La Quinta, CA - Hobby Lobby

Description:

SRS Capital Markets is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an NNN leased, corporate guaranteed, Hobby Lobby investment property located in La Quinta, California. The tenant, Hobby Lobby Stores, Inc., has over 4 years remaining in their initial lease term with 4 (5-year) options to extend. The lease features an approximate 4% rental increase at the beginning of each option period, growing NOI and hedging against inflation. The lease is corporate guaranteed by Hobby Lobby Stores, Inc., and is NNN with landlord responsibilities limited to roof and structure. Hobby Lobby is the largest privately owned arts-and-crafts retailer in the world with over 900 stores in forty-six states.

Hobby Lobby is well positioned between two (2) signalized, hard corner intersections, Hwy-111 and Adams Street (57,900+ combined VPD), and Hwy-111 and Washington Street (66,400+ combined VPD). Hobby Lobby is an anchor to One Eleven La Quinta Center, a 1.1 million SF power center that also includes Stater Bros., Kohl’s, and Ross Dress for Less. One Eleven La Quinta Center is one of the region’s premier retail centers servicing the communities of La Quinta, Palm Desert, and Indio. One Eleven La Quinta Center is directly adjacent to retail centers The Pavilion at La Quinta (166,500 SF) and Washington Park (521,000 SF). Other nearby shopping centers include The Centre at La Quinta (450,800 SF), Jefferson Plaza (170,000 SF), and Komar Desert Center (228,000 SF). State Highway 111 is the primary retail corridor serving the trade area, with other nearby national/credit tenants including Walmart Supercenter, Costco Wholesale, Target, The Home Depot, Trader Joe’s, Lowe’s Home Improvement, T.J. Maxx, Best Buy, and more. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure for Hobby Lobby. Additionally, Indian Wells Tennis Garden (16,100 seats) is less than 2 miles southeast of the site, further increasing exposure to the property. Home of the BNP Paribas Open, the Indian Wells Tennis Garden contains the second largest outdoor tennis stadium in the world and attracts more than 450,000 fans on a yearly basis. Moreover, the site is within close proximity to several housing communities including Hadley Villas (80 units), Wolf Waters Place (218 units), and Aventine Apartment Homes (200 units), providing a direct consumer base from which to draw. The immediate trade area boasts some of the highest average household incomes in Southern California, with average household income within one-mile exceeding $114,000. Additionally, there are moreover 66,000 consumers and over 24,000 daytime employees within a 3-mile radius of the subject property.