Calexico Border Hub · Investment Memorandum

01 · Investment Highlights

Eight reasons this site
is irreplaceable

01

Hard-Corner Location

Signalized intersection of Hwy 111 & Hwy 98 — California's two primary border arteries. Maximum visibility, maximum traffic capture.

02

75,000+ Vehicles/Day

Verified AADT count at the intersection. Captive audience of cross-border shoppers, commuters, and commercial operators.

03

3rd Largest US-Mexico POE

Calexico West Port of Entry: 5.43M vehicles and 3.16M pedestrians crossing annually. Within 1 mile of the site.

04

Opportunity Zone Eligible

Census Tract 06025012100. Federal tax benefits: capital gains deferral, step-up, and potential elimination on qualifying investments.

05

6 Consolidated APNs

1.02 acres assembled under common ownership — rare in this trade area. Immediately developable without lot assembly risk.

06

Nearshoring Tailwind

Mexicali has attracted $3B+ in nearshoring investment 2022–2026, driving unprecedented demand for cross-border commercial real estate.

07

Multiple Exit Strategies

Site supports hotel, QSR, fuel station, car wash, retail strip, residential, or mixed-use — maximizing buyer flexibility and IRR.

08

Below Replacement Cost

At $33.91/sqft, this site is priced at a fraction of comparable hard-corner commercial land in San Diego ($80–200/sqft). Structural discount to replacement.

02 · Property Overview

Six APNs,
one consolidated opportunity

Physical Profile

Total Area44,241 sq ft · 1.02 acres

Total APNs6 (058-155-003 thru 008)

Vacant Lots5 lots · 37,241 sq ft

Improved LotAPN-006 · Food Service structure

SubdivisionRancho Park Sub 2

JurisdictionCity of Calexico

Tax Rate AreaTRA 2000

Financial Profile

Asking Price$1,500,000 USD

Price per SqFt$33.91 / sq ft

Assessed Value (base)$305,781

Land Assessed$143,773

Improvements (APN-006)$162,008

Ground Lease Potential$100–150K / year

Cap Rate (ground lease)6.7–10%

APN	Use Class	Sq Ft	Land Assessed	Improvements	Net Assessed
058-155-003	Commercial / Vacant	7,448	$17,350	—	$17,350
058-155-004	Commercial / Vacant	7,448	$17,350	—	$17,350
058-155-005	Commercial / Vacant	7,448	$17,350	—	$17,350
058-155-006	Commercial / Food Service ★	7,000	$17,323	$162,008	$179,331
058-155-007	Commercial / Vacant	7,449	$37,200	—	$37,200
058-155-008	Commercial / Vacant	7,448	$37,200	—	$37,200

03 · Market & Location

The most trafficked
commercial corner in Imperial Valley

Calexico-Mexicali is the Western Hemisphere's most active binational metropolitan area by commercial crossing volume. The subject property sits at the nexus of every major traffic flow.

Daily vehicles at intersection

75,000+/day

POE vehicle crossings/year

5.43M/yr

POE pedestrian crossings/yr

3.16M/yr

Mexicali population

1M+

Nearshoring investment (22–26)

$3B+

Hwy 98 infrastructure invest.

$70M (2024)

Demand Drivers

Cross-border fuel demandVery High

QSR / fast casualHigh · underserved

Hotel / extended stayHigh · zero supply

Automotive servicesHigh

Neighborhood retailModerate–High

Competitive Context

Hotels within 0.5 miles0

Gas stations at intersection0

QSR drive-through at corner0

Car wash within trade area1 (aging facility)

POE rank by volume (national)3rd largest single entry

04 · Investment Scenarios

Three clear paths to
superior returns

★ Recommended

Ground Lease Strategy

Acquire the land and lease to an operator (hotel, QSR, or fuel) under a 25–40 year ground lease with CPI escalation. Zero development risk. Passive income from day one.

Annual Ground Lease Income

$100–150K / year

Investment Required

$1,500,000 (land only)

Cash-on-Cash Return

6.7% – 10% Year 1

10-Year Income (escalated)

$1.2M – $1.8M

High Return

Build-to-Suit Development

Develop 2–3 APNs as a hotel or QSR pad. Lease the remaining APNs as ground leases. Maximize total return through phased development + passive income on remaining land.

Total Investment (phased)

$3M – $8M

Stabilized NOI

$400K – $800K / yr

Unlevered IRR (10yr)

12% – 18%

Exit Cap Rate (est.)

6.0% – 7.5%

Land Banking

Hold & Appreciate

Acquire at current price. Land bank while border infrastructure improvements increase value. Sell in 3–5 years to a REIT or institutional developer as a stabilized, permitted pad site.

Purchase Price

$1,500,000

Est. Annual Appreciation

8% – 14% / yr

5-Year Exit Value (est.)

$2.2M – $2.9M

Equity Multiple (5yr)

1.5x – 1.9x

💡 Best execution: Ground lease APNs 007+008 to a hotel operator ($90–120K/yr), QSR on APNs 003+004 ($60–80K/yr), and fuel station on APNs 005+006 ($80–100K/yr). Combined annual income: $230–300K on a $1.5M investment = 15–20% cash-on-cash return with zero development exposure.

05 · Tax Incentives & Capital Programs

Four federal programs
that amplify your return

Federal

Opportunity Zone

Census Tract 06025012100. Defer capital gains on prior investments. After 10 years in QOF, appreciation on OZ investment is 100% tax-free.

Potential tax savings: $200K–$500K+

Federal

New Markets Tax Credit

39% federal tax credit on qualified equity investment in low-income community businesses. Available through CDFI intermediaries.

Up to $585K credit on $1.5M investment

Federal / Import

Foreign Trade Zone #257

Adjacent to Imperial Valley FTZ. Import/export tariff exemptions for manufacturing, distribution and assembly operations.

Significant for industrial or logistics use

California

California Competes

Income tax credit negotiated with Governor's Office of Business & Economic Development (GO-Biz) for businesses that create jobs in California.

Up to $20M credit per project

SBA

SBA 504 Loan Program

Up to 40% of project cost at below-market fixed rates for 20 years. Particularly advantageous for hotel or retail development on this site.

Reduce effective cost of capital

Federal · IRS

EB-5 Investor Visa

Structure development to attract EB-5 capital from Mexico, China or other foreign investors. $800K minimum investment per visa applicant in TEA-designated areas.

Calexico qualifies as TEA

06 · Path Forward

A straightforward
path to close

01

IMMEDIATE

Execute Letter of Intent (LOI)

Non-binding LOI establishing: purchase price, deposit ($50K earnest money), due diligence period (30–45 days), and proposed closing timeline. Secures the site while you conduct diligence.

02

DAYS 1–30 · DUE DILIGENCE

Property & Market Verification

Title search, ALTA survey, Phase I ESA, zoning confirmation, traffic study review, comparable sales analysis, and franchise/operator letters of interest for your intended use.

03

DAYS 30–45 · LEGAL

Purchase & Sale Agreement

Execute formal PSA with Imperial County Title Company. Finalize financing structure, incentive program applications, and ground lease term sheet if applicable.

04

DAY 45–60 · CLOSE

Close of Escrow

Fund escrow, record deed, take possession. Begin permitting and franchise LOI process simultaneously. First ground lease income possible within 12–18 months of close.

✅ Seller is motivated and prepared to close within 60 days. All APN documentation, tax records, title chain and traffic data are available immediately in the secure data room upon execution of NDA/LOI.

CalexicoBorder Hub

Eight reasons this siteis irreplaceable