LOS ANGELES, CA — DECEMBER 8, 2020 — Centre Urban Real Estate Services successfully solicited, negotiated and arranged the $1,318,000 debt recapitalization of the existing loan on 1700 Camino Real located in Palm Springs, California. The lender is Farmers & Merchants Bank of Long Beach. The loan is fixed for six years at 3.75%. Despite the severe impacts of the COVID-19 pandemic on commercial retail, particularly on food & beverage, the property was able to maintain 100% occupancy and is now at full collections. Centre Urban capitalized on the property’s quality, market resiliency, tenant performance, and low leverage to generate attractive loan terms.
The 5,800 square foot commercial property is a legacy asset of Tahiti Partners Properties Corporation, which successfully acquired, designed, entitled and developed the property in 2008 as a component of Oceo Palm Springs, its larger, award-winning development of nine private courtyard homes and 25 townhomes of built in the style of mid-century modern design. The property is located across from the renovated $35 million Ace Hotel. Amidst a local population of over 45,000 and within walking distance of over 1,000 hotel rooms, the property’s location would be considered prime. The strikingly pristine mid-century modern architecture has remarkable desert mountain views and produces high visibility from heavily trafficked East Palm Canyon Drive and Camino Real.
The property is anchored by award-winning Koffi. Voted Coachella Valley's best coffee shop, Koffi is a Palm Springs staple for locals and visitors alike. Established in 2002, Koffi is locally owned and operated, with four locations in Palm Springs and Rancho Mirage. In 2019, Centre Urban successfully leased up 4,200 square feet of vacant restaurant space, equipped with a state-of-the-art kitchen and a transformable dining space, to P.S. Underground. Established in 2012 and described as a “dining adventure” where menus are kept secret, ingredients are sourced from local seasonal ingredients, and no two events are the same, P.S. Underground had called art galleries, rooftops, gardens, private estates, shuttered restaurants, and warehouses home until establishing its permanent location at the property. Both tenants continue to successfully navigate the COVID-19 pandemic under Centre Urban’s management of the property.
Centre Urban Real Estate Services is the brokerage, property management and advisory arm of Centre Urban Real Estate Partners, Inc., a privately held, vertically integrated commercial real estate investment, development, advisory, and asset management company originally founded in 2001. Part of Centre Urban's suite of services include third-party investment advisory on debt placement and capitalization.
For more information:
Eugene F. Page
Principal, Brokerage & Advisory
Centre Urban Marketing