A fully occupied 21,783-square-foot retail center at 73625 Highway 111 in Palm Desert has been listed for sale at $7.25 million, equating to approximately $333 per square foot. Known as Fountain Plaza, the 0.92-acre property is zoned Downtown (D) and is being offered on a fee-simple basis. Voit Real Estate Services is managing the listing. Public property records show the current owner is an entity affiliated with a living trust.
The property comprises 20 tenants and is currently 100 percent leased, generating a net operating income of $499,296, which reflects a 6.90 percent cap rate. Built in 1952, the asset offers 3.01 parking spaces per 1,000 square feet, totaling more than 60 on-site spaces. According to the marketing flyer, the center is anchored by Keedy’s Diner, a long-standing tenant that occupies 18 percent of the property’s gross leasable area. In continuous operation since 1957, the diner is considered a local establishment with a multigenerational customer base. The remainder of the tenant mix consists of small-format users, each leasing between 600 and 1,400 square feet. Brokers note that these smaller units represent three to six percent of the GLA per tenant, offering a diversified rent roll and shorter lease terms.
Marketing materials underline the property’s location within Palm Desert’s central retail corridor along El Paseo and Highway 111. El Paseo is noted for its high pedestrian activity, while Highway 111 is among the area’s main vehicular routes, with daily traffic volumes reportedly exceeding 48,000 cars. In addition, the stabilized income profile and consistent tenant history are emphasized as contributing factors to the property’s investment profile.
Voit’s Josh Salik and Max Stone are handling the listing.
CBRE’s Q1 2025 report indicates that the Inland Empire retail market experienced a slight softening, with the availability rate rising to 6.8 percent, up 30 basis points from the previous quarter, attributed to short-term demand impacts stemming from economic uncertainty. Average net asking rents declined modestly to $1.72 per square foot, down $0.02 from Q4 2024. Despite regional headwinds, Palm Desert continued to draw investor attention, as seen in two notable Q1 transactions along El Paseo. Eppd LLC acquired a 10,000-square-foot property at 73670 El Paseo for $8.4 million (or $840 per square foot), while Erik and Chad Vogt purchased a 5,400-square-foot asset at 73730 El Paseo for $2.55 million (or $472 per square foot). These sales underscore localized strength in Palm Desert’s retail corridor even amid broader market uncertainty.
