The subject property is located in the City of La Quinta Sphere of Influence (SOI) The current local governing agency is the County of Riverside Vista Santa Rosa Community. The future Low Density Residential designation in the City of La Quinta General Plan 2035 is somewhat consistent with recent Vista Santa Rosa Community board input on future land use.
The property was originally developed as a Coachella Valley based nursery by a wholesale nursery company that distributed its products to Big Box stores in Southern California. The original greenhouse improvement costs excluding the land exceeded the current asking price of the property by several million dollars. The property has a 500 gallon per minute irrigation well & pump station with storage tanks for the nursery irrigation system.
Cannabis Hemp cultivation for CBD oil production was the most recent agriculture activity at the Nursery facility. A new owner could consider leasing the greenhouse to a new CBD cannabis grower tenant. The property could also be operated as a wholesale nursery to the landscape construction & maintenance industry in the Coachella Valley.
The property is located in an Opportunity Zone, which offers a tax shelter advantage to a new owner. Opportunity Zones offer tax benefits to investors who elect to defer tax on capital gains if they timely invest those gain amounts in a Qualified Zone property. The length of time the taxpayer holds the investment determines the tax benefits they receive. If the investor holds the investment for at least five years, the basis of the investment increases by 10% of the deferred gain. If the investor holds the investment for at least seven years, the basis of the investment increases by 15% of the deferred gain. If the investor holds the investment for at least 10 years, the investor is eligible to adjust the basis of the investment to the fair market value (Sale Price) on the date the QOF investment is sold or exchanged.
Coachella Valley Water (CVWD) is the local service provider for water & sewer. There is a sewer line located at the intersection of Avenue 58 and Jackson Street, approximately 1590 lineal feet west of the subject property. A commercial domestic potable water well is estimated to cost approximately $1,000,000, resulting in an onsite cost of approximately $5,000 pre lot (200 lots). A well can be developed in the tract and dedicated to CVWD, for subdivision service. The Imperial Irrigation District (IID) is the current service provider for electricity. The district recently developed a new main transmission line crossing the front of the subject property on Avenue 58, going east from its substation facilities located west of the subject property, at Ave. 58 & Monroe,.
The property is located in the County of Riverside, which is in the eastern portion of the Inland Empire of Southern California. Riverside County has become the fastest growing County in California, experiencing the most substantial growth among large counties in California, with a population increase of 2.11% to reach 2.47 million people.
The City of La Quinta is a highly sought after area by homebuyers, especially new home buyers. Home values for New & Resale product has remained high, as buyers find the Coachella Valley a highly desirable location to consider for a second home and/or retirement. A lengthy process for new home entitlement, limited new home release by Merchant Builders and high interest rates, limited resale homes for sale due to high interest rates, has resulted in low inventory & consistently higher home prices.
The Coachella Valley is a world re-known Destination Resort Region, with over 100 golf courses located in the Valley. In 2022, 14.1 million visitors came to the Valley, with a direct spending impact of $7.1 billion. The Coachella Valley is home for 7 months of the year to some of the wealthiest people from all over the world.
Robert Castro
Arris Properties
