Flying Horse Investments Completes Neighborhood Shopping Center Acquisition in Phoenix
Fiesta Palms Shopping Center is a 53,630 square foot specialty grocery-anchored shopping center located within the greater Phoenix metro area.
Flying Horse Investments, LLC ("FHI") is pleased to announce the recent acquisition of Fiesta Palms Shopping Center, a 53,630 square foot specialty grocery-anchored shopping center located within the greater Phoenix metro area. The acquisition represented a unique opportunity to secure a highly sought-after asset type in today's competitive real estate market at an attractive cost basis. FHI successfully completed the off-market transaction with a local family that owned the property for over 30 years. Acquisition financing was facilitated by Justin Weissman of 1st Century Bank, a division of MidFirst Bank, the country’s largest privately owned bank, who provided seamless bridge financing on short notice, ensuring a smooth and efficient closing process. Looking ahead, FHI plans to collaborate with Pegasus Capital Markets in early 2025 to secure permanent financing for the property, aligning with its longer-term investment strategy.
Fiesta Palms Shopping Center features a unique combination of 17% vacancy and below-market rents rarely found at a shopping center with this degree of prominence and exposure. FHI plans to implement aggressive leasing oversight and management to increase leasing velocity and improve the property’s overall performance.
"Fiesta Palms sits at a signalized intersection with over 57,000 cars per day, providing maximum exposure and high visibility for the shopping center’s tenants,” continued Spicer. “The property’s close proximity to major transportation routes, large hospitals, and community colleges further enhances accessibility and desirability for both tenants and customers, reinforcing its position as a prime retail destination," added Spicer. "With professional leasing oversight and management, we see tremendous opportunity for immediate upside through the lease-up of vacant space and an opportunity to bring rental rates in line with the broader market."
“Phoenix has been a key target market for us since our inception, and I’m thrilled to acquire an asset that I’ve been familiar with throughout my career”
"In a market characterized by record-low vacancy rates, we are incredibly fortunate to secure a property with strong fundamentals and significant upside potential. This acquisition wouldn’t have been possible without the exceptional relationships we’ve built with Alan and Dena Zell of Capital Asset Management and David Bernstein and Dave Murphy of Bernstein & Murphy. I’m deeply grateful for their trust and collaboration in making this deal a reality."
FHI targets high-growth markets across the Sunbelt region and select portions of the Midwest and Mountain West regions. "We target properties where we can add value through active management, including leasing, physical improvements, re-development, outparcel development, or break up of shopping centers into higher-valued component parts," added Shulman.
To execute its business plan, FHI hired Pegasus Asset Management (“Pegasus”), which manages a $3.5 billion portfolio of predominantly retail assets consisting of over 350 properties, 5 million rentable square feet, and 1,000 tenants nationwide.
"Pegasus’ operational expertise enables us to run as a vertically integrated investment firm with acquisition sourcing, underwriting, asset management, project and construction management, and leasing capabilities," said Shulman. "After watching the transformation of our Oakland Park asset, I couldn’t be more excited to start unlocking the potential of Fiesta Palms."
FHI is actively seeking and evaluating acquisition opportunities including single and multi-tenant retail properties nationwide ranging in pricing from $3M to $30M. Acquisition criteria may be accessed here.