Fiesta Palms II Shopping Center

Highlights:

• Average Occupancy Rate: 91.0
• Fully Leased Income: $ 589217.0
• Gross Income: $ 544520.0

Description:

Fiesta Palms II is a well-positioned retail asset within the established Fiesta Palms Shopping Center, benefitting from four points of ingress, strong tenant synergy, and a high-traffic location along Alma School Road. The property sits just south of the signalized intersection at Baseline Road, which sees ±52,000 vehicles per day, with an additional ±36,550 VPD along its frontage. US-60 is less than one mile away with ±262,400 VPD.

The surrounding trade area is experiencing significant growth. Population density and household formations continue to rise as 2,519 new apartment units are under construction and 1,822 units have been delivered within 3 miles since the start of 2024. Within 5 miles there are 438,000 residents with an average household income of $97,321. Within 1 mile, household incomes average $102,000 and home values average $430,000.

The 80-acre Fiesta Mall redevelopment is less than one mile north of the property. Planned to deliver 1.85M SF of commercial space and 4,000 residential units, this ±$1B project is expected to become a transformative growth driver for the area for years to come.

Fiesta Palms II – Stabilized Retail with Short & Long-Term Upside Near $1B Redevelopment

Stabilized Retail Center – 91% occupied with long-term tenants
Rental Upside – Leases structured for mark-to-market growth
Long-Term Tenant Mix – From 5 years to 25 years
Recent capital upgrades – new roof 2024, upgraded LED lot lighting, monument sign refresh
Assumable Note – $1.85M loan @ 5.25% matures NOV 2028
High-Traffic Location – ±52,000 VPD at intersection and ±36,550 along frontage ensures strong tenant visibility
Growing Population Density – 2,500 new housing units, 1,800 under construction, Fiesta Mall to add ±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 80-acre, $1 billion Fiesta Mall redevelopment which will bring thousands of new residents, jobs, and consumers to the immediate trade area. This transformation is expected to increase retail demand and tenant performance at nearby centers like Fiesta Palms II.

Fiesta Palms II is a 91% 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 $1B 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. Leasing the remaining vacant suite raises the CAP rate to 7.43%.

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 housing units—further strengthening long-term retail demand.

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Listing ID: 67afa659-f873-4a6b-8b35-4a7327be6453