La Quinta Retail Sells for 147% Total Return to DST Investors

Capital Square, a sponsor of tax-advantaged real estate investments and an active developer and manager of housing communities, has sold Komar Desert Center, a Costco shadow-anchored retail center located in the Palm Springs suburb of La Quinta. Deal terms weren’t disclosed. The property was owned by a group of investors in a Capital Square-sponsored Delaware statutory trust (DST) who realized a 146.60% total return, or a 5.26% annualized return, from their 1031 exchange investment.

“In spite of the pandemic with mandatory shutdowns and resultant tenant issues, this Costco shadow-anchored retail center remained stable, fully operational and profitable throughout the holding period,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “While best known currently for sponsoring multifamily properties, the Capital Square team also has expertise with retail properties such as Komar, along with medical and industrial properties.”

Constructed in 2008, Komar Desert Center is approximately three miles south of Interstate 10, connecting the Coachella Valley to Los Angeles to the west and Phoenix to the east. Also located near the property are the Rancho La Quinta Country Club Homes, the fully occupied Coral Mountain Apartments, and the Desert Sands Unified School District.

Photo courtesy of Crexi.