Westwood Financial sells Ahwatukee Mercado shopping center in Phoenix

Westwood Financial, an American commercial retail real estate investment firm, has announced the sale of the Ahwatukee Mercado grocery-anchored shopping center in Phoenix, Arizona.

The shopping center was successfully sold to a private buyer after being held for a period of 3.7 years, resulting in a profitable opportunistic return and an impressive equity multiple of 2x.

Built in 1985, Ahwatukee Mercado enjoys a prime location at the corner of 48th Street and Elliot Road in Phoenix.

With a total area of 125,716 square feet, the center is anchored by Safeway, one of the largest grocery chains (not included in the sale) in the US. The property also includes two free-standing restaurant pads and a diverse mix of national, regional, and local retailers such as Great Clips, Subway, H&R Block, Dogtopia, and Biscuits Restaurants.

Westwood Financial sells Ahwatukee Mercado shopping center in Phoenix. Photo courtesy of Business Wire.

When Westwood Financial initially purchased Ahwatukee Mercado in September 2019, the property presented significant growth potential. Through a strategic leasing and management approach, Westwood Financial is said to have successfully improved the performance of the shopping center in Phoenix.

At the time of the sale, the shopping center achieved an impressive leased occupancy rate of 95%, reflecting the successful execution of Westwood Financial’s vision.

The financial metrics achieved during the holding period highlight the effectiveness of Westwood Financial’s asset management strategy. Investors enjoyed an average annual Cash on Cash distribution of 6.8% and witnessed a remarkable total net operating income (NOI) growth of 61.3%, resulting in a compounded annual growth rate (CAGR) of 13.8% for the NOI, claimed Westwood Financial.

The sale of the Ahwatukee Mercado shopping center in Phoenix is said to exemplify Westwood Financial’s commitment to delivering exceptional results for its investors and optimizing the value of its shopping center portfolio.

Mark Bratt — Westwood Financial CEO said: “We are pleased with the successful sale of Ahwatukee Mercado and the excellent returns it generated for our investors. This transaction highlights our ability to identify and acquire prime properties with untapped potential, enhance their performance, and create value.”