Restaurant
Denny’s – Leasehold Interest (Building Only)
42455 Washington St, Palm Desert, CA 92211
Listing Price: $2,250,000
Cap Rate
8.00%
Tenant Name
Denny's
Years Remaining On Lease
15.6
Gross SF
4,500
Guarantor
Franchisee Guarantee
Rentable SF
4,500
Price/Gross SF
$500.00
Lease Type
Absolute Net
Rent Per Square Feet
$40.00
Investment Overview
42455 Washington St., Palm Desert, CA
Denny’s – Leasehold Interest (Building Only)
Investment Highlights
- 16-YEAR ABSOLUTE-NET LEASE | ZERO LANDLORD RESPONSIBILITIES : Landlord is fully pass-through—no expense obligations for roof, structure, or site; tenant also pays ground lease rent of $107,800.
- 10% RENTAL INCREASES EVERY 5 YEARS: Scheduled escalations compound NOI from $180K ? $198K ? $217,800 ? $239,580 across the term, aligning with ground lease co-termination.
- 2022 CONSTRUCTION | SIGNATURE DENNY'S FORMAT (4,500 SF + AMPLE PARKING): Recent-build, free-standing facility on a 1.64-acre site with full surface parking—ideal for dine-in and drive-thru traffic.
- PRIME RETAIL CORRIDOR | HIGH VISIBILITY ON WASHINGTON STREET: Located on a major east–west commercial artery in Palm Desert, within walking distance to El Paseo, anchored by thriving local and regional retailers.
- HIGH-TRAFFIC CO-TENANCY | NEAR ZIELONA STREET RETAIL NODES: Surrounded by established restaurants, banks, and service businesses, benefiting from both year-round and seasonal Coachella Valley tourism.
- AFFLUENT, AGING DEMOGRAPHIC WITH SEASONAL BOOST: Palm Desert (pop. ~51K, median age 56.7) draws a mature, stable population base with strong discretionary income and sustained resort-tourism appeal.
Exclusively Listed By
Listing Price: $2,250,000
Cap Rate
8.00%
Tenant Name
Denny's
Years Remaining On Lease
15.6
Gross SF
4,500
Guarantor
Franchisee Guarantee
Rentable SF
4,500
Price/Gross SF
$500.00
Lease Type
Absolute Net
Rent Per Square Feet
$40.00
Investment Highlights
- 16-YEAR ABSOLUTE-NET LEASE | ZERO LANDLORD RESPONSIBILITIES : Landlord is fully pass-through—no expense obligations for roof, structure, or site; tenant also pays ground lease rent of $107,800.
- 10% RENTAL INCREASES EVERY 5 YEARS: Scheduled escalations compound NOI from $180K ? $198K ? $217,800 ? $239,580 across the term, aligning with ground lease co-termination.
- 2022 CONSTRUCTION | SIGNATURE DENNY'S FORMAT (4,500 SF + AMPLE PARKING): Recent-build, free-standing facility on a 1.64-acre site with full surface parking—ideal for dine-in and drive-thru traffic.
- PRIME RETAIL CORRIDOR | HIGH VISIBILITY ON WASHINGTON STREET: Located on a major east–west commercial artery in Palm Desert, within walking distance to El Paseo, anchored by thriving local and regional retailers.
- HIGH-TRAFFIC CO-TENANCY | NEAR ZIELONA STREET RETAIL NODES: Surrounded by established restaurants, banks, and service businesses, benefiting from both year-round and seasonal Coachella Valley tourism.
- AFFLUENT, AGING DEMOGRAPHIC WITH SEASONAL BOOST: Palm Desert (pop. ~51K, median age 56.7) draws a mature, stable population base with strong discretionary income and sustained resort-tourism appeal.
Investment Overview
42455 Washington St., Palm Desert, CA
Exclusively Listed By
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