MESA, AZ – [February 10, 2023] – Blue West Capital has completed the sale of the 31,824 square foot multi-tenant retail center known as Mesa Gateway located at 5221, 5225, and 5229 S. Power Road, Mesa, AZ for $11,800,000. Tom Ethington, of Blue West Capital, represented the 1031 exchange buyer, an Arizona-based family. The seller was a Canada-based private real estate company.
Mesa Gateway benefits from excellent visibility along Power Road and Ray Road with over 48,000 vehicles per day crossing at the intersection. The property has five access points, three are along Power Road and two along Ray Road. The tenant lineup is a great mix of national and local tenants, creating synergy within the center. These tenants have staggered leases which eliminates large rollovers. Average rents are below market lease rates for the trade area allowing for future upside in rental escalations as well as protection from expiring leases.
The property is located directly across the street from a Walmart Supercenter and Gallery Park, a one million square foot mixed-use development including 400,000 square feet of Class A office space, 420 luxury apartments, 2 hotels, and 40 condos. With average household incomes at $116,900 within 3 miles paired with the surrounding developments, Mesa Gateway should expect to see consistent growth in foot traffic and overall performance of the center.
“We built an acquisition target list for the buyer focused on: growth demographics, overall location, property access, parking, in place rents, lease rollover, tenant quality, service focused tenant and more. We analyzed 58 multi-tenant centers in multiple target markets and found Mesa Gateway. The buyer is getting great value in a growing suburb of Phoenix with strong cash flow day one and future NOI growth from the rising tide of new office, single family housing, multifamily, and retail developments in the area.”
Tom Ethington, Managing Partner
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