The unidentified institutional owner wants to shift its investment into other industries, says the mall's marketing director. The one million-sf mall, which is at the northwest corner of Alma School Road and Superstition Freeway, is anchored by Dillard's, Macy's, Robinsons-May and Sears.
Based on market averages for retail space, Fiesta Mall should sell for at least $120 million. While this isn't the peak of the market, it's not the worst time to shop the mall, says Greg Abbott, a senior associate in the Phoenix office of CB Richard Ellis. "It's an okay time to sell," he tells GlobeSt.com. "We've rebounded well from the space that came available in the fourth and first quarters. The investors probably have a hold strategy and they have come to that time when it's come time to move on to something else."
The retail market has endured the downturn in the economy better than either office or industrial markets. Nearly one million sf of net absorption has occurred in the first half of the year. The Valley's overall vacancy rate now stands at 6.1% while Mesa's is 5.9%.
Fiesta Mall opened in 1979 and was the first mall to be built in the fast-growing East Valley. As more and more of the incoming population opted to live in the East Valley, the mall's prominence grew and faced little competition. That has since changed. Arizona Mills is positioned at the southeast corner of Interstate 10 and Superstition Freeway; Superstition Springs Mall at the juncture of the freeway and Power Road; and Chandler Fashion Center, set to open in October, at Price Freeway and Chandler Boulevard. Each is within 10 miles of Fiesta Mall.
Even with the increased demand, Fiesta Mall is well situated to continue to attract shoppers and therefore tenants, Abbott says. "The population is so strong in that area," he says. "It is very well located and the continued growth in the southeast Valley will only add to that strength." The 95%-occupied Fiesta Mall was remodeled two years ago and continues to do well against the new competition.
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