Mesa NNN Leased Investment
For Sale
$1,947,500
1559 S Gilbert Road, Mesa, AZ 85204
NNN leased investment opportunity in Central Mesa, Arizona.
Property Size6,506 SF
Price / SF$299.34
Days on Market265
Property Features for 1559 S Gilbert Road
General Information
Standard status
Active
Size
6,506 SF
Property subtype
Retail
Building Details
Year Built
1988
Listing Agency:
SVN | Desert Commercial Advisors
(623) 556-6420
Listed By:
Jonathan Levy · License #AZ #SA648012000
(623) 556-6420
Source:
Svndesertcommercial
Added: Nov 21, 2025
Changed: Jul 6
Last Checked: Aug 12 at 3:36AM
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 SVN | Desert Commercial Advisors
Investment Insights
Based on property information with market context.
This 6,506 square foot building is located in Central Mesa, Arizona, in the heart of the East Valley. The property is zoned LC and is situated north of the US-60 Interchange on Gilbert Road, benefiting from strong east valley demographics and a high traffic volume of nearly 45,000 vehicles per day. The property is a Native Grill & Wings franchise, the second oldest franchise operator in Arizona, with nearly 20 Arizona locations. The offering includes a NNN lease with multiple guarantors. The original lease term is 5 years, with two 5-year renewal options, the first of which has been formally exercised. The lease includes 2.5% annual rental increases. The property is located at the intersection of Gilbert Road and Southern Avenue in a densely populated area with over 400,000 residents in a 5-mile radius. The area has an estimated population exceeding 400,000 with steady annual growth of about 0.8%. The property is surrounded by national retailers like Target, AutoZone, and Burger King, fitness spots like The Shop Gym, diverse dining options, recreational attractions like nearby parks with frisbee golf, basketball, and volleyball courts, and top-rated schools. The Commemorative Air Force Airbase Museum, Mesa Arts Center, and Dutton Theater are a few short minutes away. Over $200,000 of recent HVAC, roof, and restaurant fixture improvements have been made. The lease agreement specifies the building size as 6,355 square feet.
Key Highlights
- NNN Lease with Multiple Guarantors (Franchisee and Corporate) providing investment security.
- Strategically located north of the US‑60 Interchange on Gilbert Road with high traffic volume (45,000 VPD).
- Original 5‑year lease with two 5‑year renewal options (Option 1 Formally Exercised) and 2.5% annual rental increases.
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
$88,065
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
4.52%
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%
$1,761,300
$1.8M
Cap Rate 7%
$1,258,071
$1.3M
Cap Rate 9%
$978,500
$978.5K
Market Conditions
NOI Build-Up for 6,506 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
$124.9K $19.20/SF
− Vacancy
−$7.5K −$1.15/SF
EGI
$117.4K $18.05/SF
− OpEx
−$29.4K −$4.51/SF
NOI
$88.1K $13.54/SF
Area
ZIP 85204
Vacancy
6.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
25.00%
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%
$1,761,300
Cap Rate 7%
$1,258,071
Cap Rate 9%
$978,500
Alternative Uses
Best Use
Specialty Retail
$1.26M
$1.10M – $1.47M
NOI $88,065 @ 7.0% cap · market cap 4.52%
Second Best
Retail
$1.09M
$953.0K – $1.27M
NOI $76,237 @ 7.0% cap · market cap 3.91%
Theoretical Best
Office A
$2.16M
$1.89M – $2.52M
NOI $151,217 @ 7.0% cap · market cap 7.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
679
Businesses Nearby
365k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 27%
Shops & Services 26%
Dining 25%
Groceries 11%
Target
Superstores
99,024 visits/mo
0.5 miles
QuikTrip
Shops & Services
52,415 visits/mo
0.4 miles
Trader Joe's
Groceries
41,342 visits/mo
0.5 miles
Circle K
Shops & Services
21,347 visits/mo
0.3 miles
Harbor Freight Tools
Home Improvements & Furnishings
18,035 visits/mo
0.3 miles
Demographics for 85204, AZ
63,808
Population
24,536
Households
2.6
Avg Household Size
33
Median Age
20%
College-Educated
84%
High-School Grad
9.9 sq mi
ZIP Area
6,445
Density / Sq Mi
$69,474
Median Household Income
$40,347
Median Earnings
$1,426
Median Rent
$296,000
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Catertainment — 1107 S Gilbert Rd, Mesa, AZ 85204
- Bartender Phoenix AZ — 942 s kachina, mesa, az 85282
- Just Catering — Mesa, AZ 85204
- The Taco Spot Food Truck Mexican Food Catering — 1126 s gilbert rd, mesa, az 85204
- Gilded Grub — 1235 S Gilbert Rd #25, Mesa, AZ 85203
Frequently Asked Questions
What type of property is this?
Restaurant - NNN leased investment opportunity in Central Mesa, Arizona.
Where is this restaurant located?
The property is located at 1559 S Gilbert Road Mesa, AZ.
What is the asking price?
The asking price for this property is $1,947,500.
What are key features of this property?
This property features: NNN Lease with Multiple Guarantors (Franchisee and Corporate) providing investment security.; Strategically located north of the US‑60 Interchange on Gilbert Road with high traffic volume (45,000 VPD).; Original 5‑year lease with two 5‑year renewal options (Option 1 Formally Exercised) and 2.5% annual rental increases.
