Land loans are a decidedly small element within SFG’s portfolio, and with rare exception, we focus on properties located in large markets. In that sense, this loan represented a bit of an anomaly, as it is dirt in Yucca Valley, a small, rural community in San Bernardino County. There were, however, several compelling factors that allowed SFG to seriously consider the request and ultimately fund the loan.
The subject property is three outparcels at the entrance to an existing, newer Home Depot Store. The signalized access at which the subject is located is also shared by a 220,000+s.f. Wal-Mart superstore presently under construction. Wal-Mart already has a smaller store in Yucca Valley, and their huge new store was no doubt warranted by a variety of factors, including the sales and demand from the large Marine Corps Air Ground Combat Center at Twenty-nine Palms. Because of the proven retail demand and activity, these outparcels are in high demand among retailers who wish to benefit from the dual draws of these two big box retailers that share the access and site. It also helped greatly that the loan had strong, experienced sponsorship and an LTV under 25%.
Ascertaining value was a difficult task, as the Yucca Valley submarket is small and the retail sales comps were few to non-existent. Special thanks to Maggie Montez with Lee & Associates’ Palm Desert office. Maggie and her experienced Team have long been the preeminent professionals for retail and commercial leasing and sales in the Coachella Valley and surrounding markets. SFG has relied on Maggie to assist with retail market conditions and value analysis in the Valley, we thank her for her time and many courtesies over the years, and we highly recommend Maggie and her Team when it comes to Coachella Valley retail and commercial.
