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7/08/25
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Two newly constructed, single-tenant retail properties at Cathedral Cove Center in downtown Cathedral City, CA were acquired by different buyers in separate sales totaling $8 mil. The properties are occupied by Circle K and Starbucks stores. Executive Vice Presidents Bill Asher and Jeff Lefko of Hanley Investment Group Real Estate Advisors represented the seller and developer, Newport Beach-based Fountainhead Development, in both deals.
Representative photo from Circle K |
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The Circle K-leased property, located at 68835 East Palm Canyon Drive, was purchased for $4.19 mil by a private 1031 exchange investor from Ventura. The 3.7k sf convenience store sits on a 1.08-acre pad and features a new 20-year absolute triple-net ground lease with 10% rental increases every five years. Circle K is slated to open in fall of 2025. The buyer was represented by Joe Ahearn of Pinnacle Estate Properties.
The Starbucks property, located at 68995 East Palm Canyon Drive, sold for $3.7 mil. The buyer, a private investor in a 1031 exchange from Roseville, was repped by Alexander Moore of SRS Real Estate Partners. The 1.9k sf café sits on a 0.79-acre pad and 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.
In January 2025, Hanley Investment Group also arranged the sale of a newly constructed Chipotle Mexican Grill Drive-Thru at Cathedral Cove Center. The 2.3k sf property, located on a 0.65-acre parcel, sold for $4.05 mil to a Los Angeles-based, all-cash 1031 exchange buyer. The sale closed within 30 days, prior to rent commencement or store opening, and achieved a record-low cap rate for a single-tenant Chipotle nationwide in 2025.
Cathedral Cove Center is located in an Opportunity Zone at the signalized intersection of East Palm Canyon Drive/Highway 111 and Date Palm Drive, one of Coachella Valley’s busiest intersections with over 55,000 cars per day. The tenant lineup at the Cathedral Cove Center includes a Farmer Boys Drive-Thru restaurant (coming soon for sale), along with previously sold pads leased to Circle K, Starbucks, and Chipotle Mexican Grill. A new residential development is planned directly behind the property.
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