Shops at Royal Palms
For Sale
$9,999,500
1855 North Stapley Drive, Mesa, AZ 85203
Fully leased retail center with strong traffic and diverse tenants.
Property Size34,229 SF
Price / SF$292.14
Days on Market158
Property Features for 1855 North Stapley Drive
General Information
Standard status
Active
Size
34,229 SF
Property subtype
Retail
Listing Agency:
Phoenix Commercial Advisors
Listed By:
Isaiah Clayton · License #SA713655000
(602) 342-9931
Source:
Phoenixcommercialadvisors
Added: Apr 1
Changed: Sep 2
Last Checked: Sep 5 at 4:17AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Phoenix Commercial Advisors
Investment Insights
Based on property information with market context.
Shops at Royal Palms is a 34,229 square foot retail center located in the north Mesa submarket. The property is 100% leased to a cohesive roster of internet-resistant, service-oriented tenants, including Anytime Fitness, Chaffee Pediatric Dentistry, Fyzical Therapy, and Daisy Nails. The center is shadow-anchored by a high-performing Fry’s Marketplace, which ranks in the top 10% of Arizona locations by traffic volume. A freestanding single-tenant medical building occupied by a deeply rooted medical practice provides diverse income streams and potential future break-up value. The property benefits from future upside from rent growth, with 5 of 9 tenants having either fair market value options or no options. Annual contractual rent increases for all tenants provide future rent growth and built-in inflation protection. The center attracts excellent traffic from the entire North Mesa submarket and beyond, shadow-anchored to the only Fry’s Marketplace north of Main Street in Mesa. The location at a highly trafficked intersection boasts over 72,000 vehicles per day. Situated in a dense residential pocket, the property is surrounded by nearly 43,000 multi-family units and over 100,000 single-family residences within 5 miles. Other traffic-drawing tenants in the center include Chipotle, O’Reilly, CVS, Taco Bell, and T-Mobile. The average household income is over $129,000 within a 1-mile radius. Nearly 244,000 residents within 5 miles of the center offer a stable and established customer base for daily needs. The property has a 6.10 cap.
Key Highlights
- 100% Leased with a 6.10% Cap Rate, providing immediate income.
- Shadow‑anchored by a high‑performing Fry’s Marketplace (top 10% in Arizona), driving significant traffic.
- Located at a highly trafficked intersection with over 72,000 vehicles per day.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$303,133
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.03%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$6,062,660
$6.1M
Cap Rate 7%
$4,330,471
$4.3M
Cap Rate 9%
$3,368,144
$3.4M
Market Conditions
NOI Build-Up for 34,229 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$464.1K $13.56/SF
− Vacancy
−$31.1K −$0.91/SF
EGI
$433.0K $12.65/SF
− OpEx
−$129.9K −$3.80/SF
NOI
$303.1K $8.86/SF
Area
Mesa, AZ
Vacancy
6.70%
Lease Rate
$13.56 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$6,062,660
Cap Rate 7%
$4,330,471
Cap Rate 9%
$3,368,144
Alternative Uses
Best Use
Retail
$4.33M
$3.79M – $5.05M
NOI $303,133 @ 7.0% cap · market cap 3.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.38M
$8.21M – $10.95M
NOI $656,770 @ 7.0% cap · market cap 6.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
531
Businesses Nearby
89k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 47%
Shops & Services 46%
Electronics 7%
Fry's Fuel Center
Shops & Services
21,257 visits/mo
0.2 miles
Taco Bell
Dining
15,310 visits/mo
0.2 miles
SUBWAY
Dining
10,033 visits/mo
0.2 miles
Andy's Frozen Custard
Dining
9,679 visits/mo
0.2 miles
Wells Fargo
Shops & Services
9,475 visits/mo
0.3 miles
Demographics for 85203, AZ
37,962
Population
14,020
Households
2.7
Avg Household Size
33
Median Age
29%
College-Educated
91%
High-School Grad
9.3 sq mi
ZIP Area
4,082
Density / Sq Mi
$72,851
Median Household Income
$40,524
Median Earnings
$1,388
Median Rent
$388,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - Fully leased retail center with strong traffic and diverse tenants.
Where is this shopping center located?
The property is located at 1855 North Stapley Drive Mesa, AZ.
What is the asking price?
The asking price for this property is $9,999,500.
What are key features of this property?
This property features: 100% Leased with a 6.10% Cap Rate, providing immediate income.; Shadow‑anchored by a high‑performing Fry’s Marketplace (top 10% in Arizona), driving significant traffic.; Located at a highly trafficked intersection with over 72,000 vehicles per day.
