dd's Discounts & VA Medical Clinic

Highlights:

• NATIONAL CREDIT TENANCY – Anchored by: dd’s Discounts (Ross Stores – S&P 500 / Fortune 500; 2,148 stores); Department of Veterans Affairs Outpatient Medical Clinic (operated by STG International – $480M revenue, 1,800+ employees; $5M invested into space); and Tesla Supercharges (16-Level 3 Destination Chargers)
• TOP-PERFORMING DD’S DISCOUNTS - This dd’s location ranks in the top 9% nationwide and #1 in the High Desert with an estimated 370,000 annual visitors, driving strong store sales and a rent-to-revenue ratio below 2%.(call broker for details).
• EARLY 20-YEAR VA RENEWAL – In 2025, the VA Outpatient Medical Clinic executed an early 20-year renewal with structured rent increases, including a 15% bump in 2031, demonstrating long-term commitment to the site and strong hedge against inflation.
• DD’S RENEWAL WITH RENT INCREASE – In 2025, dd’s Discounts exercised a 5-year option renewal with a 10% rent increase, demonstrating continued commitment to the property.
• LOW, REPLACEABLE RENTS - Average rents of approximately $0.86/SF NNN provide limited downside, strong tenant retention, excellent re-tenanting flexibility and upside potential over time.
• BELOW REPLACEMENT COST BASIS - Offered at just $161/SF, materially below estimated replacement cost for comparable retail and medical construction.
• MARK-TO-MARKET UPSIDE - dd’s current rent of approximately $0.65/SF NNN presents meaningful mark-to-market opportunity when the lease expires in January 2037. Current market rents for junior box space in the high desert range from $1.00 to $1.25/SF NNN.
• SURROUNDED BY TOP-RANKING RETAILERS - The property is adjacent to several nationally top-performing retailers including Costco (top 5% nationwide), AutoZone (top 1%), McDonald’s (top 3%), and In-Shape Health Club (top 4%), reinforcing the strength and traffic draw of the corridor.
• RECENT NEW RETAIL DEVELOPMENT - The immediate intersection has experienced significant recent investment with the addition of a brand-new Superior Grocers, Harbor Freight, and Western Dental, strengthening the surrounding tenant mix and consumer draw.
• OVER $600K OF RECENT CAPITAL IMPROVEMENTS - Including new roofing systems ($485K), parking lot LED lighting and an extensive grind/overlay of the parking lot ($150K).
• PRIME HIGH-TRAFFIC LOCATION NEAR I-15 - Positioned along 7th Street & La Paz Drive with approximately 24,280 vehicles per day and less than 0.4 miles from Interstate 15, the site benefits from strong visibility and regional accessibility.
• STRONG REGIONAL GROWTH FUNDAMENTALS - Victorville ranks #13 on SmartAsset’s list of Top 100 Boomtowns in America and serves as the primary commercial hub for the 600,000+ residents of the Victor Valley, supported by strong logistics, healthcare, and service-sector employment.
• VALUE-ADD DEVELOPMENT POTENTIAL - A ±3,750 SF former garden center can be enclosed to create additional rentable area, and excess parking at the rear of the site allows for potential future development, subject to city approvals.

Description:

Progressive Real Estate Partners & Hanley Investment Group are pleased to present the opportunity to acquire a 100% leased, national-credit anchored retail asset combining secure cash flow, embedded rent growth, and meaningful long-term upside in one of the High Desert’s top-performing retail corridors. The property is anchored by dd’s Discounts (backed by Ross Stores – S&P 500 / Fortune 500), a Department of Veterans Affairs Outpatient Clinic, and a 16-stall Tesla Supercharger station— creating a diversified, e-commerce-resistant income stream. In 2025, both anchors executed renewals, including a 20-year Veterans Affairs renewal with a 15% rent increase in 2031 and a 5-year dd’s Discounts option renewal with a 10% increase in 2032, which together push the blended yield to an attractive 7.40% by 2032. With replaceable rents averaging just $0.86/SF NNN and an appealing $161/SF below-replacement-cost basis, the asset provides exceptional downside protection. Additional upside includes a significant mark-to-market opportunity in 2037 and the ability to enclose ±3,750 SF of former garden center space for future income.

This dd’s location ranks in the top 9% nationwide and #1 in the High Desert with an estimated 370,000 annual visitors, driving strong store sales and a rent-to-revenue ratio below 2%.(call broker for details).

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