALIFORNIA RESIDENTS – ESTIMATED 12M VISITORS PER YEAR – INCREASED DEMAND FOR HOUSING & COMMERCIAL DEVELOPMENT
- The subject property is located within the iconic City of Palm Springs, approximately 107 miles east of Los Angeles and 125 miles northeast from San Diego. As a popular spot for Southern California residents as well as a popular destination for snowbirds looking to escape to the warm weather, the area sees an estimated 12 million visitors on average per year, generating over $4 billion in revenue. Palm Springs is currently experiencing a housing boom due to low interest rates and a strong demand to relocate from more urban areas. Most homes are receiving multiple offers, and often selling over asking prices.
listing agents
