Mission Plaza Shopping Center, Tucson, Arizona: A dominant shopping center anchored by Sprouts Farmer’s Market, Leslie’s Pool Supplies, Weight Watchers, Cricket Cellular and Nationwide Vision Centers
iCrowdNewswire -
Aug 3, 2015 10:43 AM ET
Mission Plaza Shopping Center
About this Property
U.S. Realty Partners and Compass Acquisition Partners are seeking investors to co-invest in the Mission Plaza Shopping Center located 4601 – 4699 E. Speedway Boulevard, Tucson, Arizona. The property consists of approximately 86,680 square feet of leasable area situated on approximately 7.14 acres of ground leased land. It is a dominant shopping center in the trade area and is anchored by Sprouts Farmer’s Market, Leslie’s Pool Supplies, Weight Watchers, Cricket Cellular and Nationwide Vision Centers. This is a stable cash flowing shopping center with built in rent increases. Sprouts will be exercising 2 5-year renewal options prior to our close of escrow (so they will have approximately 11 years of term with 2 5-year options remaining). Sprouts is a publicly traded (NASDAQ: SFM; Market Capitalization $4.8 Billion) strong regional specialty grocery chain with 205 stores in 12 states. The center is currently 89% leased (there are 5 shop vacancies totaling 9,258 square feet of vacancy) and we are purchasing it based solely on in-place income. Many of the shop tenants have been at the property for many years and have leases with at or under current market rents.
Key Points
Sprouts Farmers Market Anchored Center
Sprouts has very strong sales volume and has agreed to a 10 year lease extension during our escrow
Low purchase price of approximately $78 per square foot (well below estimated replacement cost of $150+ per square foot)
High traffic count intersection (+/- 100,000 total cars per day) and dense population (119,000 people in 3 miles)
Targeting a 10% cash yield to investors Year 1
This Shopping Center is on a ground lease with favorable economic terms and an expiration in 2039.