Westwind Plaza: Stabilized Income with Significant Value-Add Potential

Westwind Plaza offers a compelling retail investment opportunity with a “covered land play” feel and strong value-add potential. This 18,511 SF single-story retail complex is positioned in a high-traffic corridor, with all leases expiring in 2026—creating a rare opportunity to reset rents to market rates and significantly increase asset value.

Property Overview

• Location: SEC of 107th Ave & West Indian School Rd, Avondale, AZ
• Asset Type: Multi-Tenant Retail Strip Center
• Building Size: 18,511 SF
• Lot Size: ~1.66 Acres
• Year Built: 2001
• Parking Ratio: 4.44 / 1,000 SF
• Tenants: Checkmate, Thai Gourmet Restaurant, Purcells Tire

Key Features of The Property

• High Visibility: Located in a dense retail corridor with strong daily traffic.
• Multi-Tenant Mix: Diverse tenant base providing stable in-place income.
• Efficient Layout: Designed for easy customer access and strong retail functionality.
• Established Asset: Proven performance with consistent occupancy.

Strategic Location Advantages

• Prime Intersection: Southeast corner of 107th Ave & Indian School Rd.
• Freeway Access: Located just minutes from Loop 101.
• Retail Synergy: Surrounded by national brands including Starbucks, Chase Bank, Fry’s, and Safeway.
• Strong Accessibility: Full ingress/egress with excellent connectivity to nearby residential areas.

Market Demand & Income Profile

• Growing Market: Avondale/West Valley continues to experience strong retail demand and population growth.
• Base Rent: $36,249.05 per month
• Total Monthly Income: ~$50,578
• Lease Structure: NNN leases with tenant reimbursements for expenses and property taxes.

Investment Highlights

• Immediate Upside: All leases expire in 2026, enabling rent reset to current market levels.
• Projected Rent Growth: ~8% increase on renewal with 3% annual escalations.
• Yield Expansion: Cap rate projected to grow from 5.5% to ~8.5% post-stabilization.
• Proven Location: Established retail hub with consistent foot traffic.

Financial Overview

• Purchase Price: $7,908,885
• Current Monthly Gross Income: ~$50,578
• Annualized Gross Income: ~$606,936
• Due Diligence Period: 45 Days
• Closing Timeline: 30 Days post due diligence

Investment Strategy

• Acquire & Reposition: Purchase at a 5.5% cap rate and capitalize on 2026 lease rollovers.
• Rent Optimization: Implement ~8% rent increases and structured escalations.
• Stabilize & Hold: Achieve ~8.5% yield on cost by early 2027 with built-in growth.

Conclusion

Westwind Plaza represents a strategic retail acquisition combining stable current income with a clear path to value creation. Through proactive lease management and market rent alignment in 2026, investors can unlock significant upside and achieve strong risk-adjusted returns.