Coachella Valley Rents May Climb with Lack of New Construction

A 55-unit portfolio, Tiki Gardens Apartments and Shadow Hills Apartments in Palm Desert, recently sold to a private local buyer for $8.8 million. Located at 45325 Panorama Dr. and 74550-74610 Shadow Hills Rd., Tiki Gardens and Shadow Hills Apartments sit near El Paseo Drive, a shopping area considered the Rodeo Drive of the Coachella Valley.

The properties feature studio, one-bedroom/one-bathroom and two-bedroom/two-bath units. The portfolio consist of eight buildings which have been recently renovated. Shadow Hills Apartments allows the buyer to build new units on the property.

CBRE’s Cray Carlson and Kevin Sin represented the seller as well as the buyer.

“These two properties were previously marketed by a local Coachella Valley firm,” said Carlson. “We were quickly able to generate several offers. Both properties were a part of a 1031-Exchange. Coachella Valley has remained extremely stable throughout the COVID-19 crisis and has seen some of the highest rent increases in Southern California. We expect rents to continue to climb because of a lack of new construction of apartment units and the influx of renters that keep moving to the area.”