A 146,110 shopping center in Palm Springs has recently been placed up for sale. Located at 601 E Tahquitz Canyon Way, The Courtyard at Palm Springs, is listed with an asking price of $31.5 million, or about $215 per square foot, according to the marketing brochure from CBRE, which is acting as the exclusive advisor.
According to public records, the property is currently owned by an entity linked to Sam Rasmussen of Ocean Properties Development Corp.
Nestled on a sprawling seven-acre city block, the Courtyard at Palm Springs is located within a prominent position in the heart of downtown Palm Springs. The property also offers a 400-car covered parking structure, along with an additional 260 parking spaces on the premises. This significant parking advantage distinguishes the project from competitors and caters to the growing demand for covered parking facilities in the area, the marketing brochure shows.
The Courtyard at Palm Springs is home to a mix of retail, office and medical tenants, with its occupancy rate at 90 percent. The property also has a projected $1.1 million growth in net operating income over the next five years.
A portion of this property offers a redevelopment opportunity as well. The site has the potential for multifamily or condo development, with possible heights of up to 100 feet. This flexibility in land use expands the potential revenue streams for investors, tapping into the ever-growing demand for residential properties in Palm Springs.
Furthermore, a re-tenanting opportunity exists, particularly for the Regal Cinemas theater space, where rental increases of $7.50 per square foot can be realized. Additionally, the property includes a ground lease with a building currently paying $0.40 cents per square foot.
