A 25,590-square-foot retail property located at 73255 El Paseo in Palm Desert has been brought to market with an asking price of $11.38 million, or approximately $444 per square foot. The property, known as Sage Place, occupies a 1.31-acre parcel and is offered on a fee-simple basis. CBRE is managing the listing on behalf of a private owner who acquired the site in 2017 for $7.2 million.
Originally constructed in 1977, the asset is zoned C1 and currently reports a net operating income (NOI) of $682,555, reflecting a capitalization rate of six percent. According to the offering materials, Sage Place is 90 percent leased to a mix of retail, food, service-retail, and boutique office tenants, with the remaining space providing an opportunity for additional lease-up and income growth. Based on projections provided by the broker, the property’s NOI could rise by over $322,000 across a 10-year hold period through scheduled rent escalations, lease renewals at market rates, and continued stabilization of remaining vacancies. The current rent roll reportedly contains below-market leases, allowing potential future upside as tenant terms reset.
The marketing flyer also notes that recent leasing activity at Sage Place includes agreements with Hundenfolk in January 2024—followed by an expansion in 2025—as well as new leases signed by Coco Rose in November 2023 and Desert Psychiatric Associates in January 2024. Brokers indicate that the leasing activity has supported stable tenancy, signaling continued demand within the trade area.
Positioned at a corner location just off El Paseo—one of Palm Desert’s central shopping corridors—Sage Place is reportedly adjacent to high pedestrian and vehicle traffic counts, with more than 14,000 cars per day on El Paseo and over 36,600 cars per day on nearby Highway 111. This location, often referred to as the city’s “high street” retail district, hosts more than 300 businesses including restaurants, designer apparel brands, galleries, and service providers.
CBRE’s Erin Smith and Matthew Rifkin are overseeing the listing.
Meanwhile, a fully leased 21,783-square-foot retail center called Fountain Plaza, located at 73625 Highway 111 in Palm Desert, has also been listed for sale at $7.25 million, or approximately $333 per square foot. Situated on a 0.92-acre site and zoned Downtown (D), the property includes 20 tenants and produces a net operating income of $499,296, representing a 6.90 percent capitalization rate.
