City's Property Investment to Pay Off as Commercial Rental

This is one of the primary reasons why the City of Indian Wells seized the rare opportunity to add to its land portfolio by strategically investing in two commercial buildings that presented both long-term growth potential and high future resale value. In the fall of 2009 and spring of 2010, the City purchased the 45-200 and 45-300 Club Drive buildings for the total price point of $1.483 million. The attractive rate of return on this investment is approximately 6 percent.

The City’s intent was to convert part of the 7,526 square-foot 45-200 Club Drive building into a community center or use it for other purposes. However, after a resident survey, intensive committee review and City Council deliberation, the City determined the community center concept was not financially viable. To ensure the City’s long-term financial stability and its ability to provide important municipal services, the City has implemented several reductions in the 2011/2012 operating budget to offset the State of California takeaway of Redevelopment Agency monies.

Rather than let the buildings remain vacant, City officials made an astute decision to convert the 45-200 building into office space for commercial tenants. This, in turn, necessitated limited upgrades to the facility. This past September and October, the Public Works Department spearheaded a $285,000 rehabilitation project, which included replacing the HVAC units, roof, plumbing, masonry and concrete installation, exterior and interior painting, lighting and landscape renovations, and other exterior upgrades to give the entire complex a refreshed look.

In mid-October, Desert Forum, Inc. – which produces the Desert Town Hall series – moved into Suite C. The Indian Wells Chamber of Commerce and a private attorney are set to lease two offices in the building commencing on March 1, 2012. In addition, Indian Wells HOAs and other city-based organizations will have complimentary access to a public meeting room and conference room. To be managed by the Chamber of Commerce, the conference space will hold 30-40 people and be available daytime and evening hours. The City will also likely continue to use the building as an election polling location and is actively seeking more tenants for full occupancy.

A rehabilitation project is upcoming for the 2,200 square-foot 45-300 Club Drive building, for which the City is currently pursuing other leasing opportunities.

For more information about these commercial rental properties, please contact the City of Indian Wells Planning Director, Barbara Carson at (760) 346-2489.