Tenant: Cardenas Market | Indio, CA Premises: 58,904 SF Renewal Options: 2 x 7.5 Years
Lease Expiration: 2/28/2034 Lease Type: Absolute NNN Rental Increases: 10% Every 5 Years; Next Increase 3/2026
Sands Investment Group is Pleased to Exclusively Offer For Sale the 58,904 SF Absolute NNN Lease Grocery Investment Property Located at 82266 Highway 111 in Indio, California. Cardenas Markets is One of the Largest Hispanic Grocery Companies in the U.S. and Recently Extended Its Lease Demonstrating Its Confidence in This Location. This Deal Offers a Long-Term Secure Income Stream, Strong Rental Increases With a Pandemic, Recession and an Internet Resistant Tenant.
LONG TERM LEASE WITH LEADING REGIONAL GROCERY TENANT
Cardenas is a Regional Latino Grocery Store Chain With 56+ Locations in California, Arizona and Nevada; Annual Sales in Excess of $1 Billion Dollars
The Absolute Triple Net (NNN) Lease Consists of Over 13 Years of Primary Term Remaining With Two 7.5 Year Options to Extend With Zero Landlord Responsibilities
Strong Rental Increases – Ten Percent (10%) Every Five Years Providing a Strong Hedge Against Inflation
Cardenas is Owned By KKR & Co. Inc., a Global Investment Firm With Over $150 Billion Under Asset Management (NYSE: KKR)
Confidence in Location – Tenant Recently Extended the Initial Term of the Lease Demonstrating Strong Confidence in This Location For the Long-Term Investment Outlook
Long Term Operating History – Tenant Has Resided at This Location Since 2005 and Has Invested Over $5 Million Into Property Improvements
DAILY NEEDS & NECESSITY BASED TENANT
Tenant Has Remained Open & Paying Rent Throughout the COVID-19 Pandemic and Proven By Constant Traffic Flow to Be a Favorite Regional Grocer Amongst the Greater Palm Springs Population
Grocery Stores Provide a “Daily Needs” For Consumers Marking the Property Recession and Internet Resistant
DOMINANT DESTINATION LOCATION WITH HIGHWAY FRONTAGE
Strong Frontage Along Highway 111 – Average Traffic Counts Over 34,268 Vehicles Per Day
Adjacent Retailers Include CVS Pharmacy, AutoZone, Jack in the Box and Others Providing a Destination Location
Located Directly Across the Street From Indio Grand Marketplace – Haagan Companies Planning a Major Redevelopment and Expansion of the Mall Into a Vibrant Retail, Entertainment and Dining Destination Attractive to Both Local Residents and Tourists
The Palm Springs & Indio Market Has Experienced a Massive Increase in Home Sales From High Buyer Demand Throughout 2020
Indio is Home to the Annual Coachella Music Festival, an Annual Event That Draws an Average of Nearly 600,000 People Over Six Days, and Stagecoach Music Festival, Which Draws an Annual Average Crowd Of 70,000 People Over Three Days
Densely Populated Area With Over 180,241 People Within 5-Miles
Affluent Trade Area With an Average Household Income of Over $81,136 Within 5-Miles
Strong Target Customer Base With Over 70% Hispanic Population Within 3-Miles
Indio is Located 23-Miles From Downtown Palm Springs, 128-Miles From Downtown Los Angeles and 131-Miles From San Diego
Read Additional Thought Leadership Content From SIG, Specializing in Absolute Triple Net Lease Opportunities
Tenant Overview
Cardenas Markets is headquartered in Ontario, California and has been in operation since 1981. Cardenas operates store locations in California, Nevada and now Arizona. Cardenas is known and respected as a prominent Latino market with a unique tradition of authentic flavors. Cardenas Markets offer customers, the best shopping experience with a wide selection of quality and fresh products and great service at a superior value. They are not just a grocery store; they are more like their family serving them. Great quality and variety at a great value is what customer will find in the produce department, where they offer traditional flavors, fruits and vegetables from across USA, Mexico, Central & South America and other different countries.
Cardenas is owned by KKR & Co. Inc., a Global Investment Firm. KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR purchased two Hispanic chains, Northern California Mi Pueblo and Ontario, California–based Cardenas.