Palm Desert Mixed-Use Development – Equity Raise in Progress (Land Lease Model)

[Justin Steubs]

Investment Info:

Large multi-family (5+ units) commercial investment investment in Center.

3-story mixed-use development (80% residential, 20% retail) on leased land in Palm Desert.
~152,000 RSF total, with a projected stabilized value of $40M.
Project is in early predevelopment phase with GC already secured.
Capital raise currently underway for lease structuring and entitlement costs.

What made you interested in investing in this type of deal?

I’ve developed ground-up for 20+ years, but this one stood out due to its unique land lease structure and long-term upside. The location is strong, and the cost basis is far more efficient than a land purchase.

How did you find this deal and how did you negotiate it?

I sourced it through a local broker relationship. The opportunity to structure a lease instead of a purchase opened up room for creative entitlement and capital stack planning.

How did you finance this deal?

We’re currently raising equity to secure the lease and fund predevelopment. Full construction financing will be layered in once entitlement is locked and pre-lease discussions begin.

How did you add value to the deal?

We’re currently raising equity to secure the lease and fund predevelopment. Full construction financing will be layered in once entitlement is locked and pre-lease discussions begin.

What was the outcome?

The project is currently in the early-stage capital raise and entitlement phase. The goal is to break ground in Q1 2026 after securing equity and full permitting.

Lessons learned? Challenges?

Entitlement timelines in Southern California are unpredictable, especially with leased land. Building the right team early — GC, legal, and capital — is key to maintaining momentum.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Always open to recommending great partners once deals close and prove themselves.