Fresh Market out for Palm Desert location

Palm Desert has all types of grocery markets, from convenience stores to a Walmart superstore and Neighborhood Market to high-end and specialty stores like Whole Foods, Bristol Farms and Haggen.

But Fresh Market, which had planned to open its first Coachella Valley store off of El Paseo this fall, has done an about-face, leaving the property owner with a 24,200-square-foot building that is being renovated to the market's specifications.

"We have a lease obligation with Fresh Market," Paul Goodman, vice president of property owner Allied District Properties of Chicago, said Monday. He didn't want to comment beyond that, except to confirm that a new tenant is being sought.

The building, part of the El Paseo Square shopping center on the corner of Sage Lane, between El Paseo and Highway 111, was formerly home to OfficeMax.

Fresh Market announced its plans to open a store in Palm Desert and January posted a billboard at the site, saying it was accepting job applications.

Since its founding in 1982 in Greensboro, N.C., the chain has grown to more than 160 stores in 26 states and touts itself as offering a "general store of yesteryear" atmosphere with produce, meat and seafood, bakery, floral and gifts and other departments.

The market had signed a long-term lease for the Palm Desert store, and the building has since been gutted with the renovation now well under way.

Two new spots in the shopping center, which includes a Wells Fargo bank, are also being created along with a new building adjacent to the Fresh Market spot for additional retailers, broker Sharon Carmichael said in January.

Palm Desert was to be home of the fourth California Fresh Market with other locations in Palo Alto, Santa Barbara and Laguna Hills.

But Fresh Market announced with its fourth quarter report in March that it was closing all of its California stores.

"This decision is consistent with the company's previously announced strategy to concentrate its unit growth resources in the eastern half of the United States over the next three years," the report stated.

"Despite the improving results of these stores in California, the company concluded that the pace of organic store growth was going to be slower than anticipated and believes it can achieve more consistent financial results and a better return on its investments by continuing to grow in markets within or closer to its existing markets at this time."

Since that March report, the company has announced expansion plans in a variety of states including Tennessee, Florida, North Carolina and Iowa.

Because of the prime location off of El Paseo, the city is hoping the property owners take their time vetting prospective tenants.

"We think it's more important to have a longtime great tenant there than to grasp at the first tenant to come along," Community Development Director Lauri Aylaian said.

Desert Sun reporter Sherry Barkas covers the cities of La Quinta, Indian Wells, Rancho Mirage and Palm Desert. She can be reached at sherry.barkas@thedesertsun.com or (760) 778-4694. Follow her on Twitter @TDSsherry