Neighborhood Center: Above Market CAP, Below Market Rents
Fiesta Palms II – Stabilized Retail with Short & Long-Term Upside Near $2.5B Redevelopment
Marketing description
Fiesta Palms II is a 100% occupied shopping center in Mesa, AZ, combining stable in-place cash flow with multiple levers for growth. The property benefits from long-term tenants, strong traffic counts, an affluent and expanding consumer base, recent capital upgrades, and close proximity to the $2.5B Fiesta Mall redevelopment—positioning it for immediate rental upside, mid-term NOI growth, and long-term appreciation. Tenant leases are NNN with annual escalations and fair market value options that create a clear path for mark-to-market rent growth.
Strategically located near US-60 at Alma School & Baseline (±52,000 VPD) with ±36,550 VPD along its frontage, Fiesta Palms II sits adjacent to the affluent Dobson Ranch community. Within 3 miles, 1,800 apartment units have recently been delivered, 2,500 units are under construction, and the Fiesta Mall redevelopment is slated to add ±4,000 more further strengthening long-term retail demand.
Investment highlights
- Stabilized Retail Center – 100% occupied, all NNN L:eases
- Above Market CAP Rate (low-mid 7's)
- Rental Upside – Half below market, and most leases are structured for mark-to-market growth
- Long-Term Tenant Mix – From 5 years to 25 years
- High-Traffic Location – ±52,000 VPD at intersection and ±36,550 along frontage
- Growing Population Density – 2,500 new units, 1,800 under construction, Fiesta Mall adding ±4,000 more
- Strong Consumer Base – Surrounded by affluent, in-place population with solid purchasing power
- Future Growth Catalyst – Less than 1 mile from the $2.5 billion Fiesta Mall redevelopment which will add thousands of new residents, jobs, and consumers to the immediate trade area.
- Recent capital upgrades – new roof coating 2023, upgraded LED lot lighting, monument sign refresh
- Assumable Note – $1.85M loan @ 5.15% matures NOV 2033
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