Indian Wells Health & Wealth Center
74785 Highway 111
Indian Wells, CA 92210
Highlights
- Top US City for Wealth: Indian Wells is one of the wealthiest cities in the U.S. with a citywide average income of approximately $261,010, providing a prosperous, high disposable income customer base to support the local economy.
- Competitive, High-Barrier Market: Indian Wells’ strict zoning and development regulations limit new construction, preserving property value, reducing competition for tenants amongst landlords, and creating an environment for continued rent growth potential.
- Prominent Highway 111 Frontage: ±260 feet of frontage and visibility to ±40,700 vehicles per day along Highway 111, the Coachella Valley’s primary commercial thoroughfare.
- Proximity to Premier Medical Facilities: Surrounded by renowned healthcare facilities such as Eisenhower Health, Desert Regional Medical Center, and a variety of specialty practices, there exists significant demand for medical office space in the area with an increasingly constrained supply.
- 6.75% In-Place Cap Rate: The property is priced at a 6.75% cap rate based on actual 89% occupancy, offering investors the opportunity to realize upside through the lease-up of the remaining 11% of vacancy. If leased at $1.50/SF NNN, the asset features a proforma yield of ±7.88% at 100% occupancy.
- Diverse Income Stream: The property boasts a well-balanced tenant mix, with no single tenant accounting for more than 37% of the overall income, reducing vacancy risk and creating strong tenant synergy.
- Continued Tenant Commitment: Amongst renewals from the majority of other tenants— HALO Diagnostics, a longstanding tenant operating multiple facilities throughout the Coachella Valley, utilizes the subject property as its central “hub” and has renewed its lease for an additional 10 years.
- Highly Invested Tenants: Medical offices, wealth management firms, and health-oriented businesses tend to make substantial tenant improvement investments, demonstrating deep commitment to their spaces and reducing the likelihood of relocation.
- Significant Regional Economic Growth: The Coachella Valley continues to experience population growth at a rate nearly double the US average (Coachella Valley: 1.65% annually; US: 0.84% annually), creating continued demand for healthcare, financial services, and general commercial businesses.
- Population Expansion: The Coachella Valley is projected to experience continued population growth due to its desirable lifestyle, increasing number of retirees, and expanding healthcare infrastructure. This demographic shift directly supports demand for medical and professional office space.
- Replaceable Leased Rates with Upside Potential: Rents at the property average $1.89/SF NNN, significantly below market rates with the most recent renewal achieving $2.91/SF NNN. The property provides a compelling opportunity for investors to capture future rental growth as the market continues to strengthen.
- Embedded Annual Increases: Nearly every lease features a built-in annual increase of 3% or greater, allowing the income and yield to grow significantly as it compounds over time.
Description
Progressive Real Estate Partners is proud to present the Indian Wells Health & Wealth Center, a landmark medical office asset located in the prestigious and affluent community of Indian Wells, CA. Boasting striking and unique architecture, the property has long attracted a diverse and stable tenant mix of medical and financial service professionals, including nationally and regionally recognized brands such as Charles Schwab, Halo Diagnostics, Mercer Financial, and SBEMP Law, making it a cornerstone of the community’s limited commercial landscape. This property’s landmark status, prime Highway 111 location, diverse income stream, upside potential, and iconic design make it an exceptional investment in one of Southern California’s most affluent and exclusive cities.
Prominent Highway 111 Frontage: ±260 feet of frontage and visibility to ±40,700 vehicles per day along Highway 111, the Coachella Valley’s primary commercial thoroughfare.
