45300 Portola Ave - USPS: Trophy El Paseo Corner Parcel 13,334 SF Specialty Building Offered at $5,472,007 CAD at a 5.60% Cap Rate in Palm Desert, CA 92260

Pegasus Investments Real Estate Advisory, as exclusive representative for the Seller, are excited to offer investors the rare opportunity to acquire the fee simple interest in a United States Postal Service (“USPS”) located in Palm Desert, California (“the Property”). Strategically positioned on a 1.32-acre corner lot at the intersection of Portola Avenue (18,000 VPD) and El Paseo (5,500), two of the Coachella Valley’s most iconic and heavily trafficked roadways, and just one half-block from Highway 111 (45,000 VPD), the Property enjoys irreplaceable frontage in one of Southern California’s most prestigious retail and lifestyle destinations. The USPS, which ranks in the top 85th percentile of all USPS retail locations across the country in foot traffic (per placer.ai), has operated from this location for over 55 years and recently reaffirmed its commitment by executing a new 5-year lease extension, with two additional 5-year renewal options that each include 10% rent increases. The lease is modified gross, with the tenant directly responsible for real estate taxes, protecting new ownership from tax reassessment exposure.
The surrounding El Paseo corridor, commonly referred to as the “Rodeo Drive of the Desert”, features a dynamic mix of luxury retailers, national brands, and fine dining establishments such as Gucci, Tiffany & Co., Apple, Lululemon, Shake Shack, and Mastro’s Steakhouse. The area attracts a highly affluent demographic, including residents of nearby gated communities like The Reserve, The Vintage Club, and Ironwood Country Club, where home values routinely exceed seven figures. In addition to serving as the only USPS location within a three-mile radius, the Property benefits from a robust and growing population of approximately 530,000 permanent residents, as well as an influx of over 500,000 seasonal visitors each year. With a parking ratio exceeding 21 spaces per 1,000 square feet, the site is well-equipped to handle steady foot traffic driven by both daily service needs and high seasonal demand.
Beyond the security of a longstanding government tenant and immediate income, the Property also presents both a mark-to-market rent scenario and a compelling redevelopment story. At just $15 per square foot, the current rent is dramatically below market for the El Paseo corridor, providing a clear path for future rental growth. Upon lease expiration, investors will have the opportunity to reset the rent to reflect current market conditions, unlocking significant value. Additionally, the asset can be viewed as a covered land play, with an attractive acquisition basis that sits below residual land value, offering long-term upside independent of in-place cash flow. As one of the few remaining large corner parcels along El Paseo, the site offers significant long-term upside for investors interested in repositioning the asset for higher and better use. Whether reimagined as a mixed-use development or converted to a ground lease for a nationally recognized QSR or retail tenant, the site’s scale, visibility, and location make it ideally suited for future transformation. With the current lease in place providing predictable income through at least 2030, the Property offers investors the rare chance to blend short-term cash flow with a future value creation strategy in one of the most sought-after markets in the western United States.