Zecca Plaza

1600-1800 E. Historic Highway 66, Gallup, NM

$13,929,000

Price

7.6%

Cap Rate

$1,058,622

NOI

Gallery
Street
Map
Overview
Cap Rate
7.6%
NOI
$1,058,622
Building Size
110,593 sqft
Lot Area
6.38 acres
Occupancy
89%
Description

Faris Lee Investments is pleased to offer the opportunity to purchase Zecca Plaza a strong performing grocery neighborhood center anchored by Albertsons, Goodwill Stores, Aaron Rents, O’Reilly Auto Parts, and Walgreens (NAP). The investment includes approximately 110,593 square feet of gross leaseable area situated on approximately 6.38 acres of land. The investment allows an investor to purchase the asset at well below replacement costs ($126 PSF), with low anchor rents (Albertson’s paying $6.51 PSF including percentage rent) providing strong fundamentals and low risk in a high barrier to entry market. The majority of the shop tenants have annual increases up to 3% which helps hedge against inflation and produces a 10 year CAGR of 5.4% representing an excellent income growth over the holding period.
Zecca Plaza contains many successful national tenants including Goodwill & O’Reilly Auto Parts all in the top tier either nationally or in New Mexico. In addition, Aaron Rents recently expanded their store by 7,530 square feet and extended their lease by 8 years.

The center is the only neighborhood center that serves the entire easterly portion of the trade area and benefits from direct access and visibility to Historic Highway 66 the main commercial arterial serving the City of Gallup. Zecca Plaza’s expanded trade area draws customers from an hour drive and consists of a population of 192,000 residents. The city of Gallup within Mckinley County is the hub of the “Four Corners” region of New Mexico, Arizona, Utah, and Colorado and home to several Rail Served Logistics and Industrial Parks serving as economic drivers for the region.

Highlights
  • Highly Successful Grocery Anchored Center
  • Value Add Opportunity with Strong Fundamentals
  • Well Below Replacement Cost / Strong Intrinsic Value
  • Only Neighborhood Center Serving Easterly Trade Area W/ Excellent Freeway Visibility
  • Strong in Place Income Growth & High 10 Year CAGR
  • Large Percentage of Square Footage & Income Comprised Of National Anchor Tenants
  • Gallup / McKinley County Economic Drivers and Significant Projects
Location
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