JLL Capital Markets closed the sale of the Trader Joe’s- and Sprouts-anchored retail center in Mesa, AZ
PHOENIX, ARIZONA -- Capital Markets announced today that it has closed the sale of Mesa Shores, a 110,917-square-foot retail center anchored by Trader Joe’s, Sprouts Farmers Market and EOS Fitness in the Phoenix-area community of Mesa, Arizona.
JLL marketed the property on behalf of the seller, ACF Property Management, Inc. Epic Real Estate Partners acquired the asset.
Originally constructed in 1995, Mesa Shores has been upgraded and renovated throughout the years, most recently in 2016. The 92.9-percent-leased center boasts two coveted and popular grocery anchors, Trader Joe’s and Sprouts Farmers Market. The grocers are complemented by a quality mix of daily needs and internet-resistant tenants, including EOS Fitness, Mesa Dogs 24/7, Peter Piper Pizza, Einstein Bros. Bagels and Club Pilates. More than half of the tenancy have operated at the property for more than 10 years, with seven tenants at this location for over 20 years.
Mesa Shores is positioned on 13.55 acres at 2048-2050, 2110, 2156 E Baseline Rd. at the northeast corner of Gilbert and Baseline roads in the heart of Mesa’s busiest retail corridor with visibility to more than 46,000 vehicles per day. This dense, infill location in suburban Phoenix houses more than 409,799 residents earning an average annual household income of $84,265 within a three-mile radius, and the population is projected to balloon 6.3 percent by 2026.
The JLL Retail Capital Markets team representing the seller was led by Managing Directors Patrick Dempsey and Gleb Lvovich and Analyst Patrick Anthon.
“Despite a changing interest-rate environment, neighborhood shopping centers represent a relative value compared to other commercial property sectors,” Dempsey said.
“Mesa Shores is a rare asset with two grocery stores, leasing upside and strong location in a growing submarket,” Lvovich added. “We have and will continue to see strong demand for this category of retail.”
JLL Research’s recently released Grocery Tracker 2022 report tracked the fastest-growing grocers in the U.S. in 2021, with Sprouts Farmers Market ranked as the fifth-fastest growing grocery store chain. Last year was a record year for grocery-anchored retail transactions, the second-highest level of activity recorded with trades topping $13.3 billion.