FIESTA PALMS II

INVESTMENT HIGHLIGHTS

• Below Market Rents: Value-Add Opportunity Fiesta Palms II offers future value-add potential through the ability to increase in-place rents as tenants’ leases expire – some of which are significantly below market. The average rent per square foot for tenants in the center is $15.73/SF, considerably lower than the prevailing market rates for similar properties in this high-demand area (Market Rent of between $18.00 – $22.00/SF). This discrepancy offers a unique upside for investors, who can capitalize on future lease renewals and rent adjustments to bring rates in line with the broader market, enhancing the asset’s revenue potential.
• Tenant Vacancy: Immediate Upside Potential One of the center’s tenants, Hustle & Elevate Fitness, recently went dark, occupying ±2,502 SF with a lease running until January 2027. Given the tenant’s low current rent of $14.76/SF, this provides an immediate upside for an investor to backfill the space at a significantly higher rent while still collecting rent from the dark tenant in the interim.

LOCATION HIGHLIGHTS

• High-Traffic Intersection: Maximum Visibility Fiesta Palms II is located at the prominent intersection of Alma School Road and Baseline Road, one of Mesa’s busiest corridors, which boasts traffic counts of over 51,000 vehicles per day. This high visibility ensures maximum exposure for the shopping center’s tenants, driving consistent foot traffic and supporting long-term retail success. The proximity to key transportation routes, including US 60, further enhances accessibility and desirability for both tenants and customers, solidifying its position as a prime retail destination.
• Excellent Demographics: Strong Consumer Base The center is located in the Dobson Ranch submarket and near The Dobson Ranch Golf Course – which has consistently been recognized by Golf Digest as one of the best public courses in the state, with a 5-mile radius boasting a population of over 438,026 residents and more than 171,000 households. The average household income in a 5-mile radius is approximately $97,300, reflecting solid purchasing power and supporting strong retail demand. This demographic strength creates a solid foundation for retail tenants seeking to tap into a vibrant, affluent consumer base.
• Multifamily Development Boom: The immediate vicinity of Fiesta Palms is experiencing a surge in multifamily development, with several projects either recently completed or currently under construction within a 5-mile radius. Currently, there are over 2,300 units of multifamily under construction and this influx of new residents will drive additional foot traffic to the center, making it an even more attractive location for businesses looking to serve the expanding community.