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.
- 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.